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 requirement: securities may shift from trade-for-trade to rolling settlement when non-promoter holdings are dematerialised. Shifting securities from Trade-for-Trade Settlement to Rolling Settlement is allowed once a company connected to both depositories demonstrates that at least 50% of other-than-promoter holdings are dematerialised via a certificate from its RTA or, if no RTA exists, from a practicing Company Secretary or Chartered Accountant; exchanges must also confirm absence of other grounds for continuation of TFTS and report the action in their development reports to the regulator.
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 requirement: securities may shift from trade-for-trade to rolling settlement when non-promoter holdings are dematerialised.
Shifting securities from Trade-for-Trade Settlement to Rolling Settlement is allowed once a company connected to both depositories demonstrates that at least 50% of other-than-promoter holdings are dematerialised via a certificate from its RTA or, if no RTA exists, from a practicing Company Secretary or Chartered Accountant; exchanges must also confirm absence of other grounds for continuation of TFTS and report the action in their development reports to the regulator.
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