Sebi going ahead with rolling settlement

The clarification gains importance as in the past several rumours of diverse nature have been circulating in the market about the rolling settlement.

Sebi said that it is committed to the introduction of rolling settlement and increasing the number of scrips in the rolling settlement in a phased manner.

Compulsory rolling settlement has already been introduced by Sebi for 163 scrips which are in the compulsory dematerialised settlement. Before further expansion of the list of scrips for compulsory rolling settlement including the A group scrips, it would be necessary to introduce the facilities of continuous net settlement CNS and daily and weekly modified carry forward system and Automated Lending and Borrowing Mechanism ALBM.

The statement further said Sebi is in touch with the various stock exchanges and they had informed the markets regulator that the necessary software changes required for the introduction of the above mentioned facilities would be in place by November 2000.

Sebi has, in the meanwhile, advised all the stock exchanges through a circular about the parameters for the introduction of these facilities. The risk containment measures for these facilities are also being finalised by the risk management group in consultation with the stock exchanges and other market participants.