Members shall seek prior approval of the Clearing Corporation to grant extension of the settlement date, if due to unavoidable circumstances they would be not able to settle the trades by the settlement date. The relevant authority may, if satisfied that such circumstances exist in its absolute discretion, approve any such extension of settlement date.

Where a member fails to obtain prior approval from Clearing Corporation for extension of the settlement date of the TT trades, a processing fee of Rs. 500 /- per trade per day subject to maximum of 2.50 times the value of the trade for each side with a ceiling Rs. 10000/- shall be levied for late settlement of a trade.

Where a member establishes to the satisfaction of the relevant authority that the failure to settle is on account of non-payment of funds or non-delivery of securities by the counter-party member and that he has fulfilled his part of obligation in full and in time, the relevant authority in such cases may not impose the penal charges on such a member.