The Central Depository Services (India) Limited (CDSL) on November 06, 2024, notified regarding the enhancement of operational efficiency and risk reduction direct pay-out to client demat accounts.
The following has been stated namely: -
• DPs are advised that for direct payout of securities to client demat accounts, no OTP consent is required for MTF clients, with securities auto-pledged in favor of the TM/CM Client Securities Margin Funding account.
• If the payout is rejected, the securities will remain in the CC Pool account and later transferred to the CM Pool account, with OTP required for MTF pledge creation.
• If there's no standing instruction in the client’s demat account, the payout will be rejected and credited to the CM Pool account, with a transfer to the client’s demat account following the submission of a ‘receipt instruction’.
• The functionality of direct payout to the client demat account will be implemented with effective from November 11, 2024.
[communiqué no. - CDSL/OPS/DP/SETT/2024/669]
