This presentation gives the flow of different transactions being handled by CREST

1. CREST - SETTLEMENT - Anurag Singh

3. OVERVIEW OF CREST

10. CREST PARTICIPANTS

19. MEMBER ACCOUNT STRUCTURE User Sponsored Member Member Sponsored Member Sponsored Member Default Member Account Member Account 1 Member Account n Available Deposit Link

21. CREST HANDLED TRANSACTIONS

24. SETTLEMENT INSTRUCTION

34. CLIENT RELATIONSHIP HANDLED OUTSIDE CREST Broker’s Nominee (Sponsored Member) CCP (Member) Principal (Member) Stock Stock Settlement Instruction Settlement Instruction SETS - Trade a/c 1 a/c 1 a/c a/c Broker Principal Investor

35. BACK-TO-BACK DELIVERY Market Maker (Member) Broker’s Nominee (Sponsored Member) Investor B Sponsored (Member) Stock Stock Settlement Instruction Settlement Instruction Trade a/c 1 a/c 1 a/c Market Maker Broker Investor a/c 1 a/c 1

36. INVESTOR’S HOLDING MAINTAINED BY CUSTODIAN Market Maker (Member) Broker’s Nominee (Sponsored Member) Custodian (Member) Stock Stock Settlement Instruction Settlement Instruction Trade a/c 1 a/c 1 a/c Market Maker Broker Investor a/c 1 a/c 1 Custodian

37. STOCK LENDING & COLLATERAL

39. STOCK LENDING TRANSACTIONS

40. INPUT OF STOCK Settlement Instruction Settlement Instruction Settlement Instruction

41. SETTLEMENT OF A STOCK LOAN Create payment Obligations Lender’s Bank Intermediary Bank Borrower’s Bank Registrar Stock Stock Cash Cash SLO1 - Settled SLO2 - Settled SLR1 - Created SLR2 - Created RURs for SLO1 & SLO2 Create payment Obligations Lender’s Account Intermediary’s Account Borrower’s Account CMA CMA CMA

42. SETTLEMENT OF A STOCK LOAN RETURNS Lender’s Bank Intermediary Bank Borrower’s Bank Registrar Stock Stock Cash Cash SLR1 - Settled SLR2 - Settled RURs for SLR1 & SLR2 Create payment Obligations Create payment Obligations Intermediary Member Borrowing Member Raise priority of SLR1 Raise priority of SLR2 Lender’s Account Intermediary’s Account Borrower’s Account CMA CMA CMA

46. CROSS BORDER

52. SETTLEMENT FLOWS

57. RECONCILIATION

61. THANK YOU