6A/7A

A mechanism whereby the obligation of settling the transactions done by a member-broker on behalf of a client is passed on to a custodian based on confirmation of latter. The custodian can confirm the trades done by the member-brokers on-line and upto 11 a.m. on the next trading day. The late confirmation of transactions by the custodian after 11:00 a.m. upto 12:15 p.m., on the next trading day is, however, permitted subject to payment of charges for late confirmation @ 0.01% of the value of trades confirmed or ` 10,000/-, whichever is less.

The introduction of settlement on T+2 basis, as discussed above, has considerably reduced the settlement risk, ensured early receipt of securities and monies by the buyers and sellers respectively and has brought the Indian capital market on par with the internationally accepted standard of settlements.