Clearing & Settlement

This has reference to circular no. NSE/CMTR/21587 dated August 31, 2012 for the launch of SME platform on Capital Market segment of the Exchange. Members are requested to note that the clearing & settlement provisions applicable in the Capital Market segment shall apply mutatis mutandis to the clearing & settlement of SME securities.

However, members are requested to note the following for clearing & settlement of SME securities:

• All the clearing members in CM segment shall be active for SME settlement.
• All SME securities shall be classified under Group 3 and VAR margins shall be computed as applicable to Group 3 securities.
• The OTR allocations for INST trades shall be done in applicable market lot only.
• Early pay-in of securities shall be done in applicable market lot only.
• The delivery for securities pay-in shall be done in applicable market lot only. However the market lot of securities shall vary from time to time depending on the market price of the security. In such cases the delivery shall be accepted only in terms of applicable market lot and its whole number multiples in which the security was traded. Anything in excess or short of the market lot shall be rejected and returned to the member.

In case of market lot changes, security shortages shall be directly closed out and auction shall not be conducted.