TaxTMI 
TaxTMI 
Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account
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...., Sub: Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account 1. SEBI, vide Master Circular for Stock Brokers dated May 22, 2024, inter alia, specified various processes for handling of clients' securities with regard to pay-in and pay-out of securities. This is to protect clients' securities and to ensure that the stock broker segre....
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....ing Corporations (CCs) and Depositories. The proposal was also discussed in the meeting of Intermediary Advisory Committee and with Broker's Industry Standards Forum (ISF), which comprise of industry representatives. Accordingly, after extensive deliberations, the following has been decided: 4.1. The securities for pay-out shall be credited directly to the respective client's demat account by t....
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....nded stocks in respect of margin funding shall be kept/ transferred, and no other transactions shall be permitted. Such funded stocks shall be transferred to respective client's demat account followed by creation of an auto-pledge (i.e., without the requirement of a specific instruction from the client) with suitable reason, in favor of 'Client Securities under Margin Funding Account'." Handlin....
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....ular shall come into force with effect from October 14, 2024. 8. The implementation standards shall be formulated by the Broker's Industry Standards Forum (on a pilot basis), under the aegis of the stock exchanges and in consultation with SEBI by August 05, 2024. 9. Stock Exchanges, Depositories and CCs are directed to: 9.1. bring the provisions of this circular to the notice of their mem....