SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMDRP/ /1999
To,
Presidents/Executive Directors/ Managing Directors of all Stock Exchanges and NSCCL
Dear Sir,
Sub: Connectivity of clearing house / corporation with all the depositories under Depositories Act, 1996.
After the enactment of the Depositories Act, 1996, SEBI has been notifying from time to time the specified securities in which trading and settlement has to mandatorily take place in dematerialized form only.
In view of the increase in volumes in dematerialized trading on account of the increase in number of scrips to be compulsorily traded in dematerialized form and increase in investor preference for dematerialization, it is now felt necessary that the clearing houses / corporations of all the stock exchanges should be connected to all the depositories for effective and prompt clearance and settlement of the trade in dematerialized securities.
Under Regulation 31 of SEBI (Depositories and Participants) Regulations, 1996, every depository is required to maintain continuous electronic means of communication with clearing houses and clearing corporations of the stock exchanges. This is necessary for the effective, prompt and accurate clearance and settlement of trade in dematerialized securities.
You are, therefore, required to establish connectivity of your clearing house / clearing corporation with all the depositories registered with SEBI in the form of continuous electronic means of communication to enable speedy and smooth settlement of transactions in dematerialized securities.
Yours faithfully,
M. D. PATEL
EXECUTIVE DIRECTOR
SMDRP DEPARTMENT
