Direct securities transfer to clearing corporation streamlines tender-offer settlements and enables direct payouts to shareholders. Direct transfer of shares using the early pay-in mechanism requires shareholders' securities to be moved to the Clearing Corporation prior to bid placement; depositories must supply investor PAN, demat and bank details to the CC. The CC will apply such securities to settlement, return unaccepted shares directly to shareholders, and make direct funds payouts for accepted shares to shareholders' bank accounts, with rejected transfers routed to the seller broker's accounts for onward transfer.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Direct securities transfer to clearing corporation streamlines tender-offer settlements and enables direct payouts to shareholders.
Direct transfer of shares using the early pay-in mechanism requires shareholders' securities to be moved to the Clearing Corporation prior to bid placement; depositories must supply investor PAN, demat and bank details to the CC. The CC will apply such securities to settlement, return unaccepted shares directly to shareholders, and make direct funds payouts for accepted shares to shareholders' bank accounts, with rejected transfers routed to the seller broker's accounts for onward transfer.
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