Auto-pledge of unpaid securities enables members to transfer, notify and sell unpaid holdings if funds remain unmet within prescribed days. All securities received in pay-out must be transferred from the member's pool account to the client's demat account within one working day. Unpaid securities shall be transferred to the client's demat account and auto-pledged with reason 'unpaid' in favor of a separate client unpaid securities pledgee account opened by the member. Members must notify clients of funds obligations; if funds are not furnished within five trading days the member may sell the securities using the client's UCC with profit/loss adjusted to the client's account. Pledges not invoked or released within seven trading days shall be auto-released.
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.
Auto-pledge of unpaid securities enables members to transfer, notify and sell unpaid holdings if funds remain unmet within prescribed days.
All securities received in pay-out must be transferred from the member's pool account to the client's demat account within one working day. Unpaid securities shall be transferred to the client's demat account and auto-pledged with reason "unpaid" in favor of a separate client unpaid securities pledgee account opened by the member. Members must notify clients of funds obligations; if funds are not furnished within five trading days the member may sell the securities using the client's UCC with profit/loss adjusted to the client's account. Pledges not invoked or released within seven trading days shall be auto-released.
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