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SEBI extended till November 11 the deadline to implement the guidelines mandating direct payment of securities into the demat accounts of investors. Under this, the clearing corporation was mandated to credit securities directly into the customer's demat account to improve operational efficiency and reduce risk.
New Delhi. The Securities and Exchange Board of India (SEBI) extended till November 11 the deadline to implement the guidelines mandating direct payment of securities into the demat accounts of investors. This rule was originally to take effect from October 14. SEBI had issued a circular on June 5. Under this, the clearing corporation was mandated to credit securities directly into the customer's demat account to improve operational efficiency and reduce risk. At present the clearing corporation deposits the payment for securities into the account of the 'Broker'.
The 'Broker' then deposits it into the demat accounts of the respective investors. In this context, the Clearing Corporation was to issue final operational guidelines by August 5. However, extensive consultation at the Brokers Industry Standards Forum (Brokers ISF) led to its release in late August. According to the circular issued on Thursday, SEBI extended the date of implementation of the rules till November 11 to ensure smooth transition in the market without any glitches after the review meeting and report of the broker forum.
Disclaimer: Prabhasakshi has not edited this news. This news has been published from PTI-language feed.
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