Market Infrastructure Institutions Put Direct Payout on Hold
Market infrastructure institutions have temporarily halted the direct payout of securities to clients' demat accounts after facing delays during the beta phase. The decision reverts to the previous clearing member pool system, with an announcement on the revised launch date expected soon.
- Country:
- India
Market infrastructure institutions (MIIs) announced on Tuesday a suspension of the direct payout of securities to clients' demat accounts owing to delays experienced in the new system's beta testing phase.
The innovative direct-payout mechanism, initiated on November 11, aimed to streamline the process by allowing clearing corporations to transfer securities directly to investors' accounts, bypassing brokers' pooled accounts.
Despite partial success, encountered delays prompted MIIs to revert temporarily to the traditional clearing member pool settlement approach, effective November 12, 2024, until further notice. MIIs pledge a seamless transition to a fully optimized direct payout system, with a new launch date pending announcement.
(With inputs from agencies.)