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SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMD/POLICY CIR-1/98
January 12, 1998

The President/Executive Directors/
Managing Director of all Stock Exchanges

Dear Sir,

Sub. : Introduction of Rolling Settlement in the Stock Exchanges and Trading by  Institutional Investors in the Demat Segment

In view of the availability of facilities like Depository Systems and Stock Lending Schemes, it has been decided to introduce Rolling Settlement on T+5 basis in the Demat segment of the Stock Exchanges for all companies with effect from January 15, 1998.

It has also been decided that settlement of trades in the depository would be compulsory from January 15, 1998 for the institutional investors, viz., domestic financial institutions, banks, mutual funds and foreign institutional investors having a minimum portfolio of securities of Rs.10 crores as on the latest balance sheet date. SEBI would specify from time to time, the list of such securities for which settlement of trade through the depository would be compulsory for the institutional investors. For the present, the following securities have been specified for compulsory trading in Demat Segment by the institutional investors:

1. Bank of India

2. Indian Petro Chemicals Limited (IPCL)

3. Industrial Credit & Investment Corporation of India Limited (ICICI)

4. Industrial Development Bank of India (IDBI)

5. Larsen & Toubro Limited (L&T)

6. Reliance Industries Limited (RIL)

7. State Bank of India (SBI)

8. The Tata Iron & Steel Company Limited (TISCO)

It may be noted that these Institutional Investors may purchase the securities in the physical segment subject to the securities being dematerialised immediately.

Yours faithfully,

O. P. GAHROTRA
SR. EXECUTIVE DIRECTOR

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