To All Members,
Sub: Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account.
This is with reference to SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75 dated June 05, 2024, Exchange Notice No. 20240605-64 dated June 05, 2024 and Exchange Notice No. 20240705-37 dated 05 Jul 2024 on “Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account”. As prescribed in point 4.1 of the above referred SEBI circular, the securities for pay-out shall be credited directly to the respective client’s demat account by the Clearing Corporations. Your attention is drawn to point 4 of the Exchange Notice No. 20231018-39 dated October 18, 2023, the Exchange had introduced indicators for marking demat and bank accounts as Primary or Secondary.
In view of the SEBI circular SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75 dated June 05, 2024, it is essential that all the eligible UCCs (across all segments) have the indication of Primary/Secondary in the demat accounts as the payouts shall be directly transferred to the demat accounts identified as Primary. Hence, all Trading Members are requested to:
1. Make relevant changes in the demat account details available in the UCC database, if any.
2. Update the Primary / Secondary indicator for demat accounts for all existing UCC details (wherever not updated).
3. Updation of the relevant fields can be done via the modification file format.
Members are requested to take note of the above guidelines and ensure all the requisite information is updated in the system latest by August 30, 2024. In case the primary indicators for demat accounts are not updated by the trading members by the timelines specified by the Exchange, records where demat account 1 is maintained then such account shall be considered as the primary account and the rest demat accounts if any, shall be considered as secondary demat account. Hence, the Exchange shall proceed to mark these demat account, respectively.
You are required to take note of the above and comply accordingly.
In case of any clarifications, members may contact us on details given as under:
Umesh Hanjankar Poonam Pisat
Deputy General Manager Manager
Investigation Investigation
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