To protect client’s securities as part of enhancement of operational efficiency and risk reduction, SEBI vide circular dated June 05, 2024 mandated pay-out of securities directly to the client’s demat account. The circular was to come in to effect from October 14, 2024.
In this regard, the final operational guidelines/implementation standards were to be issued by CCs to the market by August 05, 2024. However, the said guidelines were issued by CCs at the end of August 2024 on account of extensive consultation in Brokers’ Industry Standards Forum (Brokers’ ISF).
Further, based on the review meeting held by SEBI with MIIs and based on representation received from Brokers’ ISF, 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 client’s demat account, without any disruption to the markets players and investors.
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