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

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....Sir / Madam, Sub: Discontinuation of Hand Delivery 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.&n....

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....ransactions executed on the stock exchanges will, henceforth, be settled through the Clearing Corporation/House of the stock exchanges. In order to give 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 st....

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....ional trade by the custodian after the trade has been executed, the stock exchange would consider the trade as an institutional trade only if evidence to that effect is available with or made available to the stock exchange and permit the trade to be settled through the Hand Delivery Bargain on a DVP basis, without imposing any margin. Such trades would however be subject to penalties as may be im....