This is received on the payout day from the clearing corporation of the stock exchange. The broker will give instruction to its DP to debit his account and credit account of investor who has brought the shares. Taking about the trading and settlement it can also be told that the investor will give Receipt Instruction to DP for receiving credit by filling appropriate form.
However one can also give standing instruction for credit of securities in his account, which is surely a convenient way of receiving shares related to trading and settlement as that will or rather they are known to prevent the requirement of giving Receipt Instruction each and every time. In the case of trading and settlement the investor will give delivery instruction to DP to debit his account and credit the brokers account with correct ISIN of the number of securities sold by him.
Such instruction should reach the DP office at least 24 hours before the pay in as other wise DP will accept the instruction only at the risk of the investor as mentioned in the trading and settlement policies. DP will debit his account and acclaim the account of the broker through whom shares have been sold. The broker would then move the shares to the clearance business of the exchange where shares have been sold. The rolling settlement ensures that the trade of each day is settled by keeping a fixed gap of a specified number of working days between trading and settlement. It is a matter of fact worth mentioning that this gap is five working days after the trading and settlement days.
The following is the summary of trading and settlement process in India,equity trading,debt settlement,payment settlement
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It is a matter of fact worth mentioning that the procedure for buying and selling dematerialized securities is similar to the procedure for trading and settlement of physical securities. There are a lot of procedures that has to be followed in case of Trading and Settlement. In the case of purchase the broker will receive the securities in his account. The difference lies in the process of trading and settlement of shares that is delivery in case of sale and receipt in case of buy of securities.
It is a matter of fact worth mentioning that the procedure for buying and selling dematerialized securities is similar to the procedure for trading and settlement of physical securities. There are a lot of procedures that has to be followed in case of Trading and Settlement. In the case of purchase the broker will receive the securities in his account. The difference lies in the process of trading and settlement of shares that is delivery in case of sale and receipt in case of buy of securities.
