Central counterparty settlement required for exchange trades, with narrow exceptions and custodial-rejection rules permitting DVP. Discontinuation of Hand Delivery Bargains/DVP is mandated: all exchange trades must be settled through the Clearing Corporation/Clearing House as central counterparty, effective September 19, 2005. Narrow exceptions are permitted for total exchange/STP connectivity failures, pre-decided international holidays, and calamity-driven centre closures. Custodial rejection of institutional trades may allow DVP settlement without margin if documented; otherwise exchanges may impose margins and penalties. Exchanges must amend bye-laws, notify members, publish the circular, and report implementation to SEBI.
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Provisions expressly mentioned in the judgment/order text.
Central counterparty settlement required for exchange trades, with narrow exceptions and custodial-rejection rules permitting DVP.
Discontinuation of Hand Delivery Bargains/DVP is mandated: all exchange trades must be settled through the Clearing Corporation/Clearing House as central counterparty, effective September 19, 2005. Narrow exceptions are permitted for total exchange/STP connectivity failures, pre-decided international holidays, and calamity-driven centre closures. Custodial rejection of institutional trades may allow DVP settlement without margin if documented; otherwise exchanges may impose margins and penalties. Exchanges must amend bye-laws, notify members, publish the circular, and report implementation to SEBI.
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