Deadline For Direct Demat Payout Extended To...

October 11, 2024 09:49

Khushboo Tiwari/Business Standard

Sebi on Thursday extended the deadline to implement direct payout of securities to demat account from October 14 to November 11 to ensure a hassle free implementation.

The market regulator took this decision after getting representation from key institutions like clearing corporations, exchanges and stock brokers.

'Based on the review meeting held by Sebi with MIIs (market infrastructure institutions) and based on representation received from Brokers' ISF (industry standards forum), it has been decided that the circular shall come into effect from November 11, 2024, in order to ensure smooth implementation of pay-out of securities directly to the clients demat account, without any disruption to the markets players and investors,' Sebi said in a release.

At present, the securities are credited to the broker and then transferred to the demat account of the investor by the broker.

With the changes, the securities will be directly credited to the investors demat account, reducing the role of the broker who till now held the shares till the time of transfer.

Further, the brokers will not be able to directly handle pledges for unpaid or margin-funded securities.

If the security is not paid in full, the clearing corporation will mark the pledge directly in the clients demat account until fully paid.

The extension was provided as the operational guidelines by clearing corporations were issued at the end of August instead of the earlier timeline of August 5.

The market regulator has also revised the timing of the payout from 1.30 pm to 3.30 pm under the phase-1 of the implementation.

« Back to LIVE

TOP STORIES

Maha portfolio: Fadnavis gets Home, Ajit, Shinde get...

Shiv Sena's Dadaji Bhuse is the new school education minister while Uday Samant continues to be the industries minister.

Govt tweaks election rule; why is ECI afraid, asks Cong

Based on the recommendation of the Election Commission (EC), the Union law ministry on Friday amended Rule 93(2)(a) of the Conduct of Election Rules, 1961, to restrict the type of "papers" or documents open to public inspection.

Character assassination: Allu Arjun on stampede row

Hours after Reddy slammed the actor for holding a roadshow and waving to the crowds at the theatre, without referring to anyone, the 'Pushpa 2' star refuted the allegations and said it was not a procession or a roadshow.

Trudeau in trouble as ally vows to 'bring him down'

The future of Canadian Prime Minister Justin Trudeau's leadership appears increasingly uncertain after New Democratic Party (NDP) leader Jagmeet Singh, a key ally, said he would introduce a motion to topple the minority Liberal...

Ferry passengers planned throwing kids into sea: CISF

A team of CISF marine commandos rescued dozens of passengers from a sinking tourist ferry off the Mumbai coast, preventing panicked parents from throwing their children into the sea. The commandos reached the accident site within minutes...