The Central Depository Services (India) Limited (CSDL) on September 18, 2023, issued a notification regarding the Framework for Restricting Trading by Designated Persons by Freezing Pan at the Security Level.
This has a reference to SEBI Circular No. SEBI/HO/ISD/ISD-PoD-2/P/CIR/2023/124 dated July 19, 2023, and CDSL communique nos. CDSL/OPS/DP/POLCY/2023/417 dated July 19, 2023, CDSL/OPS/DP/POLCY/2022/549 dated September 26, 2022, regarding the Trading Window closure period.
The following has been stated namely: -
• The Timelines for phase-wise implementation of the framework have been attached to Table
• It states that The functionality is applicable to the Companies only for equity ISINs that are/were part of NIFTY50 or SENSEX30 indices and currently extended to TOP 1000 companies in terms of BSE Market Capitalization as of June 30, 2023.
• The Demat accounts where the first holder PAN is of a non-designated person, but the joint holder PAN is of the designated person, the specific ISIN in the identified demat account will be frozen for both i.e. debit and credit at the BO-ISIN level.
• The freeze reason code no. “25“and reason description “Trading Window Closure Period" will be used for this BO-ISIN level freeze in CDSL depository systems.
• It states that During the freeze period, no debit or credit will be allowed in the demat account of the designated persons for the specified ISIN as stated.
• Any trades done prior to the “No trading window period” should be settled by way of giving early paying instruction in favor of their CM on the trade date i.e. T day itself.
• The Demat accounts of designated persons who are provided with exemptions will be unfreeze on the Start of the day of the exemption start date and will be again frozen on the End of date of the exemption end date.
• It further states that the Trading window closure freeze exemption end date should be after 2 days from the last exempted trade date on exchanges.
[Circular No. CDSL/OPS/DP/POLCY/2023/549]
