NSE and BSE have different clearing agencies to settle trades executed on their exchanges.
The Clearing House: The clearing and settlement activities of trades on BSE are taken care by BOI (Bank Of India) Share Holding. BOI Share Holding is a subsidiary company of BSE and Bank Of India. It’s also known as Clearing Hose.
The Clearing Corporation: The National Securities Clearing Corporation Limited (NSCCL) takes care about clearing and settlement activities of NSE. NSCCL is a fully owned subsidiary of National Stock Exchange (NSE), India. Simply it’s called as Clearing Corporation.
BSE Settlement Cycle:
Day Activity T | Trading through BOLT (BSE Online Trading) System, downloading of statements showing details of transactions and margins at the end of the day. Downloading of provisional securities and funds obligation statements by member-brokers. 6A/7A entry by the member-brokers/ confirmation by the custodians.
6A/7A: A mechanism whereby the obligation of settling the transactions done by a member-broker on behalf of a client is passed on to a custodian based on confirmation of latter. The custodian can confirm the trades done by the member-brokers on-line and up to 11 a.m. on the next trading day. The late confirmation of transactions by the custodian after 11:00 a.m. up to 12:15 p.m., on the next trading day is, however, permitted subject to payment of charges for late confirmation @ 0.01% of the value of trades confirmed or Rs. 10,000/-, whichever is less. |
Day Activity T +1 | Confirmation of 6A/7A data by the Custodians up to 11:00 a.m. Downloading of final securities and funds obligation statements by members. |
Day Activity T +2 | T+2 – Pay-in of funds and securities by 11:00 a.m. and pay-out of funds and securities by 1:30 p.m. The member-brokers are required to submit the pay-in instructions for funds and securities to banks and depositories respectively by 10: 30 a.m. |
Day Activity T +3 | Auction on BOLT at 11.00 a.m. |
Day Activity T +4 | Auction pay-in and pay-out of funds and securities by 12:00 noon and 1:30 p.m. respectively. |
Settlement Cycle on NSE:
Day | Type of Activity | Activity |
T | Trading | Rolling Settlement Trading |
T+1 working days | Clearing | Custodial Confirmation |
T+1 working day |
| Delivery Generation |
T+2 working day | Settlement | Securities and Funds pay in |
T+2 working day |
| Securities and Funds pay out |
T+2 working day |
| Valuation Debit |
T+3 working day | Post Settlement | Auction |
T+4 working day |
| Bad Delivery Reporting |
T+5 working day |
| Auction settlement |
T+6 working day |
| Rectified bad delivery pay-in and pay-out |
T+8 working day |
| Re-bad delivery reporting and pickup |
T+9 working days |
| Close out of re-bad delivery and funds pay-in & pay-out |
Auction is applicable if an investor/broker doesn’t meet his obligations. The process of AUCTION will be discussed in detail.
Source: BSE Trading and Settlement
NSE Website -> NSCCL -> Clearing & Settlement
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Sathish Emmadi
Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.
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{ 1 comment… read it below or add one }
Respected Sir,
Really thank you for uploading this information. This is really very useful to those who do not know anything about Indian trading and Clearing & Settlement System.
I had so many doubts about trading and their clearing process before visiting your site but now everything is clear like crystal clear.
And the most important thing is; the language which you used in your entire article is so simple and ease to understand.
So, very hearty thnx to you.
Best regards….
- Kartik Mhavarkar