Contabilidad popular: aproximaciones teórico-conceptuales

Rolling settlement system:

Under rolling settlement system, the settlement takes place n days (usually 1,2 ,3 or 5days) after the trading day. The shares bought and sold are paid in for n days after the trading day of the particular transaction. Share settlement is likely to be completed much sooner after the transaction than under the fixed settlement system.

The rolling settlement system is noted by T+N i.e. the settlement period is n days after the trading day. A rolling period which offers a large number of days negate

the advantages of the system. Generally longer settlement periods are shortened gradually.

SEBI made RS compulsory for trading in 10 securities selected on the basis of the criteria that they were in compulsory demats list and had daily turnover of about Re.1 crore or more. Then it was extended to “A” stocks in Modified Carry Forward Scheme, Automated Lending and Borrowing Mechanism (ALBM) and Borrowing and lending Securities Scheme (BELSS) with effect from Dec 31, 2001.

SEBI has introduced T+5 rolling settlement in equity market from July 2001 and subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling settlement experience it was further reduced to T+2 to reduce the risk in the market and to protect the interest of the investors from 1st _{April 2003.}

Activities on T+1:

Conformation of the institutional trades by the custodian is sent to the stock exchange by 11.00 am. A provision of an exception window would be available for late confirmation. The time limit and the additional changes for the exception window is dedicated by the exchange.

The exchanges/clearing house/ clearing corporation would process and download the obligation files to the broker’s terminals late by 1.30 pm on T+1. Depository participants accept the instructions for pay in securities by investors in physical form up to 4 pm and in electronic form up to 6 p.m. the depositories accept from other DPs till 8p.m for same day processing.

T+2 activities:

The depository permits the download of the paying in files of securities and funds till 10.30 am on T+2 from the brokers’ pool accounts. The depository processes the pay in requests and transfers the consolidated pay in files to clearing House/clearing Corporation by 11.00am/on T+2. The exchange/clearing house/clearing corporation executes the pay-out of securities and funds latest by 1.30 pm on T+2 to the depositories

and clearing banks. In the demat mode net basis settlement is allowed. The buy and sale positions in the same scrip can be settled and net quantity has to be settled.

At the end of each trading day, concluded or locked-in trades are received from NSE by NSCCL. NSCCL determines the cumulative obligations of each member and electronically transfers the data to Clearing Members (CMs). All trades concluded during a particular trading period are settled together.

FUNDS SETTLEMENT

Currently, NSCCL offers settlement of funds through 13 clearing banks namely •

• HDFC Bank • Indusind Bank • ICICI Bank • Bank of India • UTI Bank • IDBI Bank

• Standard Chartered Bank • HSBC Ltd

• Kotak Mahindra Bank • SBI

• Union Bank of India • Citibank

Funds pay-in obligation is required to have clear funds in his a/c on or before 11.00 a.m. on the scheduled pay-in day. The payout of funds is cr. to the clearing account of the members on or after 1.30 p.m. on the scheduled payout day.

Clearing Account:

The clearing account is to be used exclusively for clearing operations i.e., for settling funds and other obligations to the Clearing Corporation including payments of Margins and penal charges. Clearing Members are required to authorize the Clearing Bank to access their clearing account for debiting and crediting their accounts, reporting of balances and other information as may be required by NSCCL from time to time as per the specified format.

Safety of Transaction on the Internet:

The safety of transaction on the internet depends on encryption system used. The better the transaction system , the more difficult it is for any person to Hack the site .Internationally ,the best system available today ,it is the 128-Bit Encryption ,

a system, which even the pentagon uses. Since in the online business, the order placed have pass through the network of public carriers, there exists a risk of data being intercepted or modified by a hacker or anyone with malicious intentions.

According to industry experts , in future when the quantum of funds Manage by the online brokers reach significant levels a security related issues Would take the center stage .However, most of the domestic player use some kind of securities features to enable safe transaction on the net .Encryption , build on the Secured socked layer (SSL) protocol developed by Netscape ,provides sufficient amount of security to the customers. Although , a majority of players offer 40-Bits Encryption method , ICICI and investment have already graduated to 128-Bit Encryption technology .Though the data transmitted in the form of plain text is Quite vulnerable , encrypted data has a much better level of protection.

It is true that pricing is still the unique selling proposition at the moment, But security could be the trump card for tomorrow. security and trust are the two important parameters,which will be crucial in determining a clients long term Relation with the broker.

Mr. Anup Bagchi.COO at ICICI Direct, “Brokerages are practically a non- issue, going by the US experience. What matters more are things like trust and security especially because the service involves dealing with people’s cash as well as stocks”.

The customer is also responsible for ensuring safety of online transactions. He normally gets a secured user ID and password ,the secrecy of which is to be maintained entirely by him. If the transaction system requires no manual intervention, it becomes safer. Among the Indian sites, ICICI Direct. Com , Investsmart India Ltd., Sharekhan, Indiabulls.com are among the few fully integrated online trading sites. It enables The elimination of the possibility of any manual intervention.Thus,orders can be directly sent to the exchange, ensuring that the investor gets the best and right Price.