How does settlement take place on the purchase and sale of Rights Entitlement (RE)?
- Trades are cleared and settled (T+1) on a gross basis
- Funds are settled on a net basis
Gross Settlement: Transactions are completed on a one-to-one basis without bunching other transactions. It is done via RTGS
Deferred Net Basis Settlement (DNS)/Net Settlement: Transactions are completed in batches at specific times. Hence, all transfers are held up till the specified time. It is done via NEFT.
* REs are traded in the Trade-to-Trade (T2T) segment
* Intraday trading of REs is not allowed
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