The facility will be given to investors on the bourse from April 17. The exchange has decided to re-activate the C group or odd-lot window on the BOLT system to help place orders for the sale or purchase of these physical shares despite the compulsory the demat mandate.

"The C group window will now accept trades in earlier market lots of 100 or 50 as well as odd lots in the scrips mandated for compulsory demat deliveries," the release stated.

The BSE has become the first exchange to offer such a facility after Sebi approved the plan in January this year. It may be recalled that Sebi had issued a notice dated January 25 to all exchanges asking them to make this facility available at the exchangelevel.

The facility, according to BSE officials, will help reduce the inconvenience caused to the investors in terms of the time taken to get the shares dematerialised.

However, in order to avail of this benefit the exchange has further suggested certain changes in the operational aspects of the scheme. The changes made in the operational modalities of the scheme include:

* The facility of delivering physical shares in the scrips mandated for compulsory demat delivery would be available only to the registered shareholders.

* Brokers selling these physical shares will have to ensure that the physical deliveries in scrips mandated for compulsory demat delivery do not exceed 500 shares in number or Rs 25,000 in value, whichever is less.

"The value in such cases would be specified on the delivery order since the odd-lot delivery orders are on the basis of transaction rates," stated a BSE release.

However, the exchange has also asked the brokers to ensure that the shares introduced through the C groupwindow are not reintroduced in the physical segment of the exchange.

In case of any company objection or bad delivery the settlement of the same would be done as per the bye-laws on good and bad delivery prescribed by Sebi.

The exchange has also laid down certain conditions whereby the selling broker would be treated as the introducing broker and hence would be responsible for trades and the settlement of the same.