Activity schedule for Auction Session
Summary
SEBI mandates that auction sessions for defaulting selling brokers be conducted on the same day as settlement (T+2) to reduce delivery time. The circular specifies distinct activity schedules for rolling settlements and scenarios involving multiple settlements on bank/stock exchange holidays. Stock Exchanges are required to implement necessary systems, amend bye-laws, and disseminate these provisions to stock brokers.
Text
auction for trades done on T day shall be conducted on T+2 day after pay-in is completed and shortfall is crystallized
Trade Day is T; Pay-in/Pay-out of securities and funds is T+2
Auction session is T+2; Pay-in/pay-out and close-out of auction is T+3
The auction of first settlement (S1) shall be conducted on the same day (Tm) and settled the next day (Tm+1)
The auction for the second settlement (S2) shall be conducted on the next day (Tm+1) along with the shortages/auction of that day. The settlement of the same shall happen on the subsequent day (Tm+2)
put in place the adequate systems and issue the necessary guidelines for implementing the above decision
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above
bring the provisions of this circular to the notice of the stock brokers and also disseminate the same on their website
issued in exercise of powers conferred under Section 11(1) of Securities and Exchange Board of India Act, 1992
Source: SecMarx — Activity schedule for Auction Session. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.