DSE moves toward rolling settlement

Under rolling settlement, a buyer or seller of securities will have to settle the trade within a specified period of time instead of settling on a weekly basis. This would mean that buyers and sellers will have to settle the trade on the third day of transaction in DSE.

Aggarwal said that the exchange would initially start rolling settlement in scrips listed for trading mandatory in depository (DEMAT) mode.

Currently, 70 scrips are mandatorily listed on Demat mode and 34 more would be added from May 31, taking the total scrips to 104. DSE is the first exchange in the country to move towards rolling settlement.

He saidexchange officials were working out the various modalities for moving towards rolling settlement and once they are ready, trading would start.

Aggarwal also said the exchange has been successful in improving trading in non-liquid scrips through its market specialist scheme. He said the scheme which started from first week of this month has already provided liquidity in 15-20 scrips and turnover in these scrips has already touch few lakh rupees.

Under the market specialist scheme, member of the exchange gives two way quotes, i.e, buy and sell in order to provide liquidity. The member of this scheme would get the incentive of 0.01 per cent on the deal from the buying and selling.

Aggarwal also said that DSE has moved from V-SAT to ISDN (international subscriber dialling network) lines for its on-line trading. "Trading through ISDN lines will help members in speedy execution of orders in a more cost-effective manner," he said.

On trading in depository, he said DSE is ready for joining the seconddepository, Central Depository Services Ltd (CSDL) promoted by BSE. Currently DSE has joined the only depository in the country, National Depository Services Ltd (NSDL).