The Securities and Exchange Board of India's decision to introduce compulsory demat settlement in 10 scrips starting from January 4, 1999, is because of the fact that in many of the scrips dematerialised, the delivery percentage in physical settlement is already as high as 90 per cent.
According to data with Business Standard, the has been a steady increase in the amount of demat deliveries in most of the pivotals including State Bank, Industrial Development Bank of India, Reliance Industries, Bank of India, ICICI Ltd, Larsen and Toubro, Tata Steel and IPCL.
On the National Stock Exchange (NSE), the average demat delivery percentage between settlements nos 1998021 and 1998030 has been 96 per cent. Similarly on the Bombay Stock Exchange (BSE) between settlement nos 989011 and 9899018, SBI stock has seem 97% of deliveries in demat form on average.
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In Reliance Industries, the average NSE demat delivery per centage has been 81 per cent while on the BSE it has been 79 per cent. Industrial Development Bank of India's average demat delivery in the last ten settlements on both the NSE and the BSE have also been impressive, say analysts.
While on the NSE the average demat delivery has been 90 per cent, it has been even higher on the BSE at 97 per cent.
In the case of ICICI, the average demat delivery in the last ten settlements has been 88 per cent o the NSE and 72 per cent on the BSE.
In case of Larsen and Toubro, the average demat delivery in the last ten settlements has been 81 per cent on the NSE and 73 per cent on the BSE.
Analysts say that the these high demat settlement figures in the past ten weeks, may have helped convince Sebi that the market is ready for compulsory dematerialisation for these 10 scrips.