The National Stock Exchange, (NSE), on January 15, 2025, issued a notification regarding the Additional clarification on custodian transactions in T+0 settlement cycle.
In continuation of SEBI and NSE circulars, the National Clearing Corporation Limited (NCL) has announced operational guidelines for the T+0 rolling settlement cycle in the Equity Cash Market, effective February 10, 2025. Key provisions include the activation of Family Account CP codes, ensuring custodians maintain audit trails for account inclusions/exclusions, and trade confirmations at the Family Account CP code level. Obligations will be settled at the custodian level, and custodians must complete settlements with individual CP codes within the same day. In case of trade rejection or non-confirmation, obligations will devolve on the member.
Additionally, members executing non-custodian UPI or non-UPI client trades must use the early pay-in mechanism for securities. Custodians can provide early pay-in/pay-in by the specified deadlines. Auto delivery-out instructions will be generated by NCL for the custodian's post-trade confirmation and uploaded to depositories for net deliverable obligations. Any additional obligations from trade rejection will result in incremental auto delivery-out instructions. Timelines and further details are provided in the Annexure.
[Notification No. NCL/CMPT/66135]
