Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 2

Securities Systems must allow the option of network access on an interactive basis. They should cope with peak capacity without any service degradation, and have sufficient standby capabilities to recover operations in a reasonably short period within each processing day.

1.	How often, over the last twelve months, has the depository been required to:
	Change its published settlement timetable?	In India, the depository system and the settlement system are two separate entities. Settlement schedules are established by the respective exchanges and followed by the depositories. The NSDL and CDSL maintain links with multiple exchanges and adhere to their settlement schedules. The standard schedules are altered only in case settlement date falls on a public holiday.
	Extend the time of opening for settlement input by users?	The by-laws and business rules of the depositories allow for the alteration of business hours by notifying participants. The depositories have not extended the opening time for settlement input by the users over the past twelve months.
	Delay start of day processing?	The by-laws and business rules of the depositories allow for delays in the commencement of settlement processing by notifying participants. The depositories have not extended the opening time for settlement input by the users over the past twelve months.
2.	Does the depository operate real time or multiple batch processing for settlement?	The depositories operate multiple batches to process securities settlements.
3.	Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment?	No. Each depository maintains terminals at depository participants to enable interactive communication. However, no online realtime communication channel exists, all securities transaction information is processed in batch mode. The NSDL maintains over 2,600 service centers operated through its 204 depository participants to process investor activity. The CDSL is connected to 161 depository participants.
4.	Has the depository ever failed to recover an outage within the day or failed to start processing runs for a whole day; and, if so, when did that failure arise and what steps have been taken to prevent a similar event in the future?	Not applicable as the CDSL or NSDL have not experienced a failure of operations. Both depositories maintain disaster recovery sites.