"Auto delivery facility is not applicable to all kinds of transactions." Discuss the statement with a view of applicability as well as non-applicability.

CS Executive · Capital Markets & Securities Laws · PYQS · December 2021
"Auto delivery facility is not applicable to all kinds of transactions." Discuss the statement with a view of applicability as well as non-applicability.

Answer & Explanation:

Auto Delivery Facility Instead of issuing Delivery Instructions for their securities delivery obligations in demat mode in various scrips in a settlement/auction, a facility has been made available to the member brokers of automatically generating delivery instructions on their behalf from their Clearing Member (CM) Pool accounts maintained with National Securities Depository Ltd. (NSDL) and CM Principal Accounts maintained with Central Depository Services (India) Ltd. (CDSL). Applicability: This auto delivery facility is available for: CRS (Normal & Auction) Trade to trade settlements The member-brokers wishing to avail of this facility have to submit an authority letter to the Clearing House. This auto delivery facility is currently available for CM Pool accounts and Principal accounts maintained by the member-brokers with NSDL and CDSL respectively. Non-Applicability: This facility is, however, not available for: Delivery of non-pari passu shares (shares that do not have equal rights or status). Shares having multiple International Securities Identification Numbers (ISINs).

Topics: Depositories

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