Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to Normal Rolling Settlement
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Dematerialisation compliance enables shift from trade-for-trade to rolling settlement when depository connectivity and other conditions met. Stock exchanges may shift securities from TFTS to normal Rolling Settlement where companies have dual depository connectivity and meet two conditions: at least 50% of other than promoter holdings are dematerialized certified by the Registrar and Transfer Agent (or, if no separate RTA exists, by a practicing Company Secretary or Chartered Accountant), and there are no other grounds for continuation of TFTS; exchanges must report actions in Monthly/Quarterly Development Reports.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Dematerialisation compliance enables shift from trade-for-trade to rolling settlement when depository connectivity and other conditions met.
Stock exchanges may shift securities from TFTS to normal Rolling Settlement where companies have dual depository connectivity and meet two conditions: at least 50% of other than promoter holdings are dematerialized certified by the Registrar and Transfer Agent (or, if no separate RTA exists, by a practicing Company Secretary or Chartered Accountant), and there are no other grounds for continuation of TFTS; exchanges must report actions in Monthly/Quarterly Development Reports.
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