SEBI’s new regulations mandate that securities pay-outs be credited directly to clients’ demat accounts by Clearing Corporations (CCs) to enhance operational efficiency and reduce risk. This change, effective from October 14, 2024, addresses the current practice where securities are pooled by brokers before being credited to clients. CCs will also provide mechanisms for handling unpaid securities and funded stocks under margin trading facilities. These measures, following extensive industry discussions and as stated aim to streamline processes, prevent misuse of client securities, and ensure compliance across the market. Stock Exchanges, Depositories, and CCs must update their systems and report implementation progress to SEBI.
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