The Securities and Exchange Board of India (SEBI) on May 09, 2024, issued a draft circular for Public Comments on the Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to the client Demat account.
Currently, the clearing corporation credits the pay-out of securities in the pool account of the broker, who then credits the same to the respective client Demat accounts. Further, a facility of direct delivery to investors was introduced vide circular SMDRP/Policy/Cir-05/2001 dated February 01, 2001. Now, in a move to enhance operational efficiency and reduce the risk to clients’ securities, it has been deliberated to make the process of direct payout of securities to the client account mandatory.
Draft circular on “Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client Demat account” is placed in Annexure A.
The comments/ suggestions should be submitted latest by May 30, 2024, through the following link:
https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes
In case of any technical issue in submitting your comment through the web-based public comments form, you may write to [email protected] with the subject: "Public comments on Draft Circular - Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client Demat account”.
[Circular No. SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/XXX]
