Securities Settlement

The final obligation for securities pay-in is downloaded to the members and custodians on the T+1 day. The members / custodians make available the required securities in the settlement pool accounts with the depository participants on the pay-in day by 10.30 a. m. To facilitate this members are required to open pool accounts with depository participants of both the depositories, NSDL and CDSL.

Contact Details of Depositories

Subsequent to receipt of pay-in instructions from the depositories, NSE Clearing determines the shortages after which pay-out files are generated and released to the depositories by 1.30 p.m. Members have a facility of direct delivery of securities to the investors accounts wherein payout receivable by members can be directly credit to the beneficial owners's accounts as instructed by them.

In addition to the direct delivery of securities to the client account, Members also have a facility to receive their payout in their preferred depository.

Direct delivery of securities to the investors accounts

Members may provide NSE Clearing instructions for pay-out directly to the client beneficiary account and not to the members settlement pool account. Members are required to provide information regarding their client beneficiary accounts on T+ 1  day by 9:30 a.m.. Based on the information received from members, the Clearing Corporation sends payout instructions to the depositories, so that the client receives the pay out of securities directly to their accounts on the pay-out day. The client receives payout to the extent of instructions received from the respective clearing members. To the extent of instruction not received, the securities are credited to the CM pool account of the member.

• Clearing members are required to provide a file to NSE Clearing for effecting pay out to investors' accounts for a particular settlement type, settlement number and delivery type. The file is to be provided as per the structure specified by NSE Clearing.

Securities Payout to Members Preferred Depository

Members have a facility of preferred depository wherein payout receivable by members can be credited to the specified pool account in either of the depositories viz. NSDL or CDSL.

Members are requested to take note of the following:

• The securities payout shall be after giving effect to any client direct payout instructions which may have been provided by clearing members for the respective security for the respective settlement. In the event of a failure of a client payout instruction at the depository, the payout shall be effected to the respective depository pool account.
• Members shall ensure that they get their account details updated in case of shifting /change of account etc to ensure that the payout happens to the preferred depository pool account.
• Members may avail the said facility by providing details in the form of a letter as enclosed in Annexure I along with the client master report of the respective depository pool account. Also, the same letter has to be provided in case of closure of the said preferred depository pool account along with the client master report of the respective depository pool account.
• Members may take note that they shall continue to maintain pool accounts in both the depositories viz NSDL and CDSL.
  
  
  Reporting of details of securities Pay-in / Pay-out shortages by Members
• Members are required to upload files in the specified format with respect to details of securities pay-in / pay-out shortages. The file is to be uploaded only in case of securities Pay-in / Pay-out shortages (including internal shortages). The files in the specified format shall be uploaded by the members to the clearing corporation till S+5 working day basis, where 'S' is the settlement date for the respective settlement. For every valid file uploaded by member, return file shall be generated with the indication of the success/rejection of the file and the records. This shall be purely a validation of the correctness of the file format. In case members intend to modify the data in a file, which has been already submitted to Clearing Corporation, the member would be having an opportunity to submit the revised file after carrying out the modifications before the cut off date. Members will have to submit all the files in a running sequence of batch numbers across segments. If members fail to submit an earlier batch file then the subsequent batches will not be processed. However, if the earlier file was completely rejected, the same batch number should be used for the subsequent corrected file. At times, the files are not successfully uploaded due to certain technical/manual errors. Each of such rejected file/ rejected record has the error code appended to the control/detail record.

     Error code and their meaning

• Facility for Voluntary Auction for Internal Shortages

Clearing Corporation shall provide facility where its clearing member may choose to include their internal shortages in the auction conducted by the Clearing Corporation.

Auction shall be in respect of internal shortages in capital market segment, physical settlement of equity derivatives. Clearing members shall provide a list of securities to be auctioned along with trading member and shortage quantity to Clearing Corporation through a file upload. The file format for the same has been specified in consolidated circular issued by NCL from time to time. The file should be uploaded prior to 09:30 AM on settlement date.

Clearing Corporation shall validate the records and provide a return file with status success/reject to the Clearing Members. The file format for the same has been specified in consolidated circular issue by NCL time to time . Only successful records shall be taken up for further processing. Clearing Corporation shall debit from the settlement account an amount equal to the valuation of the securities provided towards auction. Clearing Members are required to provide valuation amount in their settlement account by 10:00 AM. In case of successful auction, valuation amount so collected shall be utilised towards auction pay-in on auction settlement day. Excess, if any, shall be returned to clearing member after making necessary adjustments and shortfall, if any, shall be recovered from the clearing member. In case of unsuccessful auction, the entire valuation amount shall be returned to the clearing member on next day. In case where auction is successful but there is settlement shortage i.e. auction seller fails to deliver the securities on T+2 day, Clearing Corporation shall conduct financial close out in accordance with the extant procedures. It shall be sole responsibility of the Clearing Member to ensure correctness and completeness of the settlement shortages reported to Clearing Corporation for auction. Further this is only a facility and no settlement guarantee shall be provided. There shall be a facilitation fees of 1% on the value of security considering the price of security on day prior to auction. The amount including applicable taxes shall be collected on monthly basis.