Trading and settlement in

BSE and NSE

Presented By:
Group-: A1
Ankur Thakur
Anuj Shrivastava
Subham Kashyap Maharshi
Trading (1/3)
• Timing-
• Trading on the BOLT System is conducted from Monday to Friday between
9:55 a.m. and 3:30 p.m. normally.

• Groups-
• The scrips traded have been classified into various groups.
• BSE has, for the guidance and benefit of the investors, classified the scrips in
the Equity Segment into 'A', 'B', 'T' and 'Z' groups on certain qualitative and
quantitative parameters.

 "F" Group represents the Fixed Income Securities.

 "T" Group represents scrips which are settled on a trade-to-trade basis
as a surveillance measure.
 "G" group represents the trading in Government Securities by the retail
investors
 “Z" group was introduced by BSE in July 1999 and includes companies
which have failed to comply with its listing requirements .
Trading (2/3)
• Listed Securities-
• The securities of companies, which have signed the Listing Agreement with BSE, are
traded as "Listed Securities“.

• Permitted Securities-
• To facilitate the market participants to trade in securities of such companies, which are
actively traded at other stock exchanges but are not listed on BSE, trading in such
securities is facilitated as " Permitted Securities" provided they meet the relevant
norms specified by BSE

• Tick Size-
• Tick size is the minimum difference in rates between two orders on the same side i.e.,
buy or sell, entered in the system for particular scrip.
• Trading in scrips listed on BSE is done with the tick size of 5 paise
Trading (3/3)
• Computation Of Closing Price Of Scrips-
• The closing price of scrips is computed on the basis of weighted average price of all
trades executed during the last 30 minutes of a continuous trading session
• However, if there is no trade recorded during the last 30 minutes, then the last traded
price of scrip in the continuous trading session is taken as the official closing price.

• Basket trading system-

• Provides an opportunity to take advantage of price differences in the underlying
Sensex and Futures on the Sensex by simultaneous buying and selling of baskets
comprising the Sensex scrips in the Cash Segment and Sensex Futures.
• Provides a balancing impact on the prices in both cash and futures markets.
• The Basket Trading System meets the need of investors and also improves the depth in
cash and futures markets.
 Settlement ( 1/4)
• Compulsory Rolling Settlement-
• All transactions in all groups of securities in the Equity segment and Fixed Income
securities listed on BSE are required to be settled on T+2 basis
• A T+2 settlement cycle means that the final settlement of transactions done on trade
day between the buyers and sellers respectively takes place on second business day
after the trade day. (excluding Saturdays, Sundays, bank and Exchange trading holidays)
• The settlement calendar, which indicates the dates of the various settlement related
activities, is drawn by BSE in advance and is circulated among the market participants.
• Trades done on a particular day are settled after a given number of business days.
• Transactions in securities of companies, which are in "Z" group or have been placed
under "trade-to-trade" by BSE as a surveillance measure ("T" group) , are settled only
on a gross basis and the facility of netting of buy and sell transactions in such scrips is
not available.
• The transactions in 'F' group securities representing "Fixed Income Securities" and " G"
group representing Government Securities for retail investors are also settled at BSE on
T+2 basis.
Settlement (2/4)
• Pay-in and Pay-out for 'A', 'B', 'T', 'C', "F", "G" & 'Z' Group of Securities-
• The trades done by the Members in all securities in CRS are now settled on BSE by
payment of monies and delivery of securities on T+2 basis. All deliveries of securities
are required to be routed through the Clearing House.
• The Pay-in /Pay-out of funds based on the money statement and that of securities
based on Delivery Order/ Receive Order issued are settled on T+2 day
• Demat pay-in-
• The Members can effect pay-in of demat securities to the Clearing House through
either of the Depositories i.e. the National Securities Depository Ltd. (NSDL) or Central
Depository Services (I) Ltd. (CDSL).
• In case a Member fails to deliver the securities, the value of shares delivered short is
recovered from him at the standard/closing rate of the scrips on the trading day.
Settlement (3/4)
• Auto delivery facility-
• This auto delivery facility is available for CRS (Normal & Auction) and for trade-to-trade
settlements.
• Members wishing to avail of this facility have to submit an authority letter to the
Clearing House.
• This auto delivery facility is currently available for Clearing Member (CM) Pool accounts
and Principal accounts maintained by the Members with the respective depositories.

• Securities Pay-out
• BSE has also provided a facility to the Members for transfer of pay-out securities
directly to the clients' beneficiary owner accounts without routing the same through
their Pool/Principal accounts in NSDL/ CDSL. 
• In case delivery of securities received from one depository is to be credited to an
account in the other depository, the Clearing House does an inter-depository transfer to
give effect to such transfers.
• In case of physical securities, the Receiving Members are required to collect the same
from the Clearing House on the pay-out day.
Settlement (4/4)
• Funds Payout
• The bank accounts of the Members having pay-out of funds are credited by the
Clearing House with the Clearing Banks on the pay-in day itself

In case a Member fails to deliver the securities, the value of shares delivered short is
recovered from him at the standard/closing rate of the scrips on the trading day.
THANK YOU