The Central Depository Services (India) Limited (CDSL) on May 23, 2024, issued clarifications on the Handling of Clients’ Securities by Trading Members (Tm) / Clearing Members (Cm).
The clarifications state the following:
• If the client fulfills his/her funds obligation within five trading days after the pay-out, TM/CM can release the pledge within five trading days after the pay-out so that the securities are available to the client as a free balance.
• If the client does not fulfill its funds obligation, TM / CM shall dispose of such unpaid securities in the market within five trading days after the payout and can invoke the pledge within five trading days after the payout.
• In case, such a pledge is neither invoked nor released, the pledge on securities shall be auto-released at EOD of the seventh trading day after the pay-out and the securities shall be available to the client as a free balance without encumbrance.
[Notification No. CDSL/OPS/DP/SETTL/2024/279]
