To fast-track delivery of shares, market regulator Sebi today provided flexibility to clearing corporations to decide the time for conducting the settlement of auction session in three days after trade (T+3day).
The move will help in reducing time for the delivery of shares to buying broker, in case of default by selling broker.
In a circular, Securities and Exchange Board of India (Sebi) said it has decided to "provide flexibility to clearing corporations to decide the time for conducting the settlement of auction session on or before T+3 day."
The auction session would be conducted by T+2 day and the same would be settled by T+3 day.
The decision has taken into account suggestions of clearing corporations and stock exchanges.
The stock exchanges and clearing corporations have been directed to put in place the adequate systems and issue the necessary guidelines for implementing the decision.
