DEPUTY GENERAL MANAGER
DEPOSITORIES AND CUSTODIAL DIVISION
All Custodians of Securities
Depositories and Custodial Division — Circular No. 20
Sub: Calendar for the implementation of T+2 rolling settlement w. e. f. April 1, 2003
It has been decided to shorten the settlement cycle from the existing T+3 rolling settlement to T+2 rolling settlement w. e. f. April 1, 2003. After detailed deliberations with various market participants, a time schedule for the implementation of T+2 rolling settlement from April 1, 2003 was prescribed by SEBI on January 3, 2003. A summary of the time schedule is as follows:
|Sr. No.||Day||Time||Description of activity|
|2||T+1||By 11:00 a.m.||Confirmation of all trades (including custodial trades). Facility of an exceptional window for late confirmations would be made available by the exchanges.|
|By 1:30 p.m.||Processing and downloading of obligation files to brokers / custodians|
|3||T+2||By 11:00 a.m.||Pay-in of securities and funds|
|By 1:30 p.m.||Pay-out of securities and funds|
The Custodians shall adhere to the following activities for implementation of T+2 rolling settlement w.e.f. April 1, 2003:
1.Confirmation of the institutional trades by the custodians latest by 11.00 a.m. on T+1. An exception window would be provided by the exchanges for late confirmations for an additional fee but in any case the confirmation should be made before 1:00 p.m. on T+1.
2.The Custodians shall issue instructions in the physical form upto 4 p.m. and in electronic form upto 6 p.m. on T+1 to the DPs for pay-in of securities.
3.Pay-in to be made before 10:30 a.m. on T+2.