Transfer pay-outs to client's demat account within a day, says Sebi

Regulator issues fresh guidelines for unpaid securities


Photo: Shutterstock

Khushboo Tiwari Mumbai
In a move to prevent misuse of unpaid client securities, the Securities and Exchange Board of India (Sebi) has issued new guidelines for brokers on the pay-out of such securities. The markets regulator has directed that all securities received in pay-out will have to be transferred to the client’s demat account within one working day from the pool account of trading or clearing members.

Shares that a client wants to buy are first transferred to the broker’s account from the clearing corporations. The day a buyer receives the shares from the broker is called the pay-out date.

The regulator has asked brokers to open a separate account titled client unpaid securities pledgee account to transfer unpaid securities. The securities that have not

First Published: Nov 11 2022 | 7:52 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to