Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement
Summary
The circular identifies companies that established connectivity with both NSDL and CDSL during December 2010 and January 2011. It instructs stock exchanges to consider shifting these securities from Trade for Trade Settlement to normal Rolling Settlement subject to specific conditions. Stock exchanges are required to report the action taken regarding this shift in their Monthly or Quarterly Development Reports.
Text
It is observed from the information provided by the depositories that the companies listed in Annexure ‘A’ have established connectivity with both the depositories during the month of December 2010 and January 2011.
The stock exchanges may consider shifting the trading in these securities to normal Rolling Settlement subject to the following:
At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s.
There are no other grounds/reasons for continuation of the trading in TFTS.
The Stock Exchanges are advised to report to SEBI, the action taken in this regard in the Monthly/Quarterly Development Report.
Source: SecMarx — Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.