SEBI/HO/MIRSD/MIRSD - PoD1/P/CIR/2024/136 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MIRSD/MIRSD - PoD1/P/CIR/2024/136 October 10, 2024 To, All recognized Stock Exchanges and Clearing Corporations All Depositories Madam / Sir, Sub: Extension of timeline for implementation of SEBI Circular SEBI/HO/MIRSD/MIRSD -PoD1/P/CIR/2024/75 dated June 05, 2024 In order to protect client's securities as part of enhancement of operational efficiency and risk reduction, SEBI vide circular SEBI/HO/MIRSD/MIRSDPoD1/P/CIR/2024/75 dated June 05, 2024 mandated pay-out of securities directly to the client's demat account. The circular was to come in to effect from October 14, 2024. In this regard, the final operational guidelines/implementation standards were to be issued by CCs to the market by August 05, 2024. However, the said guidelines were issued by CCs at the end of August 2024 on account of extensive consultation in Brokers' Industry Standards Forum (Brokers' ISF). Further, based on the review meeting held by SEBI with MIIs and based on representation received from Brokers' ISF, it has been decided that the circular shall come into effect from November 11, 2024, in order to ensure smooth implementation of pay-out of securities directly to the client's demat account, without any disruption to the markets players and investors. Stock Exchanges , Depositories and CCs are directed to: 3.1.bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites; 3.2.put in place appropriate systems and procedures to ensure compliance of the provisions of this circular; 3.3.make necessary amendments to the relevant Bye-laws, Rules and Regulations for the implementation of the above decision; This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities a