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December 20, 2001

To all the stock exchanges

SUB : Rolling Settlement w.e.f December 31, 2001.

Please refer to our circular nos. SMDRP/Policy/Cir-23/01 dated March 20, 2001, and SMDRP/Policy/Cir-33 /01 dated June 21, 2001 regarding the implementation of rolling settlement at all exchanges on T+5 basis in all scrips. Compulsory Rolling Settlement on T+5 basis has been introduced for 414 scrips since July 02, 2001 on all exchanges. As earlier advised by SEBI the remaining scrips were to be traded in the T+5 rolling settlement w.e.f January 02, 2002.

The Stock Exchange, Mumbai, has represented to SEBI that the migration of such a large number of scrips from the weekly settlement in the middle of the week on January 01, 2002, after close of normal trading hours and computation of margins, etc. and shifting them to rolling settlement w.e.f January 02, 2002, would pose problems because of insufficient time. They have represented that smooth migration of trading and settlement in such a large number of scrips from weekly settlement environment to rolling settlement is a huge exercise and would require at least 24 hours to complete the exercise. The Exchange has requested that the rolling settlement may be pre-poned to Monday, December 31, 2001, which is the beginning of the week, which would allow them 2 days i.e Saturday and Sunday to do the migration and sort out the technical problems if any.

The issue was discussed with the other exchanges i.e NSE, CSE, DSE, ASE and the UPSE. They have stated that there would not be any problem if the rolling settlement in the remaining scrips were to commence from Monday, December 31, 2001 uniformly across exchanges.

It was decided on the request of BSE and pursuant to discussions with the above mentioned stock exchanges, in the interest of uniformity and in order to ensure the smooth migration of the remaining scrips from the account period settlement to the rolling settlement the date of the commencement of rolling settlement in these scrips be pre-poned to the beginning of the week i.e Monday, December 31, 2001.

Yours faithfully,

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