Specified scrips to come under rolling after Nov

The Securities and Exchange Board of India is to bring specified scrips under rolling settlement with carry forward system anytime after November, by which time major stock exchanges are expected to be ready with the required software.

At a meeting with SEBI in Bombay on Wednesday, representatives of six major stock exchanges agreed to the November-end deadline for ensuring that their systems are ready for CFS in rolling settlement, executive director Pratip Kar told reporters.

Only 163 non-specified scrips were brought under rolling settlement so far, as they are not under CFS.

Simultaneously, automatic lending and borrowing mechanism (ALBM) in rolling settlement would be introduced on the National Stock Exchange, in a phased manner, he said.

The representatives of NSE, BSE, DSE, CSE, MSE and Ahmedabad Stock Exchange attended the meeting, he added. "The idea is to ensure the bourses' preparedness for CFS in rolling settlement for these products, which would be introduced as proposed by J R Varma Committee," Kar said.

SEBI board has approved introduction of CFS in rolling settlement in daily and weekly maturities of one to five days and continuous net settlement in its meeting held on June 14, 2000.

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