The Securities and Exchange Board of India (Sebi), the markets watchdog, has done away with a no-delivery period for all types of corporate actions for scrips that are traded in the compulsory dematerialised mode and accordingly, short deliveries, if any.
During corporate announcements like bonus or dividend, shares of that company were under a no-delivery period. This system made sense in a period when the trading used to take place in the physical form. However, with the introduction of the dematerised system, this system has lost its relevance. In another move, the market regulator has also reduced the notice period for corporate actions from companies to stock exchanges to at least seven working days. Sebi added that the circular had been issued to protect the interests of investors in securities and to promote and regulate the securities market.
