Compulsory Rolling Settlement
All transactions in all groups of securities in the Equity segment and Fixed Income securities listed on BSE are required to be settled on T+1 basis (w.e.f. from January 27, 2023). The settlement calendar, which indicates the dates of the various settlement related activities, is drawn by BSE in advance and is circulated among the market participants.
Under rolling settlements, the trades done on a particular day are settled after a given number of business days. A T+1 settlement cycle means that the final settlement of transactions done on T, i.e., trade day by exchange of monies and securities between the buyers and sellers respectively takes place on next business day (excluding Saturdays, Sundays, bank and Exchange trading holidays) after the trade day.
The transactions in securities of companies which have made arrangements for dematerialization of their securities are settled only in demat mode on T+1 on net basis, i.e., buy and sell positions of a member-broker in the same Security are netted and the net quantity and value is required to be settled. However, transactions in securities of companies, which are in group for Gross Settlement or have been placed under "trade-to-trade" by BSE as a surveillance measure ("T" group) or, are settled only on a gross basis and the facility of netting of buy and sell transactions in such Securities is not available.
The transactions in 'F' group securities representing "Fixed Income Securities" and " G" group representing Government Securities for retail investors are also settled at BSE on T+1 basis.
In case of Rolling Settlements, pay-in and pay-out of both funds and securities is completed on the same day.
Members are required to make payment for securities sold and/ or deliver securities purchased to their clients within one working day (excluding Saturday, Sunday, bank & BSE trading holidays) after the pay-out of the funds and securities for the concerned settlement is completed by BSE. This is the timeframe permitted to the Members to settle their funds/ securities obligations with their clients as per the Byelaws of BSE.
The following table summarizes the steps in the trading and settlement cycle for Securities under CRS:
| T |
- Trading on Trading Terminals and daily downloading of statements showing details of transactions and margins at the end of each trading day.
- Downloading of provisional securities and funds obligation statements by member-brokers.
- OTR (Give-up) entry by the member-brokers till 08:00 p.m. on T Day
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| T+1 |
- OTR Confirmations (Take-up) by the Custodians upto 07:30 a.m. Downloading of final securities and funds obligation statements by members by 09:30 a.m.
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| T+1 |
- Pay-in of funds and securities by 11:00 a.m. and pay-out of funds and securities by 1:30 p.m. The member-brokers are required to submit the pay-in instructions for funds and securities to banks and depositories respectively by 10:30 a.m.
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| T+1 |
- Auction on BOLT at 2.00 p.m.
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| T+2 |
- Auction pay-in and pay-out of funds and securities by 08:00 a.m. and 10:00 a.m. respectively.
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The pay-in and payout of funds and securities takes places on the second business day (i.e., excluding Saturday, Sundays and bank and BSE trading holidays) of the day of the execution of the trade.
The settlement of the trades (money and securities) done by a Member on his own account or on behalf of his individual, corporate or institutional clients may be either through the Member himself or through a SEBI registered custodian appointed by him/client. In case the transactions done by trading members are to be settled through custodian, members can give-up such trades through 6A-7A module provided in RTRMS system through "Position Transfer Online (Equity)". In the same module, facility has been provided in RTRMS through "Position Confirm Online (Equity)" to registered Custodians to confirm/reject such given-up trades. In case a registered custodian does not confirm a transaction done by a Member within the time permitted, the liability for pay-in of funds or securities in respect of the same devolves on the concerned Member.
The following statements can be downloaded by the Members in their back offices on a daily basis.
- Statements giving details of the daily transactions entered into by the Member.
- Statements giving details of margins payable by the Member in respect of the trades executed by him.
- Statements of securities and fund obligation.
- Delivery/Receive orders for delivery /receipt of securities.
BSE generates Delivery and Receive Orders for transactions done by the Members in A, B, and F and G group Securities after netting purchase and sale transactions in each Security whereas Delivery and Receive Orders for "T", "C" & "Z" group Securities and Securities which are traded on BSE on "trade-to-trade" basis are generated on a gross basis, i.e., without netting of purchase and sell transactions in a Security. However, the funds obligations for the Members are netted for transactions across all groups of securities.
The Delivery Order/Receive Order provides information like the Security and quantity of securities to be delivered/received by the Members through the Clearing House. The Money Statement provides Security wise/item wise details of payments/receipts of monies by the Members in the settlement. The Delivery/Receive Orders and Money Statement can be downloaded by the Members in their back office
Pay-in and Pay-out for 'A', 'B', 'T', 'C', "F", "G" & 'Z' Group of Securities
The trades done on BOLT by the Members in all securities in CRS are now settled on BSE by payment of monies and delivery of securities on T+1 basis. All deliveries of securities are required to be routed through the Clearing House,
The Pay-in /Pay-out of funds based on the money statement and that of securities based on Delivery Order/ Receive Order issued by BSE are settled on T+1 day.
Demat pay-in :
The Members can effect pay-in of demat securities to the Clearing House through either of the Depositories i.e. the National Securities Depository Ltd. (NSDL) or Central Depository Services (I) Ltd. (CDSL). The Members are required to give instructions to their respective Depository Participants (DPs) specifying details such as settlement no., effective pay-in date, quantity, etc.
