CLEARING

&
SETTLEMENT
CHAPTER - 4

CAPITAL MARKET WITH ARINDAM BAKSHI

 International Securities Identification Number
• SEBI being the National Numbering Agency[NNA] for India has
permitted NSDL to allot International Securities Identification
Number (ISIN) for demat shares.

Numbering System of ISIN.

• The numbering structure for securities in NSDL is of 12 digit
alpha numeric string.
• The first two characters represent country code i.e. IN (in
accordance with ISO 3166).
• The third character represents the Issuer Type
CAPITAL MARKET WITH ARINDAM BAKSHI
• The next 4 characters (fourth to seventh
character) represent company identity. The first
3 characters are numeric. The fourth character
is alpha character.
• The next two characters (the eight and ninth
characters) represent security type for a given
issuer.
• The next two characters (the tenth and eleventh
characters) are serially issued for each security
of the issuer entering the system. CAPITAL MARKET WITH ARINDAM BAKSHI
IMP:- Gsecs ISIN given by RBI
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CAPITAL MARKET WITH ARINDAM BAKSHI
 Investor Protection Fund
• Investor Protection Fund (IPF) has been set up as a trust
under Bombay Public Trust Act, 1950 under the name and
style of National Stock Exchange Investor Protection Fund
Trust and is administered by the Trustees.
• The IPF is maintained by NSE to make good investor claims,
which may arise out of non-settlement of obligations by the
trading member, who has been declared defaulter, in
respect of trades executed on the Exchange.

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 Investor Protection Fund
• The maximum amount of claim payable from the IPF to the
investor (where the trading member through whom the
investor has dealt is declared a defaulter) is Rs.15 lakh.
• A notice is published in widely circulated daily newspapers
notifying the trading member who has been declared
defaulter. Claims against the trading member specified in
the notice are required to be made, on or before three
months from the date of such published notice.

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 Investor Education & Protection Fund
• Central Government has established a fund called Investor Education
and Protection Fund (IEPF) in October 2001 for the promotion of
awareness amongst investors and protection of the interest of
investors.
• It is maintained by Ministry of Corporate Affairs, Govt. of India.
• It stipulates activities related to Investor’s education, awareness and
financial security
• The following amounts that remained unpaid and unclaimed for a
period of seven years from the date they became due for payment is
credited to the fund:
– Unpaid dividend
– Application money not refunded
– Matured deposits & debentures
– Accrued interests CAPITAL MARKET WITH ARINDAM BAKSHI
CASELET : ISIN

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 Settlement Reports
• Prepared by NSCCL
• All are downloadable by CMs/Custodians

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 END
OF
CHAPTER-4

CAPITAL MARKET WITH ARINDAM BAKSHI