To All Members,
Subject: Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account
This is with reference to Exchange Notice No. 20241008-32 dated October 08, 2024, on “Enhancement of operational efficiency and Risk Reduction - Pay-out of securities directly to client demat account”.
In accordance with SEBI regulations and Exchange communications, Trading Members (TM’s) are required to note that a client dealing exclusively in index derivatives and providing margin through cash only may not need to have a demat account in the equity derivative segment. In this regard, the Trading Member has to ensure that the client dealing in index derivatives does not deal in any other product which requires physical delivery and that the client pays margin only in the form of cash. This would be a part of an arrangement between Trading Member and the client where a client is desirous of dealing exclusively in index derivatives and undertakes to pay margin only in the form of cash.
Trading Members are advised to take note and comply with the above guidelines.
In case of any clarifications, members may contact us on details given as under:
For and on behalf of BSE Ltd.
Umesh Hanjankar Poonam Pisat
Deputy General Manager Manager
Investigation Investigation |