The Central Depository Services (India) Limited (CDSL) on October 05, 2024, issued a notification regarding enhancement of operational efficiency and Risk Reduction Direct Pay-Out to Client Demat Accounts.
The following has been stated: -
•The SEBI and CDSL have issued guidelines to enhance operational efficiency and risk reduction by allowing direct pay-outs of securities to client demat accounts. This aims to streamline the process for Trading Members (TMs) and Clearing Members (CMs).
•Trading Members (TMs) and Clearing Members (CMs) must maintain specific accounts, including TM Pool Accounts, CM Pool Accounts, Client Unpaid Security Pledge Accounts (CUSPA), and Client Securities Margin Funding Accounts (CSMFA).
•Direct pay-out transactions will be rejected if these accounts are not maintained, and specific procedures are required for successful crediting when Standing Instructions are not confirmed.
•TMs and CMs can generate reports (DPC9 and DP97) to monitor transaction details and pay-outs. Any failures in pay-outs will be communicated to Clearing Corporations (CCs) for necessary corrective actions.
•The schedule for the live release of these changes will be communicated separately. DPs are advised to disseminate this information to their TMs for compliance and smooth operation.
The detailed notification is given in the document below.
[Notification No. CDSL/OPS/DP/SETT/2024/589]
