Sebi Calls For Details Of Corporate Link-Ups With Nsdl, Cdsl

The Securities and Exchange Board of India (Sebi) has asked the two major depositories National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) to forward the list of companies which have established connectivity with them as on September 30, October 31 and on November 30.

From December 2001 onwards, the depositories shall forward the list of companies which have established connectivity with them as on the last Monday of every month so as to reach the markets regulator the following Monday.

The exchanges have also been told to introduce only those companies under the rolling settlement mode which have established connectivity with both the depositories. There will be a gap of three months between the date of establishing connectivity with both the depositories and the date for trading under rolling settlement mode. With effect from January 02, 2002 no scrip shall be traded on weekly settlement basis.

 

It has been reported that there are companies who are yet to sign agreements and establish connectivity with both the depositories. The advisory group on secondary markets, which met here today, recommended that the scrips of such companies which have not signed agreements and established connectivity with the depositories by September 28, shall be traded on a trade-to-trade basis in the rolling settlement since January 02. The scrips will be moved into normal rolling settlement once they establish connectivity with the depositories as per the procedures already laid down by Sebi. This would imply that from January 2, there would not be account period trading in the equity market in any stock exchange in the country.

Sebi reviewed the progress achieved in the number of companies that have established connectivity with the depositories. As on date there are about 4,000 companies that have established connectivity with the depositories.