Sebi extends deadline for implementation of direct payment of securities until November 11
On June 5, the Securities and Exchange Board of India (Sebi) issued a circular requiring clearing companies (CCs) to deposit payable securities directly into customers’ Demat accounts to improve operational efficiency and reduce risk.
Currently, the clearing company deposits the payout of the securities into the broker’s pool account, which in turn deposits it into each client’s Demat account.
The final operating guidance was scheduled to be released to the market by CC by August 5. However, extensive consultation by the Brokers Industry Standards Forum (ISF) led to CC publishing guidance in late August.
According to a circular issued on Thursday, after a review meeting and representation at the broker forum, Sebi extended the implementation date to November 11 to ensure a smooth transition without market disruption.
The regulator, in a separate circular, announced changes in the timing of securities payment under T+1 rolling settlement. Payment times have been changed from 1:30 PM to 3:30 PM so that securities are deposited into customer accounts the same day rather than one day after exchange payment.
In Phase 1, securities payments from the equity cash segment (including net cash and F&O physical payments) will now be credited directly to the customer’s Demat account by CC.
