Critically examine the following: (a) In depositories establishment of connectivity with NSDL and CDSL is there.

To enhance the efficiency of the stock market, SEBI introduced rolling settlements and prescribed compulsory dematerialised trading by companies through connectivity with both depositories, NSDL and CDSL. Stock exchanges may consider shifting the trading of securities of a company that has established connectivity with both depositories to normal rolling settlement, subject to the following conditions: At least 50% of non-promoter holdings are in Demat mode before shifting the trading in the securities of the company from trade-for-trade settlement (TFTS) to normal rolling settlement. For this purpose, listed companies must obtain a certificate from their Registrar and Transfer Agent (RTA) and submit it to the stock exchange(s). If an issuer company does not have a separate RTA, it may obtain a certificate from a Practicing Company Secretary / Chartered Accountant. There are no other reasons for the continuation of trading in TFTS. Stock exchanges are also required to report to SEBI the action taken in this regard in their monthly/quarterly development report.