De-materialisation
 Settlement
 Re-materialisation
 Corporate Actions Handing



 De-materialisation

De-materialisation is the process of converting the physical certificates of an investor into the electronic book entry format held by the RBI. At the time of de-materialisation the physicals are lodged with the RBI for cancellation of the certificates and credit to the respective SGL accounts. The investor will have to submit the certificates to NSCCL who in turn will submit them to RBI. When RBI credits the securities in NSCCL SGL a/c, NSCCL will in turn credit the investor’s Constituent SGL a/c. Currently de-materialisation of physicals generally takes about 3 weeks.

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 Settlement

When the Constituent buys/sells securities, it has to inform the details of the trade to NSCCL prior to the settlement day by way of a written communication. On the settlement date, NSCCL shall check for the requisite funds/securities. If the balances are adequate, NSCCL shall effect settlement through its SGL account with the RBI and credit the funds/securities accounts of the constituent(s) on the close of the settlement day. Buyer constituent of NSCCL would get the security credit on the day of the settlement. Seller constituent of NSCCL would be given pay-out remittances on the settlement day itself if the counter-party is also an NSCCL constituent and next day if the counter-party is an RBI SGL account holder.

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 Re-materialisation

Re-materialisation is the process of converting the electronic balances of an investor’s securities into physical certificates. At the time of re-materialisation an application is lodged with the RBI who debits the SGL balances and issues physical certificates in its place.

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 Corporate Actions Handling

Apart from holding securities on behalf of its Constituents and settling their buy/sell transactions, NSCCL shall also handle various corporate actions as detailed below:

• Interest Payments:
  NSCCL shall collect and distribute the interest received from the RBI on behalf of its Constituents. For this purpose, NSCCL shall on the eve of the book closure of the security, prepare a list of Constituents and submit the same to RBI. On receipt of the interest, NSCCL shall remit the same to the Constituents.



• Redemptions:
  NSCCL shall collect and distribute the redemption proceeds on behalf of its Constituents as detailed above for interest payments.



• Conversions:
  When RBI gives an option of conversion of securities, NSCCL shall collect the requests from the Constituents and forward the same to RBI. On RBI crediting the security to NSCCL SGL a/c, the Constituent a/c will be credited with the new security and the old security will be debited from the Constituent a/c.



• Primary Auctions:
  If the Constituent desires to participate in the Primary auction, NSCCL will collect the bids on behalf of the Constituents and forward the same to RBI subject to availability of clear funds. Once RBI accepts the bids and allots the securities, NSCCL shall confirm the acceptance of the bid and credit of securities to the constituent.



• Open Market Operations:
  RBI undertakes open market operations wherein it buy/sells government securities at prices announced by it from time to time. NSCCL offers to settle such transactions on behalf of its constituents in SGL form directly with RBI.