The decisions were taken by the working group on depositories which met on Wednesday. It was also decided to consider expanding the list of 10 securities where all investors have been asked to trade only demat shares from January 4 onwards and a meeting to this effect has been convened on October 20.

Of the 110 scrips identified for mandatory institutional demat trading, the diktat is effective in case of 50 securities while the remaining 60 will be part of the directive from October 15 onwards.

With the fresh addition almost all the top companies and more so most of those offering the dematfacility would have been covered under mandatory demat trading for institutions provision of Sebi.

It was also decided to consult stock exchanges for making it mandatory for brokers to rectify bad delivery shares only in demat form and also make it mandatory for brokers who have a history of introducing bad delivery stock to deliver shares only in the demat form.

To give a further boost to demat delivery, custodians will also be asked to make prompt payment in respect of shares received by them fully in the demat form.

It was decided that delivery of demat shares will be treated as good delivery for negotiated deals also. Besides, institutional investors should compulsorily settle trades executed as negotiated deals in demat form with respect to securities where they have been mandated to trade only in demat shares.

The list of 125 securities includes, Balrampur Chini, Burroughs Wellcome, E Merck, Finolex Cables, Global Trust Bank, Godrej Soaps, Hotel Leelaventures, Ingersoll Rand, Nicholas Piramal,Novartis, P&G, Rhone Poulenc, Sesa Goa, Voltas Ltd, Wockhardt, Blow Plast, EID Parry, Himatsingka Seide, Usha India, Essel packaging, Indian Shaving Products, Parke Davis, Reckitt & Colman, Smithkline Beecham, Smithkline Pharma, Swaraj Engines, Tata Hydro, Zee Telefilms, ONGC, Aptech, Cipla, Coates Viyella, Eicher Ltd, Eicher Motors, federal bank, HCL Infosystems, Hoechst Marrion, Ispat Industries, ITW Signode, Marico Industries, RPG Telecom, Sundaram Clayton, Tata Infotech and Vysya Bank.