Edit this postThis is with reference to the SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/75 dated June 5, 2024 and subsequent exchange circulars, for Direct Payout of Securities to Client's Demat Account for Operational Efficiency and Risk Reduction. We request you to take note of the below details for your ready reference:
Direct payout of securities by the Exchanges / Clearing Corporations will start from Settlement date Feb 25, 2025 (Tuesday) for Trade date Feb 24, 2025 (Monday)
Please ensure to maintain clear credit balance in your trading account before 9:00 pm on Trading Day, so that the shares are not transferred to the CUSPA account (Client's Unpaid Securities Pledge Account).
Sell shortage Auction (for securities not delivered for Sell obligation) will be conducted by the Exchanges alone. SMC's internal shortage policy will no longer be applicable from Feb 25, 2025.
Customers who have opted for the MTF product are no longer required to do OTP-based authorizations. Authorizations will be handled by the Exchange based on the SMC's intimation to them.
Going forward from Feb 25, 2025 onwards, direct securities' payouts will be delivered by the Exchanges / Clearing Corporations to customers' primary demat account post 3:30 pm on the settlement date. We urge you to check/confirm whether the full payout of shares has been received against the previous purchase obligation(s) before initiating a Sell trade, else this will lead to auction.
Other important details to keep in your knowledge:
Payout of securities/stocks will be transferred only to the primary demat account that has been updated in the Exchanges as per your UCC. Going forward, any change in demat account details need be made on trade date before 3 PM.
These changes of direct payout will be applicable only to T+1 settlement type in Phase I , excluding Stock Lending and Borrowing Mechanism (SLBM), Tender Offers (Buy Backs / Rights Issues), and Offers For Sale (OFS).
We suggest you avoid giving physical cheques and instead make payment through Payment Gateway/SMC Web Portal to clear your outstanding ledger balance to avoid any delays in credit entry in your ledger.
In case of securities listed solely on CDSL or NSDL, customers need to be mindful of where their default demat account is marked in the Exchange's UCC database. For an example: if a customer has an NSDL demat account as the default demat account at the Exchange's UCC and buys shares that are listed solely on CDSL, then the payout of shares can't be done directly to client and shares will be credited to SMC's Pool Account and SMC will release the payout to client in accordance with their Risk management process.
For more details please refer below Circular.
