Under the scripless trading system, settlement of transactions relating to securities takes place through a book entry.
The entire scripless trading system comprises the following three segments:
- National Trade Comparison and Reporting System which prescribes the terms and conditions of contract for the securities market.
- National Clearing System which aims at determining the net cash and stock liability of each broker on a settlement date.
- National Depository System which arranges to provide for the transfer of ownership of securities in exchange on payment by book entry on electronic ledgers without any physical movement of transfer deed.
