CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/136 October 10, 2024
To,
All recognized Stock Exchanges and Clearing Corporations
All Depositories
Madam / Sir,
Sub: Extension of timeline for implementation of SEBI Circular
SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75 dated June 05, 2024
1. In order to protect client’s securities as part of enhancement of operational
efficiency and risk reduction, SEBI vide circular SEBI/HO/MIRSD/MIRSD-
PoD1/P/CIR/2024/75 dated June 05, 2024 mandated pay-out of securities directly
to the client’s demat account. The circular was to come in to effect from October
14, 2024.
2. In this regard, the final operational guidelines/implementation standards were to be
issued by CCs to the market by August 05, 2024. However, the said guidelines
were issued by CCs at the end of August 2024 on account of extensive consultation
in Brokers’ Industry Standards Forum (Brokers’ ISF). Further, based on the review
meeting held by SEBI with MIIs and based on representation received from
Brokers’ ISF, it has been decided that the circular shall come into effect from
November 11, 2024, in order to ensure smooth implementation of pay-out of
securities directly to the client’s demat account, without any disruption to the
markets players and investors.
3. Stock Exchanges, Depositories and CCs are directed to:
3.1. bring the provisions of this circular to the notice of their members / participants
and also disseminate the same on their websites;
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3.2. put in place appropriate systems and procedures to ensure compliance of the
provisions of this circular;
3.3. make necessary amendments to the relevant Bye-laws, Rules and Regulations
for the implementation of the above decision;
4. This circular is issued in exercise of powers conferred under Section 11(1) of
Chapter IV of the Securities and Exchange Board of India Act, 1992, and Section
19 of Chapter IV of the Depositories Act, 1996 to protect the interests of investors
in securities and to promote the development of, and to regulate the securities
markets.
5. This circular is available on SEBI website at www.sebi.gov.in under the category:
‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
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