About Equities
NSE Clearing Ltd carries out clearing and settlement of securities traded on the capital market segment of Exchanges. The securities include equity shares, debentures, preference shares, warrants, Government Securities, Rights Entitlements, Exchange Traded Funds, listed mutual funds, etc.
A multilateral netting procedure is adopted to determine the net settlement obligations (delivery/receipt positions) of the clearing members. Accordingly, a clearing member would have either pay-in or pay-out obligations for funds and securities separately. In the case of securities in the Trade for Trade – Surveillance segment and auction trades, obligations are determined on a gross basis i.e. every trade results into a deliverable and receivable obligation of funds and securities. Members pay-in and pay-out obligations for funds and securities are determined on provisional basis by 09:00 PM on T Day and on Final basis by 09:00 AM on T + 1 day and are downloaded to them so that they can settle their obligations on the settlement day (T+1 ).
Currently all settlements are conducted on T+1 basis, T being the trade day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. The settlement schedule for all the settlement types in the manner explained above is communicated to the market participants vide circular issued during the previous month.
The important settlement types are as follows:
- Normal segment (M)
- Trade for trade Surveillance (Z)
- Auction normal (A)
- ITP for SME Series (B)
- T+0 settlement (5)