Procedure for Trading/Settlement
The procedure for buying and selling dematerialised securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of securities. In case of purchase:
account on the pay-out day.
his account and credit BO’s account. receiving credit by filling in appropriate form. However, BO can give standing instruction for credit to his account that will obviate the need of giving receipt instruction every time. In case of sale:
BO will give delivery instruction through delivery instruction slip (DIS) to DP to debit his account and credit the broker’s account. Such instruction should reach the DP’s office at least 24 hours before the payin, failing which DP will accept the instruction only at the BO’s risk.
Pledging of Securities
The procedure to pledge electronic securities is as follows:
must have BO account with the same depository. in prescribed standard form (pledge request form) with the details of the securities.
through his/her DP. and the pledgee are handled as per usual practice outside the depository system. The pledgor can change the securities offered in a pledge, provided the pledgee agrees. As to who will receive the corporate benefits on the pledged securities, it is the pledgor. The securities pledged are only blocked in the account of pledgor in favour of the pledgee.
After the repayment of loan, pledgor can request for a closure of pledge by instructing the DP in a prescribed format. The pledgee on receiving the repayment will instruct his DP accordingly for the closure of the pledge.