REPORTING&SETTLEMENT OF OTC COPRORATEBONDS TRANSACTIONS UNDER
DVP 1 SYSTEM
throughClearing Corporation of Exchanges
PPT Courtesy NSECopyright © 2012 National Stock Exchange of India Ltd.

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Table of Contents
 OTC Transactions

 Trade Reporting Settlement

 Exceptions

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OTC Transactions in Corporate Bonds

 Corporate Bond REPOS Commercial Paper (CP) Certificate of Deposit (CD)PPT Courtesy NSE

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Trade Reporting Along with reporting a trade, settlement attributes

also reported
 Venue of settlement
 Terms of trade T0 T1 or T2 Total consideration
 Custodian settlement
 Information passed on by the reporting platform tovenue of settlement intra day.

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OTC Deals Strike & Reporting
Registered Buyer

Registered Seller

Deal Struck

F-TRAC

Buyer –seller
All Fields
MATCHED

Clearing
Corporation ofExchanges
For Settlement

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F-TRAC

Buyer –seller All
Fields NOT
MATCHED

F-TRAC
Unmatched
Deals

Unmatched Deals need tobe modified & matched OR
cancelled and deleted from
F-TRAC by mutual agreement
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Settlement
 Securities (Bonds CP CD) settled in depositories Existing demat account of participants
 Funds settled through RBI RTGS
 Participants who have RBI RTGS account– Buyers transfer funds to Settlement account– Sellers receive funds from Settlement account Participants who do not have RBI RTGS account– Buyers avail their bankers facility to transfer funds tosettlement account– Sellers receive funds through bankers RTGS facility

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DVP 1 Settlement (Normal)
CC B/O A/CTransfer Bonds

Transfer Bonds

Transfer Slip to DP

Settlement Notification

Bonds Pay-In

Registered Seller
Matching payinwith obligation

Bonds Pay-Out

a. Process Funds Received
b. Process Bonds Received
c. Sends notification to buyer
d. Sends Notification to Seller
e. Follow Up
f. Executes Settlements &Payouts

Funds Pay-Out

Funds Pay-In

Settlement Notification

Transfer Funds

Registered Buyer

Initiates RTGS

Transfer Funds
CC RTGS A/C

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Failed Trades (Funds not Received from Buyer)
Bonds returned to Seller if Seller delivers bonds
CC B/O A/CTransfer Bonds

X

Transfer Slip to DP

Settlement
Notification

Return of Bonds
Bonds Pay-In

Registered Seller
Matching payinwith obligation

X

Funds Pay-Out

Settlement Notification

X

Bonds Pay-Out

a. Process Funds Received
b. Process Bonds Received
c. Sends notification to buyer
d. Sends Notification to Seller
e. Follow Up
f. Executes Settlements &Payouts

XX

X

Transfer Funds

Registered Buyer

X
Funds Pay-In

Transfer Funds

Initiates RTGSX

CC RTGS A/C

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Failed Trades (Bonds not received from seller)
Funds returned to buyer if buyer transfers funds

X

CC B/O A/CTransfer Bonds

X

Transfer Slip to DP

Settlement Notification

X
Bonds Pay-In

Registered Seller
Matching payinwith obligation

XXX

Bonds Pay-Out

a. Process Funds Received
b. Process Bonds Received
c. Sends notification to buyer
d. Sends Notification to Seller
e. Follow Up
f. Executes Settlements &Payouts

X
Funds Pay-Out

Funds Pay-In

Settlement Notification

Registered Buyer

Initiates RTGS

Funds Returned

X

Transfer Funds

Transfer Funds
CC RTGS A/C

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Thank You

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