Negotiated Trade Reporting Platform - Settlement
Settlement is on a rolling basis, i.e. there is no account period settlement. Each order has a unique settlement date specified upfront at the time of order entry and used as a matching parameter. It is mandatory for trades to be settled on the predefined settlement date. The Exchange currently allows settlement periods ranging from same day (T+0) settlement to a maximum of (T+2) for non-government securities while settlement of all outright secondary market transactions in government securities was standardized to T+1. In case of repo transactions in government securities, first leg can be settled either on T+0 basis or T+1 basis. The above guidelines came into effect from May 24, 2005. (Refer Circular no: NSE/WDM/6313)
In case of government securities, the actual settlement of funds and securities are affected directly between participants or through Reserve Bank of India (RBI). All trades in government securities are reported to RBI-SGL through the Negotiated Dealing System (NDS) of RBI, and Clearing Corporation of India Limited (CCIL) provides settlement guarantee for transactions in government securities including repos. The trades are settled on a net basis through the DvP-III system. In the DvP-III, the settlement of Securities and Funds are carried out on a net basis.
For securities other than government securities and T-bills, trades are settled on a gross basis directly between participants on delivery versus payment basis.
On the scheduled settlement date, the Exchange provides data/information to the respective member/participant regarding trades to be settled on that day with details like security, counter party and consideration.
The settlement details for non-government securities, i.e. certificate no., Cheque no., constituent etc. are reported by the member/participant to the Exchange.
The Exchange closely monitors the settlement of transactions through the reporting of settlement details by members and participants. In case of deferment of settlement or cancellation of trade, participants are required to seek prior approval from the Exchange. For any dispute arising in respect of the trades or settlement, the exchange has established arbitration mechanism for resolving the same.
Reporting of settlement details through 'NSE Extranet'
NSE dedicated a server called 'NSE Extranet' in its premises, that will store various information useful to the trading members and participants for their daily operations as well as announcements made by the Exchange from time to time. The privileged user of Trading Members and Participants can easily access this information using their NEAT trading server. Clearing data for the respective Trading Members and Participants is updated daily in the said server, for download to their local machines. This will help to reduce paper work like preparing and sending faxes to the Exchange giving settlement details.
Trading Members and Participants are required to download the clearing files daily and send the upload of settlement details regularly through Extranet only. The paths for receiving the downloaded files and for upload of files on extranet are respectively as follows.
For Download - \W\Clearing\dnld
For Upload - \W\Clearing\upld
For more information/assistance, please contact
WDM Settlement: Tel: (022) 2659 8287
NSE Help Desk: Tel : (022) 2659 8178 (10 Lines)
Extranet Team: Tel : (022) 2659 8164