What is Trade-to-Trade in Rolling Settlements?
SEBI has mandated that trading and settlement in all listed securities would take place only in CRS. Further, it had directed all companies to sign agreements and establish connectivity with both the depositories latest by September 30, 2001. SEBI had further mandated that the trading and settlement in securities of those companies which have failed to make the required demat arrangements by the above stipulated date, be shifted to Trade-to-Trade basis. Once any scrip is shifted to Trade-to-Trade basis, transactions in the scrip are not netted and all purchase and sale transactions in the same scrip in single settlement are to be settled separately. For example, the trading and settlement in securities of XYZ Ltd. have been shifted to Trade-to-Trade. An investor has bought 100 shares of this company in the morning on April 1, 2008 and he squares off purchase of these 100 shares by selling the same in the trading hours on the same day. In this case, his purchase and sale transactions wo
