Direct payout of securities now mandatory to credit client demat accounts with auto-pledge for margin-funded stocks, enhancing client protection. SEBI mandates direct payout of securities by Clearing Corporations to respective clients' demat accounts; funded stocks under margin trading must be held only by pledge in a separate demat account tagged 'Client Securities under Margin Funding Account' and, upon transfer to client accounts, followed by an auto-pledge without specific client instruction. CCs must identify unpaid and funded securities; unpaid securities follow Master Circular processes. Internal shortages from inter se netting are to be resolved through CC-specified auctions with no additional broker charges to clients. Custodian-arranged clients are excluded.
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Direct payout of securities now mandatory to credit client demat accounts with auto-pledge for margin-funded stocks, enhancing client protection.
SEBI mandates direct payout of securities by Clearing Corporations to respective clients' demat accounts; funded stocks under margin trading must be held only by pledge in a separate demat account tagged 'Client Securities under Margin Funding Account' and, upon transfer to client accounts, followed by an auto-pledge without specific client instruction. CCs must identify unpaid and funded securities; unpaid securities follow Master Circular processes. Internal shortages from inter se netting are to be resolved through CC-specified auctions with no additional broker charges to clients. Custodian-arranged clients are excluded.
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