Securities Settlement Procedure for Futures on 10 year GOI Security


1. Securities Settlement Procedure through NSDL / CDSL

The final obligation for securities pay-in is downloaded to the members on the T day by 8 p.m. where T is the day of intent. The members are required to make available the required securities in the settlement pool accounts with the depository participants on the pay-in day by the depository cut-off timings. To facilitate this members are required to maintain settlement pool accounts with depository participants of both the depositories, NSDL and CDSL.

A facility has been provided to members wherein they would not be required to execute Delivery-out (DO) instructions at NSDL for providing securities towards pay-in in for a specific settlement type and number. Members may request for the facility vide letter in specified format.

The pay-in of securities is accepted for a full face value of Rs.200000 and multiples thereof. Pay-in to the extent not in multiples of Rs.200000 face value shall not be accepted and treated as shortage.

Subsequent to receipt of pay-in instructions from the depositories, NSCCL determines the shortages after which pay-out files are generated and released to the depositories by 1.30 p.m.

Clearing members are provided the facility to provide early pay-in of securities (EPI) through either of the depositories NSDL or CDSL on the same lines as being done in the Capital Market segment.
 

2. Securities Settlement Procedure through SGL / CSGL

In addition to the delivery settlement through depositories (NSDL and CDSL), clearing members holding Government Securities in SGL/CSGL account can settle IRF contracts through their SGL/CSGL account also . The procedure for delivery settlement through the SGL/CSGL account shall be as under.

• Clearing members who desire to settle IRF contracts through SGL/CSGL account shall intimate the details of their SGL/CSGL account to NSCCL as per format specified in  Annexure 1.
  
  

• The delivering clearing member shall initiate the transfer of Government Securities due for delivery on the settlement day in the settlement SGL account of NSCCL through the facility provided by NDS-PDO.





• Clearing members shall enter the transaction through its custodian/bank on NDS under the menu “Settlement” head “IRF Settlement” and sub-head “IRF Settlement Entry”.





• On selection of “IRF Settlement Entry” the counter party shall be selected as National Securities Clearing Corporation Limited.





• NSCCL shall confirm each such transfer after which the government securities shall move into NSCCL settlement SGL account and shall be considered as received towards pay-in.





• Clearing members shall ensure that the transfer of government securities to NSCCL settlement SGL account is completed by the pay-in time specified by NSCCL from time to time. The pay-in cut off time for delivery settlement of IRF contracts shall be 11:00 am.





• In respect of pay-out NSCCL shall transfer the government securities to SGL/CSGL account of the receiving clearing members if such clearing member has opted for settlement through SGL/CSGL account.





• The transfer for pay-out shall be initiated by NSCCL on NDS under the menu “Settlement” head “IRF Settlement” and sub-head “IRF Settlement Entry”. The Clearing members shall ensure that such transactions are accepted by their custodian/Banks for receipt of government securities in their accounts.








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