The National Stock Exchange (NSE) has issued a circular on settlement procedure of trades executed for Buyback in Open market (BO). This circular was issued on 17th April, 2023.
The members shall note that Applicable Symbol file shared by NCL shall contain 2 records i.e. one for applicable series such as EQ/BE/BZ/SM etc and another for BO series.
Trades executed in BO series shall be cleared and settled on a gross obligations basis. Settlement shall be compulsorily done in dematerialised mode. All trades shall be settled under settlement type ‘Z’ and settlement guarantee shall be provided.
OTR window shall be available till on T day as per applicable timings. Trades executed in BO series shall be settled on a T+1 rolling basis. Early pay-in/ pay-in of securities for BO series shall be done in Trade for trade segment as per the existing procedure. Shortages, if any, shall be compulsorily closed-out at the highest price prevailing in the Exchange from the day of trading on the T day or 20% above the official closing price on the T day, whichever is higher.