Update under SEBI as on 21st June 2019.

Handling of Clients’ Securities by Trading Members/Clearing Members
In order to protect clients’ funds and securities, The Securities Contracts (Regulation) Act, 1956 and Securities and Exchange Board of India (Stock-Brokers) Regulations, 1992 specifies that the stock broker shall segregate securities or moneys of the client or clients or shall not use the securities or moneys of a client or clients for self or for any other client.
The various circulars were issued by SEBI from time to time detailing the operational modalities with respect to handling of client’s funds and securities by stock broker (hereinafter referred to as ‘Trading Member /Clearing Member’ or TM/CM).
Opening and reporting of Demat Accounts by TM/CM
In order to implement the various circulars , the following course of action shall be taken by TM/CM:
All the existing client securities accounts opened by the TM/CM other than ‘Pool account’( including ‘Early Pay-in’),‘Client Margin Trading Securities account’ and ‘Client collateral account’ shall be wound up on or before August 31, 2019.The TM/CM shall within one week of closure of existing client accounts, inform the Stock Exchange/s the details in the following format.

TM/CM shall open the unpaid securities account latest by August 31, 2019 and inform the details of the same to the respective Stock Exchanges / Clearing Corporations within one week of opening of the unpaid securities account in the following format:

Any non-compliance/non reporting in this regard by the TM/CM shall attractpenal action as per the bye-laws of Stock Exchanges.Monitoring with respect to handling of clients securities  
Stock Exchanges, Clearing Corporations and Depositories shall put in place a mechanism for monitoring of the following: a) Handling of unpaid clients’ securities by the TM/CM – Mechanism of matching of transfer of securities with the securities obligation as obtained from the clearing corporation with respect to the following: i. Securities transferred from the client unpaid securities account to the pool account ii. Securities transferred from the client unpaid securities account to the concerned client account, iii. Securities transferred from pool account to the concerned client account b) All the DP accounts tagged as “Stock Broker – Client Account” are wound up before August 31, 2019. c) Securities lying with TM/CM in client collateral account, client margin trading securities account and client unpaid securities account shall not be permitted to be pledged/transferred to Banks/NBFCs for raising funds by TM/CM.
Unless otherwise specified in the circular the provisions of this circular shall come into effect on September 01, 2019. Any non-compliance of the provisions issued under this circular shall attract the penalty and other enforcement action as may be laid down by Exchanges, Clearing Corporations, Depositories and SEBI. 
The Stock Exchanges, Clearing Corporations and Depositories are advised to:a. Bring the provisions of this circular to the notice of all TM/CM, Depository Participants along with illustration as required and also disseminate the same on their respective websites.b. Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of this circular in co-ordination with one another to achieve uniformity in approach. c. communicate to SEBI, the status of the implementation of the provisions of this circular in their Monthly Development Reports.