SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
All Stock Exchanges/Depositories/Custodians and AMFI/RAIN
Trading and settlement of trades in dematerialized securities
Please refer to our earlier circular no. SMDRP/Policy/Cir-49/2000 dated October 16, 2000 advising that there should be a time gap of three months between the date for establishing connectivity by the companies with both the depositories and the date of commencement of compulsory dematerialized trading. It was further advised that the date announced for compulsory dematerialized trading for the scrips as per SEBI circular no. SMDRP/POLICY/Cir-23/2000 dated May 29, 2000 would henceforth be treated as the date by which the company should establish connectivity with both the depositories. The compulsory dematerialized trading in these companies will commence after three month from that date. It was also mentioned in the circular that the companies which fail to establish connectivity with both the depositories on the scheduled date would be traded only on the ‘trade for trade’ settlement window of the exchanges from the following settlement period.
In accordance with the aforementioned circulars dated May 29, 2000 and October 16, 2000, out of the 202 scrips required to establish connectivity with both the depositories by October 30, 2000, 44 companies have now established connectivity. These 44 scrips (Serial No. 1 to 44 of annexure ‘A’) would be traded compulsorily in dematerialized form by all investors with effect from January 29, 2001. The 158 scrips (Serial No. 45 to 202 of annexure ‘A’) which have not established connectivity would be traded only on “trade for trade” segment of the stock exchanges, from the settlement period commencing on or immediately after November 13, 2000.
Further, the scrips of companies which has been or is being shifted to the ‘trade for trade’ window of the stock exchanges would be reverted back to the normal trading segment from the next cut off date after the depositories confirm to SEBI that the companies have established connectivity.
Currently scrips of 140 companies have been included for trading only on ‘trade for trade’ settlement window of the exchanges. Out of these, 16 companies (Serial Nos. 203 to 218 of annexure ‘A’) have established connectivity with both the depositories. Their scrips shall be traded on the normal trading segment where deliveries can be made either in physical or dematerialised form with effect from November 27, 2000 and compulsorily in dematerialized form 3 months after that date i.e. from February 26, 2001.
P. K. KURIACHEN