Sebi Extends Deadline for Direct Securities Pay-Out to Clients

The Securities and Exchange Board of India (Sebi) has postponed the implementation of guidelines requiring securities to be directly credited to clients' demat accounts to November 11, 2023. These guidelines aim to improve operational efficiency and minimize risk. The extension follows consultations and feedback from industry stakeholders.

The Securities and Exchange Board of India (Sebi) has announced an extension for implementing guidelines that mandate direct securities pay-outs to clients' demat accounts. Initially set for October 14, the new deadline is now November 11, allowing a smoother transition in the market.

Introduced on June 5, Sebi's circular requires Clearing Corporations to credit securities directly to clients' accounts, rather than passing through brokers' pool accounts. The change aims to boost operational efficiency and minimize associated risks.

After discussions in the Brokers' Industry Standards Forum and reviews, Sebi adjusted the timeline to avoid market disruptions. Furthermore, Sebi revised the timing of securities pay-outs in the T+1 rolling settlement to ensure same-day crediting to clients' accounts.

(With inputs from agencies.)