Members may also effect pay-in directly from the clients' beneficiary accounts through CDSL. For this, the clients are required to mention the settlement details and clearing member ID through whom they have sold the securities. Thus, in such cases the Clearing Members are not required to give any delivery instructions from their accounts.
In case a Member fails to deliver the securities, the value of shares delivered short is recovered from him at the standard/closing rate of the Securities on the trading day.
Auto delivery facility :
Instead of issuing delivery instructions for their securities delivery obligations in demat mode in various Securities in a settlement /auction, a facility has been made available to the Members of automatically generating delivery instructions on their behalf from their CM Pool accounts maintained with NSDL and CM Principal Accounts maintained with CDSL. This auto delivery facility is available for CRS (Normal & Auction) and for trade-to-trade settlements. This facility is, however, not available for delivery of non-pari passu shares and shares having multiple ISINs. Members wishing to avail of this facility have to submit an authority letter to the Clearing House. This auto delivery facility is currently available for Clearing Member (CM) Pool accounts and Principal accounts maintained by the Members with the respective depositories.
Pay-in of Securities in Physical Form
All settlements are only in Demat Mode.
Funds Pay-in
The bank accounts of Members maintained with the clearing banks, viz., Axis Bank Ltd.,Bank of India, Bank of Baroda, Canara Bank, Citi Bank, Corporation Bank, Dhanalaxmi Bank, HDFC Bank Ltd., Hongkong & Shanghai Banking Corporation Ltd., ICICI Bank Ltd, Indusind Bank Ltd., IDBI Bank, Kotak Mahindra Bank, Oriental Bank of Commerce., Punjab National Bank, State Bank of India, Standard Chartered Bank, Union Bank of India, Yes Bank are directly debited through computerized posting for their funds settlement obligations.
In case of Members whose funds pay-in obligations are not cleared at the scheduled time, action such as levy of penalty and/or deactivation of BOLT TWSs , is initiated as per the prescribed penalty norms.
Securities Pay-out
Demat securities are credited by the Clearing House in the Pool/Principal Accounts of the Members. BSE has also provided a facility to the Members for transfer of pay-out securities directly to the clients' beneficiary owner accounts without routing the same through their Pool/Principal accounts in NSDL/ CDSL. For this, the concerned Members are required to give a client wise break up file which is uploaded by the Members from their offices to the Clearing House. Based on the break up given by the Members, the Clearing House instructs the depositories, viz., CDSL & NSDL to credit the securities to the Beneficiary Owners (BO) Accounts of the clients. In case delivery of securities received from one depository is to be credited to an account in the other depository, the Clearing House does an inter-depository transfer to give effect to such transfers.
In case of physical securities, the Receiving Members are required to collect the same from the Clearing House on the pay-out day.
Funds Payout
The bank accounts of the Members having pay-out of funds are credited by the Clearing House with the Clearing Banks on the pay-in day itself
In case a Member fails to deliver the securities, the value of shares delivered short is recovered from him at the standard/closing rate of the Securities on the trading day.
Penalty Norms
For Settlement (Pay-in) Defaults
| Non-fulfillment of funds obligation (viz. Normal pay-in, securities shortage pay-in and auction pay-in) and failure to deposit additional capital towards capital cushion requirement as per SEBI norms within stipulated time. |
If the shortage amount is more than the Base Minimum Capital (at present Rs.10 lakhs) : |
0.07% per day of the shortage amount, and the trading facility of such member will be withdrawn (Trading terminals will be de-activated/put on Risk Reducing Mode) and the member's securities pay-out to be withheld. |
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If the funds shortage is less than the Base Minimum Capital (at present Rs.10 lakhs) :
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0.07% per day of the shortage amount and, in cases where the amount of shortage exceeds 20% of the BMC on 6 occasions within a period of three months, then also the trading facility of the member to be withdrawn (Trading terminals will be de-activated/put on Risk Reducing Mode) and the securities pay-out due to the member will be withheld. The member will be permitted to trade upon recovery of the complete shortages of funds and subject to the member providing a deposit equivalent to his cumulative funds shortage as the "funds shortage collateral".
Such deposit will be kept with the Clearing Corporation for a period of ten rolling settlements and released thereafter.
Such deposit will not available against margin liabilities and also such deposit will not earn any interest.
Such deposit can be placed with ICCL by member brokers by way of cash, bank fixed deposit receipts or bank guarantee.
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In case a member fails to meet his obligation amounting to less than 20% of BMC, a penalty equivalent to his obligation amount or Rs.5,000/- whichever is less will be levied:
Further, if a member fails to meet his pay-in obligations of a normal settlement, auction settlement and that of securities delivered short in the pay-in for the same settlement, then such instances of default would be considered as a single instance for the purpose of counting violations and levying penalties as above.
Non deposit of additional capital under capital cushion requirement would be considered as a separate instance for the purpose of counting instances of violation and levying fines/penalties as above.