Rolling Settlement: In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. At NSE, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on.

A tabular representation of the settlement cycle for rolling settlement is given below:

Settlement Cycle - Limited Physical Market Segment

Settlement for trades is done on a trade-for-trade basis and delivery obligations arise out of each trade. The settlement cycle for this segment is same as for the rolling settlement

Salient features of settlement

• Delivery of shares in street name and market delivery (clients holding physical shares purchased from the secondary market) is treated as bad delivery. The shares standing in the name of individuals/HUF only would constitute good delivery. The selling/delivering member must necessarily be the introducing member.

• Any delivery of shares which bears the last transfer date on or after the introduction of the security for trading in the LP market is construed as bad delivery.

• Any delivery in excess of 500 shares is marked as short and such deliveries are compulsorily closed-out.

• Shortages, if any, are compulsorily closed-out at 20% over the actual traded price. Unrectified bad delivery and re-bad delivery are compulsorily closed-out at 20% over the actual traded price.

• All deliveries are compulsorily be required to be attested by the introducing/ delivering member.

• The buyer must compulsorily send the securities for transfer and dematerialisation, latest within 3 months from the date of pay-out.

• Company objections arising out of such trading and settlement in this market are reported in the same manner as is currently being done for normal market segment. However securities would be accepted as valid company objection, only if the securities are lodged for transfer within 3 months from the date of pay-out.

Settlement Cycle - Institutional Segment

Deals executed in this segment are cleared on a T+2 rolling basis. Settlement for all trades is done on a trade-for-trade basis and delivery obligation arise out of each trade. Settlement of all transactions is compulsorily in demat mode only. Deals executed in this segment are not covered under the settlement guarantee extended by the Clearing Corporation.

The settlement cycle for this segment is shown below:

Trading in this market segment is available for 'institutional investors' only. In order to ensure that the overall FII limits are not violated, selling in this segment is restricted to FII clients. Buying is restricted to FII and FI clients. Members are required to enter the custodian participant code at the time of order entry and to ensure that the selling/buying restrictions are strictly adhered to.

A sale order entered by trading members on behalf of non FII clients or a buy order entered by trading members on behalf of non FII / non FI clients, shall be deemed to be invalid and any trade arising from such order shall be compulsorily closed out by the Clearing Corporation at 20 % over the actual trade price, without any further reference to the parties to the trade. The member entering the invalid order shall further be liable for disciplinary action, which may include penalties, penal action, withdrawal of trading facilities, suspension etc.

Members are not allowed the facility of trade warehousing for this segment and accordingly members are not required to mark the orders for NCIT and warehousing. If any orders are marked for the Clearing Corporation shall remove NCIT and / or warehousing the same.

Shortages, if any, are compulsorily closed-out at 20% over the actual trade price.