The National Stock Exchange (NSE) on January 16, 2025, issued the notification regarding the Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account.
The following has been stated namely: -
• In phase 2, UCCs which do not have validated primary demat account (except proprietary UCC) shall not be Permitted to trade by the Exchange
• With regards to direct pay-out, it may be noted that a client dealing exclusively in index derivatives and providing his margin through cash only may not need to have a demat account in the equity derivative segment.
• The Trading Member has to ensure that the client dealing in index derivatives does not deal in any other product which requires physical delivery and that the client pays his margin only in the form of cash.
• This would be a part of an arrangement between Trading Member and the client where a client is desirous of dealing exclusively in index derivatives and undertakes to pay his margin only in the form of cash.
[Notification No. NSE/ISC/66165]
