Securities Direct Payout Postponed: MIIs Face Delays
By Rediff Money Desk, New Delhi Nov 12, 2024 20:01
Market infrastructure institutions have put on hold the direct payout of securities to demat accounts due to delays encountered during the initial beta phase. The new system was meant to improve settlement for investors.
New Delhi, Nov 12 (PTI) Market infrastructure institutions (MIIs), including clearing corporations and depositories, on Tuesday decided to put on hold the direct payout of securities to clients' demat accounts after encountering "certain delays" during the initial beta phase.
In the new direct-payout system, clearing corporations will transfer securities directly to investors' accounts, unlike the current system where brokers first hold securities in a pooled account before passing them on to clients.
The initial beta phase of the direct pay-out settlement was launched on Monday, November 11 to improve the settlement process for investors.
While the new system has largely been successful, "certain delays" were observed in some cases during the beta phase, MIIs said in a statement.
"In light of the above, it has been decided to temporarily move the direct pay-out settlement to the erstwhile clearing member pool settlement mechanism effective Tuesday, November 12, 2024," they added.
This will remain in place until further notice, and the revised launch date for the direct pay-out settlement will be announced soon.
The MIIs remain committed to a smooth transition towards a fully optimised direct pay-out settlement mechanism.
Last month, Sebi extended the deadline to implement guidelines mandating the direct payout of securities to clients' demat accounts to November 11 from October 14 scheduled earlier.
In the new direct-payout system, clearing corporations will transfer securities directly to investors' accounts, unlike the current system where brokers first hold securities in a pooled account before passing them on to clients.
The initial beta phase of the direct pay-out settlement was launched on Monday, November 11 to improve the settlement process for investors.
While the new system has largely been successful, "certain delays" were observed in some cases during the beta phase, MIIs said in a statement.
"In light of the above, it has been decided to temporarily move the direct pay-out settlement to the erstwhile clearing member pool settlement mechanism effective Tuesday, November 12, 2024," they added.
This will remain in place until further notice, and the revised launch date for the direct pay-out settlement will be announced soon.
The MIIs remain committed to a smooth transition towards a fully optimised direct pay-out settlement mechanism.
Last month, Sebi extended the deadline to implement guidelines mandating the direct payout of securities to clients' demat accounts to November 11 from October 14 scheduled earlier.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Thinkink Picturez
- 1.94 (+ 4.86)
- 69820171
- Rajnish Wellness
- 1.78 (+ 4.09)
- 54627483
- G G Engineering
- 1.80 (+ 1.12)
- 53423097
- GTL Infrastructure
- 2.32 ( 0.00)
- 34510899
- Vodafone Idea L
- 8.10 ( -0.25)
- 34418651
MORE NEWS
NHAI Arm Raises Rs 775 Cr via Green Bonds for...
DMEDL, an NHAI subsidiary, has raised Rs 775 crore through green bonds for sustainable...
Water Security: Industries Must Adopt Reuse,...
Tourism Minister Shekhawat stresses reuse and recycling for water security at Rising...
India: Global Firms Keen on Setting Up Bases -...
Commerce Minister Piyush Goyal highlights India's attractiveness to global firms,...