What is the status of Indian Capital Markets in terms of Rolling Settlements of trades?
The Indian stock markets until recently were largely operating on Account Period basis, where transactions done during a week were netted and settled on a pre- specified date in a batch mode in the following week. The capital markets world over were settling the trades in scrips on Rolling basis as per the recommendations of Group of 30(G 30) (A group to identify the best international practices of securities clearing and settlements). Securities and Exchange Board of India (SEBI)- the market regulator in India, has gradually mandated that certain scrips would be settled exclusively on Rolling Settlement basis. This commenced in January 2000. Till June 2001, trading in a small number of scrips of small and mid cap companies had been shifted to Compulsory Rolling Settlement (CRS). However, w.e.f. July 2, 2001, SEBI mandated CRS in all large cap companies (mostly forming part of BSE- 200 Index and the scrips having a facility of deferral of the trading positions) on T+5 basis. Further, w
