Title: The stock market renaissance: the case of the clearing and settlement process

Authors: Preeti Goyal; Madhu Vij

Addresses: Great Lakes Institute of Management, Bilaspur-Tauru Road, NH-8, Gurugram, Haryana, India ' Faculty of Management Studies, University of Delhi, India

Abstract: There has been a significant effort to integrate regional capital markets which has required the integration of the underlying infrastructure. Addressing these challenges will require structural changes to the infrastructure. Clearing and settlement process is at the heart of this infrastructure. It enables the transfer of funds and equity shares between the buyer and the seller. Using the structural changes to the clearing and settlement process in the Indian stock markets, this study aims to study the impact of these changes on the level of trades that fail to settle. Our findings suggest that in general the level of trades failing to settle has seen considerable decrease, and that the structural changes to the process have been generally successful. Our findings will find significance in choosing the solutions to address the challenges that are arising from integration of stock market infrastructure.

Keywords: stock market infrastructure; micro-structure; capital market integration; structural changes; clearing and settlement.

DOI: 10.1504/IJBEM.2018.092992

International Journal of Business and Emerging Markets, 2018 Vol.10 No.3, pp.229 - 249

Received: 21 Oct 2016
Accepted: 27 May 2017

Published online: 11 May 2018 *

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