Central Securities Depositories
National Securities Depository Limited (NSDL)
Reserve Bank of India (RBI)
T+2 for Equities
T+N for Bonds
The National Securities Clearing Corporation Ltd. (NSCCL) carries out clearing and settlement functions. NSCCL has two Côtegories of clearing members: trading clearing members and custodians. Trading members' proprietary trades become the member's obligation for settlement. Where trading on behalf of clients, and a custodian is involved, the member flags the trade with a Custodian Participant (CP) code. The custodian is required to confirm settlement of these trades on T+1 day by a 13:00 cut-off time. Non-confirmation by the custodian devolves the trade obligation on the member who had input the trade for the respective client. Trades in the normal settlement segment are subject to a multilateral netting procedure, under which the clearing member has a net settlement obligation (delivery/receipt of securities and cash). In the case of securities in the Trade for Trade – Surveillance segment and Auction Trades, obligations are determined on a gross basis for both funds and securities.
Key terms defined in our glossary:
Central Securities Depository
BIS Model 1
The above information is written as a general guide only and is subject to change. Please refer to our 'Terms' page for more details.