The Indian Clearing Corporation Limited, (ICCL) on September 02, 2024, issued a notification regarding Enhancement of operational efficiency and Risk Reduction – Operating guidelines for the Pay-out of securities directly to client demat account.
SEBI and ICCL have issued guidelines for the operational efficiency and risk reduction related to the direct pay-out of securities to client demat accounts. Trading members must now update the primary demat account in the UCC database of exchanges for all clients, and the clearing corporation will credit securities to the primary demat account identified and verified by the depositories. Additionally, trading members in the Equity & F&O segments are required to open specific Trading Member Pool Accounts and maintain Client Unpaid Security Pledge Accounts (CUSPA) and Client Securities under Margin Funding Accounts (CSMFA) in both depositories, depending on their role and services offered.
Furthermore, the current direct pay-out facility to investor accounts will be discontinued, as per SEBI's recent circular. Detailed operational guidelines and procedures for these updates, including the reporting of unpaid securities and funded stocks, are provided in the attached annexures. Trading members and clearing members must comply with these new requirements by following the specific instructions outlined in the respective annexures attached.
[Notification No. 20240902-8]
