Carry Forward, Automated Lending & Borrowing and Continuous Net Settlement in the Rolling Settlement

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..... ector Of all the Stock Exchanges Sir/Madam, Carry Forward, Automated Lending & Borrowing and Continuous Net Settlement in the Rolling Settlement. A meeting of the Stock Exchanges which have the facilities of carry forward and automated lending and borrowing was held on August 23, 2000 at SEBI to discuss the preparedness of the stock exchanges for the introduction of carry forward, automated l .....

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..... e variants. During the term of a carry forward for greater than 1 day the investor may square off the carry forward position. In such a case, the investor would first have to square off the position in the market by carrying out appropriate buy/sell transaction and then do a contra carry forward for the remaining period of the carry forward. e.g. an investor who carries forward for one week (5 tra .....

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..... tionally, the CNS has been effectively employed by the clearing corporations for the settlement of transactions and for maintaining an orderly flow of money and securities. The CNS is carried out by the Clearing Corporation/Clearing House as a post settlement processing whereby, the seller who has failed to deliver securities can postpone the settlement of his obligations to the subsequent settlem .....

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..... eiving member has the option of insisting on delivery. The members can indicate the preference for compulsory receipt of delivery in which case it will be allocated higher priority for delivery receipt. In the event of failure to deliver shares to such receiving members, these positions would be removed from the CNS and subjected to compulsory delivery. Compulsory buy-in or close-out would be effe .....

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..... EBI to satisfy itself. (3) Eligibility of scrips The criteria for scrips eligible for these products would be issued separately. (4) Risk Containment Measures Risk containment measures for these products would also be issued separately. Yours faithfully P. K. BINDLISH Division Chief Secondary Market Depository, Research & Publications Department e-mail : [email protected]
Circular, .....

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