Today's meeting, however, did not dwell on this issue but focussed on drawing up the list of ten securities in which trading would be compulsorily settled in the new format, Kar told reporters here following the meeting.

It was decided that ten scrips with a minimum 250 trades per day and amounting to Rs one crore in terms of value would be chosen from the list of 104 securities mandated for electronic settlement.

A sub-group comprising Deena Mehta vice-president of the Bombay Stock Exchange (BSE), Ravi Narain executive director of the National Stock Exchange (NSE) and M R Mayya chairman of the Inter-connected Stock Exchange (ISE) would draw up the list after averaging nine months (January to September 1999) data on the BSE and NSE.

Karsaid the list would be announced by end-September, so as to give the market participants adequate time to gear up for rolling settlement. The group in its meeting today stressed the need for an efficient clearing house and depository system as an important pre-requisite for the smooth functioning of rolling settlement and the regulator was assured by the two depositories that adequate infrastructure would be in place by December.

It was also decided at the meeting that a group comprising representatives of the BSE, NSE, ISE and the two depositories, National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL), would chalk out the steps to be taken by clearing houses and depository participants (DPs) so as to gear up for a daily settlement system.

While addressing the importance for electronic fund transfer (EFT) in the rolling settlement system, the group felt that at least telegraphic cash transfer should be available at the district level and that a larger number of bank brancheswith EFT facility would be desirable. It was decided that Sebi would take up the matter with the Reserve Bank of India (RBI).

Sebi has asked both depositories to encourage DPs to set up more branches with on-line connectivity and stressed on the need to hasten the inter-connectivity of NSDL with CDSL.