Though NSE officials were not willing to speak on the issue, sources said the current settlement software of NSE's clearing corporation recognises a single account per clearing member. Now with two depositories, the software would have to be modified to ensure that multiple accounts are recognised.
"The file structures, too, are different and an interface would have to be developed between the NSE's settlement software and that of CDSUs. It is basically a logical problem. The software has to recognise two accounts as against one now. It is a significant change which needs to be made," said a source asWciated with the software.
According to sources, even though work on the software modification has commenced around a month back, it is unlikely that it would be completed for another three months.
"Only after that would NSE clearing members be able to open accounts with CDSL. However, they would be able to settle trades from the Bombay Stock Exchange (BSE). Even when the National Securities Depository Ltd (NSDL) was set up, only NSE had operated through it for the first six months or so," said the source.
NSDL has already chalked out a nine-lakh account base and has dernaterialised over 900 crore shares valued at over Rs 1,50,000 crore. CDSL, on the other hand, has just around 5,000 accounts.
CDSL, the second depository, has had a late start Issues like inter-depository connectivity, too, are yet being sorted out. The depository cannot begin active functioning till connectivity is not put in place. It has been given a deadline of August 7 for the purpose.
In case of a connectivity delay, while a NSDL account hoider would be able to transact at all leading stock exchanges, a CDSL account holder will not be able to do so.
Meanwhile, the NSE's clearing corporation and CDSL are currently getting the proposed agreement between them legally vetted before signing it up. "The legal wings of both the entities are vetting the draft agreements now and we hope to sign it soon," said a source. meta name="description" content="">
