Auto pay-in

Pay-in normally needs an instruction. A clearing member tells its DP to move securities into the Clearing Corporation's pay-in process.

Auto pay-in removes even that step. This is for members who have asked for it. The member sends a written request to the Clearing Corporation. After that, it need not give any pay-in instruction at all. At the set pay-in time, the system simply considers the available securities in the member's account for pay-in on its own.

The exact mechanics differ a little between BSE and NSE clearing members.

A BSE clearing member can obtain auto pay-in by written request to ICCL. Details of its auto pay-in are viewable on the CDSL system from the afternoon of T+1, once the Clearing Corporation uploads the instructions. At the designated pay-in time, the earmarked securities are automatically considered for pay-in, with debit happening at the time of pay-out.

An NSE clearing member obtains the same facility by written request to NSCCL, but the debit quantity is worked out by a specific logic comparing early pay-in against the Auto DO: if early pay-in exceeds the Auto DO, nothing further is debited; if early pay-in is less than the Auto DO, the difference is debited; if there is no early pay-in but an Auto DO exists, the full Auto DO quantity is debited; and if neither exists, the entire quantity available in the member's settlement pocket is debited.

For exchanges other than BSE where the Clearing Corporation does not generate specific auto pay-in instructions, auto pay-in becomes the default — securities available in the member's settlement pocket at the designated pay-in time are automatically considered for pay-in without any request being necessary at all.

Suvidha Securities, an NSE clearing member, has written to NSCCL requesting auto pay-in. On a settlement day, it has already given an early pay-in instruction for 800 shares, while its net Auto DO obligation for the same ISIN comes to 1,200 shares.

Because the early pay-in quantity (800) is less than the Auto DO (1,200), the system debits only the difference — 400 shares — from Suvidha Securities' settlement account at the designated pay-in time, worth Rs 1,92,000 at Rs 480 each, rather than debiting the full 1,200 shares again on top of the 800 already delivered early.

Had Suvidha Securities instead given an early pay-in of 1,500 shares — more than the 1,200 Auto DO — no further quantity would be debited under auto pay-in at all, since the early pay-in already covers the obligation.

Chapter 8, section 8.3.1, sets out auto pay-in immediately after normal pay-in and early pay-in, distinguishing BSE's ICCL-based process from NSE's NSCCL-based process and its early-pay-in-versus-Auto-DO debit logic.

Expect a question on which body a BSE clearing member writes to for auto pay-in (ICCL) versus an NSE clearing member (NSCCL), and a scenario question applying the NSE debit logic comparing early pay-in against Auto DO.

• BSE and NSE clearing members request auto pay-in from different Clearing Corporations — ICCL for BSE, NSCCL for NSE — and the underlying debit logic differs between the two.
• The NSE debit logic compares early pay-in against Auto DO, not against the member's total obligation — get this comparison backwards and the debit quantity comes out wrong.
• For exchanges other than BSE with no specific Auto DO generated, auto pay-in is the default outcome, not an opt-in facility — the entire available quantity in the settlement pocket is considered automatically.
• Do not confuse auto pay-in (a settlement-day debit mechanism) with Auto Delivery-out, which is a separate, earlier NSDL-only automation for moving securities into the CM Delivery Account in the first place.