Indian Clearing Corporation Limited (ICCL) undertake clearing and settlement activities for BSE New Debt Segment (NDS) Segment.
Clearing & Settlement procedure/norms for NDS segment :
The settlement of trades done in NDS Segment are to be settled only in dematerialised mode on a DVP - 1 (no netting of securities and funds) or DVP - 3 basis (netting of securities and funds) depending on the type of corporate bonds, with a settlement cycle of T+1 basis.
Following market types are to be used for giving instructions to the Depositories for securities pay-in :
|For DVP – 1 transactions
|For DVP – 3 transactions
The pay-in and pay-out of funds and securities shall be through the designated clearing bank account and demat securities settlement pool account respectively of the member brokers
For securities demat account the NDS Member may approach the depository participants in respect of Pool / Principal accounts for settlement of securities obligations under NDS
The transactions under NDS are to be settled on a T+1 day basis as per time lines and settlement schedule specified by ICCL from time to time. The members need to maintain clear balance in their Bank Accounts / Depository Pool Accounts for pay-in of funds / securities by the scheduled time on T+1 day
Settlement guarantee will be provided in respect of bonafied trades settled on DVP-3 basis, No settlement guarantee will be provided for trades settled on DVP-1 basis
Auction settlement pay-in / pay-out will be on Auction Day+1 day.
Securities not received in auction will be closed-out
For details and latest updates members may refer BSE and ICCL circular Nos. and any other circulars issued from time to time.