Revision of Activity Schedule of Auction Session
Summary
This SEBI circular revises the activity schedule for auction sessions in the Equity Cash segment to reduce settlement time following a selling broker's default. It grants flexibility to Clearing Corporations to conduct auction settlement on or before T+3 days, while maintaining the pay-in/pay-out deadline at T+3. The document mandates that Stock Exchanges and Clearing Corporations implement necessary systems, amend bye-laws, and report implementation status to SEBI.
Text
In case of default by the selling broker in a normal settlement, the security delivered short is bought in the auction session (conducted on T+2 day) and is delivered to the buying broker on T+3 day.
It has been decided to provide flexibility to Clearing Corporations to decide the time for conducting the settlement of Auction session on or before T+3 day.
Auction session: By T+2; Pay-in/pay-out of auction and close-out: By T+3.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956.
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 members and also disseminate the same on their website.
Intimate SEBI the status of implementation of the provisions of this circular.
Source: SecMarx — Revision of Activity Schedule of Auction Session. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.