A complete solution to the problem of physical holdings
Most of the retail investors in the market who do not have access to the SGL settlement facility have to hold their investment in the shape of physical certificates and settle their trades physically. This gives rise to many disadvantages like possibility for fake/forged, stolen certificates, loss of certificates, loss of interest warrants in transit. Moreover it involves extra time, effort and costs for transmission of certificates from one place to another. Further, holders of physical certificates have to settle for uncompetitive prices because of absence of settlement in de-materialised form. This happens primarily because physical security is neither fungible nor secured in nature. Time taken for transfer of ownership of security is also much longer if the securities are held in physicals as compared to the time taken for securities held in de-materialised form. With the Constituent SGL facility of the NSCCL system all these impediments will be overcome.


Reliability
As mentioned earlier, NSCCL has developed the expertise in handling disciplined and consistent settlements across the country for the equities segment of the Exchange. The NSCCL framework for settlement of Constituent SGL trades shall ensure a uniform settlement system for all constituents spread across the country. NSCCL undertaking the settlement makes this framework a very reliable one.


Ease of settlement procedures
NSCCL shall considerably reduce the burden of settlement on the Constituent. The constituent needs to just send a settlement instruction to NSCCL and the rest shall be taken care by it.


Low charges
NSCCL shall charge a nominal fee of Rs.50/- plus CCIL transaction charges for the Constituent SGL a/c services. For this purpose, de-materialisation, re-materialisation, buying, selling, bidding in primary auctions, transfer of securities from one account to another and conversion shall be treated as transactions. Apart from this, an annual maintenance charge of Rs.1000/- p.a. (to be levied pro-rata for each quarter or part thereof, if the account is not operated for full financial) is also levied.


No charges for corporate actions
NSCCL does not levy any charge for handling interest payments & redemptions. Handling of corporate action services by NSCCL on behalf of Constituent drastically reduces the burden of the Constituent