The Securities and Exchange Board of India (SEBI) on Thursday extended the deadline to mandatorily implement direct payout of securities to clients’ demat accounts to November 11 from October 14.
The extension follows a review meeting and representations from the brokers’ forum, and the move was to ensure a smooth transition without market disruptions, SEBI said in a circular.
This mandate will discard the current system where the clearing corporation credits the payout of securities in the pool account of the broker, who then credits the same to the respective client’s demat accounts.
In a separate circular, the markets regulator tweaked the timing of securities payout under the T+1 rolling settlement.
The payout time has been changed from 1.30 pm to 3.30 pm, ensuring that securities be credited to clients’ accounts on the same day, rather than one day after the payout from the exchange.