Delivery of shares in street name and market delivery (clients holding physical shares purchased from the secondary market) is treated as bad delivery. The shares standing in the name of individuals/HUF only would constitute good delivery. The selling/delivering member must necessarily be the introducing member.

Any delivery of shares which bears the last transfer date on or after the introduction of the security for trading in the LP market is construed as bad delivery.

Any delivery in excess of 500 shares is marked as short and such deliveries are compulsorily closed-out.

Shortages, if any, are compulsorily closed-out at 20% over the actual traded price. Non rectification/replacement for bad delivery are closed out at at 10% over the actual trade price. Non rectification/replacement for objection cases are closed out at at 20% above the official closing price in regular Market on the auction day.

The buyer must compulsorily send the securities for transfer and dematerialisation, latest within 3 months from the date of pay-out.

Company objections arising out of such trading and settlement in this market are reported in the same manner as is currently being done for normal market segment. However securities would be accepted as valid company objection, only if the securities are lodged for transfer within 3 months from the date of pay-out.