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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL - Validation of Reason Codes While Execution of Off Market Transactions

14-Oct-2025 | CDSL/OPS/DP/SYSTM/2025/693

CDSL has issued a communique regarding the Validation of Reason Codes While Execution of Off-Market Transactions.

By virtue of this communique, CDSL has made changes in the existing validation process under the reason "Transfer of constitute shares for creation/redemption of ETF units" under the Reason Code '43'.

The Remarks under the reason code "43" have been amended, specifying that the reason code can be used for the Transfer of securities from/to the client accounts to the respective Mutual Fund for the purpose of Redemption / Creation of the Mutual Fund units and vice versa. However, both Source and target accounts cannot be Mutual Fund accounts.

Depository Participants are required to consider the same at the time of executing all transactions mentioned under this reason code only and make necessary back-office changes, and also disseminate such information to their concerned clients.

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