Extension of timeline for implementation of SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75 dated June 05, 2024
Summary
This circular extends the effective date for the direct payout of securities to clients' demat accounts from October 14, 2024, to November 11, 2024. The extension is granted to ensure smooth implementation following delays in issuing operational guidelines by Clearing Corporations and consultations with market participants. Stock Exchanges, Depositories, and Clearing Corporations are directed to notify members, implement necessary systems, and amend their bye-laws accordingly.
Text
SEBI mandated pay-out of securities directly to the client’s demat account to protect client’s securities as part of enhancement of operational efficiency and risk reduction.
It has been decided that the circular shall come into effect from November 11, 2024, in order to ensure smooth implementation of pay-out of securities directly to the client’s demat account.
Stock Exchanges, Depositories and CCs are directed to bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites.
Stock Exchanges, Depositories and CCs are directed to put in place appropriate systems and procedures to ensure compliance of the provisions of this circular.
Stock Exchanges, Depositories and CCs are directed to make necessary amendments to the relevant Bye-laws, Rules and Regulations for the implementation of the above decision.
This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, and Section 19 of Chapter IV of the Depositories Act, 1996.
Source: SecMarx — Extension of timeline for implementation of SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75 dated June 05, 2024. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.