Settlement for the equity shares traded in all the Boards will occur on the third market day after the trade date (T+3).
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.
In the event the aggregate value of all the purchases executed by any participant (other than the custodian Banks) on behalf of a particular client in relation to a particular security during a particular market day equals or exceeds Rs. 20 Mn., such participant shall provide a minimum margin of 15% of the aggregate value of the securities so purchased in the form of ‘cleared funds’ to the CDS or a bank guarantee in favor of the CDS, by 09.00 hours on Trade Day +1 (T +1).
The CDS shall issue schedules containing the margins payable by Member Firm participants at the end of each market day.
Participants are required to deposit such margins into their settlement account in their settlement Bank. Alternatively, Participants may furnish a bank guarantee, in a format acceptable to the CDS, obtained by the Account Holder in favor of the CDS.
The CDS would credit the settlement account of the member Firm Participant on T+3 with the margin amount paid on Trade day.
In the event a trade is not affirmed by a Custodian Bank, the Participant shall be required to submit the margin by 09.00 hours on T+2.
The CDS at the end of every market day will initiate a trade confirmation identifying the CDS account holder and the Participant Custodian Bank. The trade has to be affirmed by the relevant custodian bank by using CDS Form 22 by the Participant Custodian Bank by 14:.30 hours on Trade Day plus 1 (T+1.)
Custodian banks have the right to reject any transaction executed for any of their clients by a Member Firm of the CSE provided such a rejection of a trade is notified to the CDS by 14.30 on T + 1.For this purpose Custodian Banks are required to submit CDS Form 23 to the CDS.
The CDS will on receipt of the rejection shall instruct the Member Firm to buy back shares in the event of a sale or meet the settlement obligation in the event of a purchase. New settlement schedules would be generated to the custodian bank, the relevant member firm and the settlement bank.
Trade Affirmation: Duly completed CDS Form 22 to be submitted by relevant Custodian Bank
Trade Rejection: Duly completed CDS Form 23 to be submitted by relevant Custodian Banks