The Securities and Exchange Board of India (SEBI) on August 18, 2022, amend Block Mechanism in Demat account of clients undertaking sale transactions with Sebi, vide circular no. CIR/HO/MIRSD/DOP/P/CIR/2021/595 dated July 16, 2021, introduced a blocking mechanism in the Demat account of clients undertaking sale transactions, for ease of operations in the Early Pay-in mechanism.
With the extensive consultation with Depositories, Clearing Corporations, and Stock Exchanges, and considering the benefits of the blocking mechanism, it is decided to amend clause 5 as given
"5. The facility of block mechanism shall be mandatory for all Early Pay-In transactions."
All other provisions in the circular dated July 16, 2021, shall continue to remain applicable.
This circular shall be applicable with effect from November 14, 2022.
[Circular No. SEBI/HO/MIRSD/DoP/P/CIR/2022/109]
