At its meeting on Thursday, the committee decided to include both carryforward and non-carryforward shares in the process of selecting the 10 scrips for the introduction of the facility. The committee decided to propose T+5 rolling settlement system i.e., Monday's trades are settled on Monday's.

The selection of the scrips will be decided by a sub-group of the committee comprising of the NSE, BSE, DSE and ISE representatives. The selection will be based on the liquidity of the scrips.

The facility, however, will be confined only to the demat scrips and to all those exchanges which are connected to the depositories and have a trade guarantee fund.

The committee membersalso discussed the possibility of introducing continuous net settlement (CNS) system based on the US model. Under CNS system, if 500 shares are bought on Monday and the investor sells 400 shares on Thursday, the balance of only 100 need be delivered on Monday at the settlement. This, however, will depend on the ability of the software to provide such facility.

It is likely that B group shares of the BSE could be included on an experimental basis for the introduction of rolling settlement.

While sticking to the deadline of December for the introduction of the facility, the committee members also suggested that rolling settlement be made available to all investors. When the idea was mooted by Sebi chairman D R Mehta at a meeting of all stock exchanges recently, it was proposed to restrict the facility to institutional investors.

Besides, the introduction of derivatives as a necessary condition for rolling settlement may not be there. This is so because introduction of derivatives will depend onlegislation, which has to wait until the new government assumes office. With a deadline of December first week set by the regulator, it may not be possible to have derivatives trading ahead of the introduction of rolling settlement.