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+2 basis (w.e.f. April 1, 2003). 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+2 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 second 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+2 on net basis, i.e., buy and sell positions of a member-broker in the same scrip are netted and the net quantity and value is required to be settled. However, transactions in securities of companies, which are in “Z” group or have been placed under “trade-to-trade” by BSE as a surveillance measure (“T” ), are settled only on a gross basis and the facility of netting of buy and sell transactions in such scrips is not available.
The transaction in “F” group securities representing “Fixed Income Securities” and “G” group representing Government Securities for retail investors are also settled at BSE on T+2 basis.
Thus, the pay-in and pay-out of funds and securities takes places on the second business day (i.e., excluding Saturday, Sunday and bank & Exchange trading holidays) of the day of the execution of the trade.
The Information Systems Department of the Exchange generates, inter-alia, the following statements, which can be downloaded by the member-brokers in their back offices on a daily basis.
(a) Statements giving details of the daily transactions entered into by the member-brokers.
(b) Statements giving details of margins payable by the member-brokers in respect of the trades executed by them.
(c) Statements of securities and fund obligation.
(d) Delivery/Receive orders for delivery/receipt of securities.
The settlement of the trades (money and securities) done by a member-broker on his own account or on behalf of his individual, corporate or institutional clients may be either through the member-broker himself or through a SEBI registered custodian appointed by him/client. In case the delivery/payment in respect of a transaction executed by a member-broker is to be given or taken by a registered custodian, then the latter has to confirm the trade done by a member-broker on the BOLT System through 6A-7A entry. For this purpose, the custodians have been given connectivity to BOLT System and have also been admitted as clearing member of the Clearing House. In case a transaction done by a member-broker is not confirmed by a registered custodian within the time permitted, the liability for pay-in of funds or securities in respect of the same devolves on the concerned member-broker.