Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	Secured linkages are in place between the NSDL/CDSL and other market entities to transport data, which is secured in an encrypted form. Communication methods include dial-up modem and secured, leased, and dedicated telephone lines. Links are not in real time, however.
2.	Is there one or more depository or settlement system in the market?	Yes. Each of the major exchanges maintains a clearinghouse for transaction settlement and multiple depositories are permitted.
3.	If there are several, has a consolidation been considered? If yes, by when?	No. Consolidation of trading and settlement platforms is not promoted by the market regulators for the major exchanges and depositories. India historically maintained 20+ securities exchanges throughout the country; however, improvements in telecomunications have served to concentrate the majority of trading and settlement activity in Mumbai.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	No. Currently only local entities are permitted to link to India's securities systems. The market has not established external links to other securities exchanges nor depositories.
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	Direct remote participation by foreign intermediaries located outside India is not permitted; however, such entities are permitted to establish local subsidiaries or joint ventures with local partners in order to become direct participants to the securities system(s).