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SEs agree rolling settlement is not possible now

The existing infrastructure of the stock exchanges, banking and postal services is not in a position to undertake the revised system of rolling settlement in physical segment, according to senior officials of major stock exchanges.

In a meeting with officials of the National Securities Depository Limited and the Security and Exchange Board of India on Wednesday, it was unanimously felt by all the stock exchanges that the rolling settlement in the physical segment was not workable at this stage.

The current infrastructure facility at the exchanges just can not cope up with the daily pay-in, pay-out, auction, settlement and, withdrawal and deposits of scrips.

On dematerialisation of shares and its settlement, it was decided that with effect from January 4, 1999, all settlements of trades done on an exchange in the securities of SBI, ICICI, HDFC, L&T, BPCL, Infosys, IDBI, BoI and Indusind Bank must be in dematerialised form. This will become effective only for those exchanges which are connected to the depository and for others, the requirement of mandatory settlement in dematerialised form will not be initially applicable.

In respect of the other securities in which trading has been made compulsory for institutional investors, the earlier decision regarding settlements of trades will remain unchanged, it was clarified.

UNI