9911796707
TMI BlogCarry Forward, Automated Lending & Borrowing and Continuous Net Settlement in the Rolling SettlementX X X X Extracts X X X X X X X X Extracts X X X X ..... nding 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 lending borrowing and the continuous net settlement in the rolling settlement. Earlier, SEBI Board in its meeting held on June 14, 2000 considered and approved the proposals of the carry forward and the continuous net settlement system in the rolling settlement.The features of the carry forward, automated lending and borrowing and the continuous net settlement in the rolling settlement were discussed in the meeting of the exchanges held on August 23, 2000. (1) Salient Features (a) Carry Forward under Rolling Settlement (CFRS) : There would be carry forwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffectively 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 settlement. This is primarily a tool for imparting flexibility to the seller. The key features of the CNS are as under : The CNS would be available only in the Compulsory Rolling Settlement segment. CNS is essentially post settlement processing. The CNS is delivery initiated. In the CNS process, the short deliveries of the seller are m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and administrative infrastructure for monitoring and enforcing the margining system and surveillance capability. If necessary, an inspection of the exchange would be carried out by the SEBI 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 - Trad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
