Thursday June 26 2025
News Source: Global Exchanges
Focus: Clearing & Settlement
Type: General
Country: India
On 20th June 2025, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) published joint press release in reference to SEBI Circular No. SEBI/HO/MIRSD/MIRSDPoD1/P/CIR/2024/75 dated June 05th, 2024, regarding “Enhancement of Operational Efficiency and Risk Reduction – Payout of Securities Directly to Client Demat Account.”
In line with SEBI’s ongoing efforts to strengthen investor protection and enhance settlement efficiency, a Direct Payout Mechanism has been introduced for Payout of Securities directly to Client Demat Account. Previously, securities received by clients during the payout process were first credited to the Trading Members’ pool account and subsequently transferred to the respective clients’ demat accounts. Under the newly introduced framework, securities payout is being directly credited to investors validated primary demat accounts.
It is imperative that all demat accounts uploaded in the Exchange Unique Client Code (UCC) database belong to the first holder of the demat account which must be active and valid. It may be noted that UCCs where primary demat accounts are not validated in the Capital Market segment shall not be permitted to trade in the said segment with effect from July 7, 2025.
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