The pay-in and pay-out of settlement obligations for securities in Equity Cash Segment is to be done by members in demat mode or physical mode depending on the type/group of securities (i.e. compulsory demat, optional demat or physical mode) in which the member has traded. The pay-in and pay-out process in the demat mode and physical mode is as under:
Securities pay-in in demat mode
Clearing Members are required to give instructions to their respective Depository Participants (DPs) specifying details viz, settlement no., effective pay-in date, quantity, etc. for effecting pay-in of the demat securities to ICCL by the stipulated time on the scheduled settlement day.
Auto delivery facility for pay-in of demat securities
Members can avail the auto delivery facility for pay-in of demat securities whereby delivery instructions to the concerned depositories are automatically generated on behalf of the Clearing Members for transfer of demat securities from their Pool account/Principal account maintained with the depositories.
Securities pay-in in physical mode
In case of delivery of securities in physical mode, the Clearing Members are required to deliver the securities to ICCL in special closed pouches along with a soft copy of file (in prescribed format) containing the relevant details viz, settlement number, distinctive numbers, scrip code, quantity, etc., of such physical securities obligation. A hard copy of the details of securities pay-in is also required to be submitted by the Clearing Member along with the physical securities.
Securities pay-in shortages
*As may be specified by ICCL from time to time.
On scheduled pay-in/pay-out day of respective settlement, a statement of securities short delivered/received is provided to Clearing Members. The value of un-delivered securities is immediately recovered from the Clearing Members through their Clearing Banks.
Auction and Close-out of securities settlement shortages
The auction / close-out are conducted as per the auction/ close-out schedule declared from time to time. Currently auctions are conducted on T+2 day. Auction Settlement is done on T+3 day. The selling members who have failed to deliver securities in a particular settlement are not allowed to offer the same securities in the auction pertaining to that settlement. In case of pay-in/pay-out of multiple settlements are scheduled on same day, then the auction in respect of first settlement is conducted on the same day and the auction in respect of second settlement is conducted on the next trading day. In cases where a particular scrip could not be bought-in the auction or in case where members fail to deliver securities offered in auction then the same is closed out.
Securities Pay-out in demat and physical mode
After completion of the settlement pay-in process by ICCL, the pay-out of demat securities are credited by ICCL to the depository Pool / Principal Accounts of the Clearing Members. In case of pay-out of demat securities to Clearing Members, ICCL has provided facilities to members for (a) direct pay-out of demat securities to clients' demat accounts and (b) pay-out of securities in pool account of the concerned member with selected Depository.
Direct pay-out of demat securities to clients' beneficiary account
ICCL has provided a facility of direct pay-out of demat securities to clients' demat accounts, whereby pay-out of demat securities of the members are directly released to their respective clients' demat beneficiary accounts. For availing the said facility of direct pay-out of demat securities to the clients' beneficiary account, the concerned members are required to upload the settlement-wise client- wise break up file to ICCL. Based on the details provided in the said uploaded file to by the members to ICCL, the pay-out of demat securities is released to the demat accounts of the respective clients of the members.
Pay-out of securities in member's pool account with selected Depository
ICCL has provided a facility to Clearing Members to receive their demat securities pay-out in their pool account with selected depository. Accordingly, Clearing Members can receive pay-out of demat securities in their specified pool account in either of the depositories, viz, NSDL or CDSL.
Pay-out of securities in physical mode
In case of pay-out of securities in physical mode, the receiving members are required to collect the same from ICCL as per the time schedule on the pay-out day.