Page 38 - DCOM504_SECURITY_ANALYSIS_AND_PORTFOLIO_MANAGEMENT

Unit 1: Introduction to Capital Market

Notes

In NSE, the trades pertaining to the rolling settlement are settled on a T+2 day basis where
T stands for the trade day. Hence trades executed on a Monday are typically settled on the
following Wednesday (considering 2 working days from the trade day). The funds and securities
pay-in and pay-out are carried out on T+2 day. An investor has to deliver the securities to the
trading member immediately upon getting the contract note for sale but in any case, before the
prescribed securities pay-in day. In case of buying, he has to pay the amount to the trading
member in such a manner that the amount paid is realised before the funds pay-in day.
The securities and the funds are paid out to the trading member on the pay-out day. The NSE
regulations stipulate that the trading member should pay the money or securities to the investor
within 48 hours of the pay-out. An investor should instruct the Depository participant (DP) to
give ‘Delivery Out’ instructions to transfer the shares from his Beneficiary Account to the Pool
Account of trading member through whom he has sold the shares. The details of the Pool A/c of
trading member to which the shares are to be transferred, scrip quantity, etc. should be mentioned
in the delivery Out instructions. The instructions should be given well before the prescribed
securities pay-in day. SEBI requires that the Delivery Out instructions should be given at least 24
hours prior to the cut-off time for the prescribed securities pay-in to avoid any rejection of
instructions due to date entry errors, network problems, etc. In case of buying, the trading
member will transfer the shares directly to Beneficiary Account of the investor on receipt of the
same from the Clearing Corporation.

1.3.6 Stock Market Information System

Stock exchanges quotations and indices published in daily newspapers are the main source of
information of the exchange traders and turnover. Dailies like Economic Times, Financial Express,
Business Standard, Times of India and Hindustan Times publish daily quotations and indices.
As for Bombay Stock Exchange, its quotation published in the Economic Times, information on
equity shares, starting from the first column, is presented in the following order: company's
name, previous day's closing price in brackets, all the daily traded prices as published, key
financial parameters such as Earnings Per Share (EPS) on Tuesdays, Cash earnings Per Share
(CPS) Wednesdays, cash P/E, and the high and low prices in the preceding 52 weeks.

The first traded price is the day's opening price. If only one such price is recorded, it is also the
day's closing balance. If there are two prices recorded, then the first is the opening and the
second the closing price. If there are three prices, then the middle quote is either the high or low
price. If there are four prices, then one of the middle prices is the day's high and the other, the

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