SEBI Extends Direct Securities Payout Deadline To November 11, 2024

The capital market regulator, the Securities and Exchange Board of India (SEBI) has announced a significant extension of the deadline for implementing direct securities payouts to clients’ demat accounts. The new deadline, now set for November 11, marks a delay from the original target of October 14. This decision comes in response to feedback from the Brokers’ Industry Standards Forum, underscoring the need for a smoother transition for all stakeholders involved in the process.

The extension follows closely on the heels of the National Stock Exchange of India Ltd. (NSE) announcing its go-live date for direct payouts under the T+1 rolling settlement system. The NSE has indicated that it will soon announce a revised rollout date in light of SEBI’s deferment.

SEBI’s circular, issued on October 11, explained that the extension was necessary to accommodate the extensive consultations and deliberations within the brokers’ forum, which led to the finalization of the clearing corporations’ operational guidelines in late August. These guidelines were originally anticipated to be available by August 5.

With the implementation of the direct payout system, SEBI has outlined that the settlement payout by exchanges and clearing corporations will be expedited to 3.30 pm, a notable improvement from the current 1.30 pm payout date (the second-day post-trade). This adjustment is expected to enhance operational efficiency and ensure that clients have timely access to their securities.

The extension of the deadline underscores SEBI’s commitment to a seamless and well-regulated transition to direct securities payouts, a move that is anticipated to streamline the settlement process and benefit market participants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.