Settlement and Allocation
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Settlement & Allocation
Allocation
  • Minimum of 25% of the shares offered shall be reserved for mutual funds and insurance companies, subject to allocation methodology. Any unsubscribed portion thereof shall be available to the other bidders.
  • The orders shall be cumulated by the DSE immediately on close of the offer. Based on the methodology for allocation to be followed as disclosed in the notice, the DSE shall draw up the allocation. i.e. either on a price priority (multiple prices) basis or on a proportionate basis at a single clearing price.
  • No allocation will be made in case of order/ bid is below floor price.
  • No single bidder other than mutual funds and insurance companies shall be allocated more than 25% of the size of offer for sale.
  • The allocation details shall be shared by the DSE with the other exchange after the allocation is crystallized.


Settlement
  • The allocation and the obligations resulting thereof shall be intimated to the brokers on T day.
    b) Settlement shall take place on trade for trade basis. For non-institutional orders/bids and for institutional orders with 100% margin, settlement shall take place on T+1 day. In case of orders/bids of institutional investors with no margin, settlement shall be as per the existing rules for secondary market.
  • Funds collected from the bidders who have not been allocated shares shall be released after the download of the obligation.
  • On T+1 day, to the extent of obligation determined, the clearing Corporation/ Clearing house of DSE shall transfer such number of shares to the clearing corporation/clearing house of the other stock exchange, without consideration of money. Excess shares, if any, shall be returned to seller broker(s).The direct credit of shares shall be given to the demat account of the successful bidder provided such manner of credit is indicated by the broker/bidder.
  • Following is the activity schedule for OFS:
    Activity Day
    Securities transfer by selling member
    T - 1 working day
    Trading T
    Custodial Confirmation T day for 100% Margin bids.By T+1 day for 0% Margin Bids
    Final Allocation Report download T
    Funds pay in T+1 working day
    Funds shortages intimation by Custodian / Member T+1 working day
    Securities & Funds pay out T+1 working day for 100% Margin bids
    T+2 day for 0% Margin Bids
  • The applicable Securities transaction tax (STT) shall be collected on T+1 day from the primary settlement account of the member maintained with the clearing bank.


Handling of default in pay-in
  • In case of default in pay-in by any investor, 10% of the order value shall be charged as penalty from the investor and collected from the broker. This amount shall be credited to the Investor Protection Fund of the stock exchange.
  • The price at which allotments have been made based on the allocation on T day shall not be revised as a result of any default in pay-in.
  • Issuer shall have the option to cancel in full or conclude the offer.
  • Allotment details after settlement shall also be disseminated by the exchange.
  • Allocation details after settlement shall be consolidated by the DSE and excess shares, if any, shall be returned by the respective Clearing Corporation/ Clearing house to the seller(s) broker(s).
  • Settlement Guarantee Fund shall not be available for OFS through stock exchange mechanism.


Issuance of Contract Notes
  • The brokers shall be required to issue contracts note to its clients based on the allotment price and quantity in terms of conditions specified by the exchange.