Rolling Settlement To Begin In Phases From End- November

At a meeting with Sebi here on Wednesday, representatives of six major stock exchanges agreed to the November-end deadline for ensuring that their systems are ready for carry forward settlement (CFS) in rolling settlement, Sebi executive director Pratip Kar told reporters.

Only 163 non-specified scrips were brought under rolling settlement so far, as they are not under CFS.

Simultaneously, automatic lending borrowing mechanism (ALBM) in rolling settlement would be introduced on the National Stock Exchange (NSE), in a phased manner, he said.

The representatives of the NSE, Bombay Stock Exchange (BSE), Delhi Stock Exchange (DSE) , Calcutta (CSE), Madras Stock Exchange and Ahmedabad Stock Exchange attended the meeting, he added.

 

"The idea is to ensure exchanges preparedness for CFS in rolling settlement for these products, which would be introduced as proposed by Prof J R Varma committee," Kar said.

Sebi board has approved introduction of CFS in rolling settlement in both daily and weekly maturities of one to five days and continuous net settlement (CNS) in its meeting held on June 14.

Kar said the exchanges have reiterated their seriousness about the introduction of these new products to facilitate the expansion of rolling settlement. He said that BSE and NSE have already taken steps for the introduction of the carry forward under rolling settlement and the continuous net settlement facility.

These steps include drawing up business requirements specifications, development of software and exchange and broker level back office software , Kar said.

This would facilitate the inclusion of more scrips including shares under the automatic lending and borrowing scheme under compulsory rolling settlement.

The introduction of these facilities along with the new derivative products would contribute to the liquidity and depth of the market during the transaction to rolling settlement.