What are the regulations with regards to settlment time?
Buyer Securities Settlement A buyer will have his CDS account credited by T+3. However, if a buyer fails to pay by 12.30pm on T+3, the company then shall “sell-out’ the shares to cover his outlay on T+4. Seller Securities Settlement A seller’s CDS account is debited by T+3. This also means that a seller’s account does not have to be in credit, at the point when he trades. However, he must have shares to the credit of his CDS account on T+2. To settle such trade, he can transfer the required shares into his account on T+2 day itself before 12.30pm. If a seller fails to have his shares in his CDS account to settle a trade on T+3, his trade will fail and buying-in will be instituted against him on the same day.
