Hdfc Bank Gets Nse Clearing Settlement Work

HDFC Bank has been appointed as a clearing settlement bank to the National Stock Exchange (NSE).

Paresh Sukthankar, vice president with the bank, said: This is part of the new capital market infrastructure services HDFC has started as part of its service package to NSE members. The bank is also a depository participant with the National Securities Depository (NSDL). Prior to HDFCs appointment by the NSE, Canara Bank used to clear all settlements on behalf of its members (brokers).

However, volumes have grown tremendously and in order to cope with the same, NSE invited proposals from various commercial banks. Based on a review of the proposals and capabilities of various banks, NSE formally agreed to appoint HDFC Bank as the second clearing bank.

 

NSE members can now use HDFC Bank to route their settlements and designate a clearing account for the weekly pay-ins and pay-outs. A system for electronic settlements from the NSE is readily available. Banking requirements for the NSE members including instant funds transfers, etc, will be handled by the bank.

HDFC has installed state-of-art systems to facilitate inter-connectivity between branches and link-up with on-line system, Sukthankar said.Information on broker accounts can be centrally accessed at Mumbai for settlements irrespective of where they are located. Brokers margins as stipulated by the National Stock Exchange from time to time based on trading volumes will be reflected in the accounts statement instantaneously. A terminal will also be installed at NSEs premises which will be directly connected to the banks accounting system, thereby providing on-line access/extracts for settlements.HDFC is the only bank which is a depository participant and an NSE clearing bank, Sukthankar said.While the scheme has only been recently introduced, the response is heartening

The bank has also recently signed up as a depository participant under the newly set-up NSDL, wherein the members clearing accounts settlement for dematerialised shares can be done through the bank. This eliminates the need for paper work like certificates, transfer forms etc involved in traditional securities dealings by converting physical securities into electronic ones.

The services provided by the bank include securities account, dematerialisation, off market settlements, clearing house and rematerialisation.

The bank has also undertaken expansion plans. It has established a centralised data base in Powai, Mumbai. All its 20 branches, as well as its auto teller machines (ATMs) are inter-linked and connected with the central data base.

The office at Powai will also house phone banking services. The bank plans to expand its branch network to 30 by the end of the next fiscal.