New rules: Market regulator SEBI has announced new rules related to demat account.
SEBI New rules: First of all, let us tell you what is the meaning of payout from a demat account. If you withdraw money by selling any of your shares or other instruments bonds etc. and transfer it to the bank account, then this process is called payment payout. Many times money remains in your demat account and you do not use it, then it reaches your bank account again through the clearance service. This service is also called demat payout. SEBI has changed the rules related to this.
Market regulator SEBI on Thursday extended the deadline for implementing the guideline regarding direct pay-out of securities in the client’s demat account to November 11. Earlier this rule was to be implemented from October 14. Under the Direct Pay Out System, Clearing Corporations (CCs) transfer securities directly to the investors’ accounts; this new system is yet to be implemented.
On June 5, SEBI issued a circular requiring clearing corporations (CCs) to credit paid out securities directly into the client’s demat account to improve operational efficiency and minimise risks.
Currently, the clearing corporation credits the payout of securities to the pool account of the broker, which then credits it to the demat account of the respective client.
What is the guideline
The payout time has been changed from 1:30 pm to 3:30 pm, which will ensure that the securities are credited to the clients’ accounts on the same day instead of a day after the payout from the exchange. The final operational guidelines were to be issued to the market by the CCs by August 5. However, the guidelines were issued by the CCs in late August after consultations in the Brokers Industry Standards Forum (Brokers’ ISF).
After a review meeting and representations from the Brokers Forum, Sebi has extended the implementation date to November 11 to ensure a transition without market disruption, according to a circular issued on Thursday. In a separate circular, Sebi announced changes in the timing of payout of securities under T+1 rolling settlement.
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