Description
BSE announces change in Securities Lending and Borrowing reverse leg settlement day from first Thursday to first Tuesday of the month, effective October 2025.
Summary
BSE has announced a change in the settlement day for Securities Lending and Borrowing (SLB) reverse leg contracts. The settlement day will shift from the first Thursday of each month to the first Tuesday of each month, effective for contracts expiring from October 2025 onwards.
Key Points
- Settlement day changes from first Thursday to first Tuesday of the month
- Change applies to SLB reverse leg contracts only
- Effective for contracts expiring from October 2025 onwards
- First revised expiry date: Tuesday, October 07, 2025
- EOD file reflection date to be communicated separately
Regulatory Changes
This change modifies the existing SLB settlement cycle as referenced in ICCL Circular No. 20250501-5 dated May 01, 2025. The revision affects the timing of reverse leg settlements in the securities lending and borrowing mechanism.
Compliance Requirements
- Market participants engaged in SLB transactions must adjust their settlement processes
- Systems and procedures need to be updated to reflect the new Tuesday settlement cycle
- Participants should monitor for further communications regarding EOD file updates
Important Dates
- Effective Date: October 2025 contracts onwards
- First Revised Expiry: Tuesday, October 07, 2025
- EOD File Update: To be communicated separately
Impact Assessment
This change will affect the operational timeline for SLB participants, requiring adjustments to settlement procedures and system configurations. The shift from Thursday to Tuesday settlement may impact cash flow timing and operational planning for market participants engaged in securities lending and borrowing activities.
Impact Justification
Operational change affecting SLB settlement cycles but not impacting individual securities trading