The Central Depository Services (India) Limited (CDSL) on December 22, 2023, issued a notification regarding the facility to remedy erroneous transfers in demat accounts.
To comply with the SEBI guidelines as stated in the mentioned SEBI circular, DPs are advised to note that effective from December 30, 2023, off-market transactions will be considered for execution ONLY IF, Demat Account of Buyer (i.e. Transferee Account) is added as a Beneficiary under the Demat Account of Seller (i.e. Transferor Account). CDSL system (CDAS) will not allow the execution of off-market transfers without the buyer account being added as a beneficiary under the seller account.
DPs are requested to take note of the mentioned operational modalities regarding the mentioned guidelines and initiate suitable changes in their back office.
DPs are requested to take note of the following schedule of releases regarding the captioned functionality:
a)CDSL has already completed the system development concerning online provision to add beneficiaries under the demat account of the seller. The same is scheduled for live release on December 22, 2023, to make it effective from December 23, 2023.
b)b) The other part of the releases including adding beneficiary through upload mechanism and execution of off-market transfers where one of the pre-requisites of validating the buyer account as ‘Beneficiary’ under the seller account is scheduled for live release on December 29, 2023, to make it effective from December 30, 2023.
[Notification No. CDSL/OPS/DP/POLCY/2023/745]
