SEBI prescribes guidelines for trading on holidays

MUMBAI: In an effort to ensure smooth completion of settlement for trading on holidays, SEBI has asked the exchanges to complete pay-in and the pay-out for the first settlement before the commencement of process for the subsequent settlements.
The cash-securities pay out from the first settlement should be made available to the broking entities for meeting his pay-in obligations for the subsequent settlements, SEBI said in a communication to the stock exchanges and depositories on Wednesday.
These guidelines are based on the recommendations of the advisory committee on derivatives and market risk management and have been finalised in consultation with the exchanges and the depositories.
The depositories should facilitate the inter-depository transfers within one hour and before pay-in for the subsequent settlement begins to help broking members to meet obligations, it added.
The stock exchanges and depositories should follow a strict time schedule to ensure that the settlements are completed on the same day.
The stock brokers and clearing members should transfer the securities from their respective pool account to the clients beneficiary account within one working day after the pay-out day, it said.
The securities lying in the pool account beyond the stipulated one day would attract a penalty at the rate of six basis point per week on the value of securities, SEBI said.