Debt Settlements

Pursuant to a trade carried out through the Automated Trading System (ATS) of the CSE, the crediting of Debt Securities to the buyer’s Client Account shall take place upon the receipt of confirmation of settlement of funds from the nominated settlement bank.

Settlement Dates

  • The first Market Day after the Trade Day (T+1) for Debt Securities transacted on the Tom Board

  • The second Market Day after the Trade Day (T+2) for Debt Securities transacted on the Spot Board

Inter-participant settlement

The CDS will issue, on each market day, a settlement schedule, which will reflect the debits and credits that have been entered into the participant’s account and the net amount to be settled by each participant on a particular settlement date.

The buyer should ensure that ‘Cleared Funds’ are made available to the buying participant by 09:00 hours on the settlement date.

The participants should ensure that sufficient cleared funds are available in the settlement bank account by 09:30 hours on the settlement date to settle payments arising out of transactions carried out by such participant based on the settlement schedule issued by the CDS.

The inter-participant settlement of funds for Debt Securities traded on the CSE shall take place by 10:30 hours on the Settlement Date, through settlement bank(s) as per the Settlement Schedules issued by the CDS.

Margin requirements applicable for transactions on Debt Securities

A margin requirement shall be computed by the CDS pursuant to trades executed on the Spot Board in respect of each Participant, taking into consideration the settlement risk arising from such transactions carried out by the Participant pending inter participant settlement.

Such margin requirement will be communicated by the CDS to the Participant end of the applicable Trade Day.

The margin requirement will be computed in accordance with a methodology determined by the Board of Directors from time to time.

The margin requirement will be applicable for a Participant in the event the aggregate value of the purchases executed by such participant on the Spot Board on a given market day equals or exceeds Rupees ten (10) Million.

Margin requirement will not be computed for trades executed on the Tom Board.