Discontinuation of Hand Delivery Bargains/Delivery Versus Payment (DVP)

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....Bargains/Delivery Versus Payment (DVP) 1. It has been observed that some of the institutional investors are still relying on Hand Delivery Bargains/Delivery Versus Payment (DVP) for settlement of some of their transactions. These Hand Delivery Bargains/DVP are essentially bilateral settlement mechanisms. 2. Since the stock exchanges have been acting as central counter party and providing trade/s....

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....ve the institutional investors, custodians and other market participants some time to change over to this practice, the above will come into effect from September 19, 2005. 4. It has been represented to SEBI by the stock exchanges and the custodians that it might be necessary to retain Hand Delivery Bargains/DVP under very exceptional circumstances. Accordingly, the following are exceptional circ....

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....d Delivery Bargain on a DVP basis, without imposing any margin. Such trades would however be subject to penalties as may be imposed by the stock exchanges. b. In case evidence as above is not available with the stock exchange, the stock exchange, while allowing the trade to be settled through Hand Delivery Bargain on a DVP basis will however impose both margin and penalties. 6. The stock exchan....