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

Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account

05-Jun-2024 | SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75

SEBI has issued circular on Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account. By virtue of circular, the process of securities payout directly to the client account shall now be mandatory. Amendment in para 41.9 of Master Circular for Stock Brokers dated May 22, 2024 - Securities lying in 'Client Securities under Margin Funding Account' shall not be available for pledge with any other Bank/ NBFC. This shall not be applicable to clients having arrangements with custodians registered with SEBI for clearing and settlement of trades. For more information, please refer the attachment.

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