National Securities Clearing Corporation Limited (NSCCL) is a wholly owned subsidiary of the National Stock Exchange (NSE). It manages the clearing and settlement operations of the exchange. One of the best online stock trade options is to sign up with a prominent brokerage that is recognized by the NSE.
Regarding the settlement mechanisms, the NSE has put in place a transparent model that matches the international standards followed in the advanced countries. Short and tight settlement cycles are one of the factors responsible for the growth of the NSE. However, NSCCL operates a well-defined settlement cycle. No deviations or deferments from this cycle are permitted. NSE also provides facilities for multiple settlement mechanisms. This includes:
• An account period settlement in the regular market sub-segment and dealing in physical securities
• Rolling settlement – normal (lot size one)
• Rolling settlement – normal (marketable lots) in book entry sub-segment
The settlement cycle has the following features:
• It is a weekly cycle
• It starts every Wednesday and ends the following Tuesday
• The pay in of securities takes place the next Monday
• The pay in of funds takes place the next Tuesday
• The pay out of funds and securities takes place the next Wednesday
• The total cycle consists of 15 days
However, during the peak trading season, the weekly cycle may get completed within a day or two. Sometimes, it may get completed within a few hours, when fewer people trade in stocks. The online stock trade option has led to faster transactions and has attracted scores of customers from across the length and breadth of the country. During the coming years more developments are likely to be seen.