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TMI BlogEnhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat accountX X X X Extracts X X X X X X X X Extracts X X X X ..... nd Risk Reduction - Pay-out of securities directly to client demat account 1. SEBI, vide Master Circular for Stock Brokers dated May 22, 2024 , inter alia, specified various processes for handling of clients securities with regard to pay-in and pay-out of securities. This is to protect clients securities and to ensure that the stock broker segregates securities of the client or clients so that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o discussed in the meeting of Intermediary Advisory Committee and with Broker s Industry Standards Forum (ISF), which comprise of industry representatives. Accordingly, after extensive deliberations, the following has been decided: 4.1. The securities for pay-out shall be credited directly to the respective client s demat account by the CCs. 4.2. CCs shall provide a mechanism for Trading Member(TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions shall be permitted. Such funded stocks shall be transferred to respective client s demat account followed by creation of an auto-pledge (i.e., without the requirement of a specific instruction from the client) with suitable reason, in favor of Client Securities under Margin Funding Account . Handling of shortages arising due to inter se netting of positions between clients: 5. In case of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Broker s Industry Standards Forum (on a pilot basis), under the aegis of the stock exchanges and in consultation with SEBI by August 05, 2024. 9. Stock Exchanges, Depositories and CCs are directed to: 9.1. bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites; 9.2. put in place appropriate systems and procedures t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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