Delhi HC: Meta Directed to Remove Obscene Photos of Minor Girl  ||  Cal. HC: To Convict Person u/s 304B of IPC, Conclusive Proof of Cruelty before Death Required  ||  Kerala HC: Can Admit Unregistered Sale Agreements as Evidence in Specific Performance Suits  ||  Cal. HC: Can’t Allow Rectification in DOB of Employee When Age Determined through Statutory Purpose  ||  Cal. HC: Can’t Generally Use Public Exchequer Funds with Official Liquidator for Welfare of Employee  ||  Delhi HC: Can’t Reject Plaint Due to Arbitration Clause Unless Application u/s 8 is Filed  ||  Telangana HC Strikes Down State Government’s Decision to Allot Land to Arbitration Centre  ||  Karnataka HC: Salvation of the Country Lies in Identifying Human Beings as a Human Being  ||  SC Allows Stone Crusher Operation Issue to be Raised in Kerala High Court  ||  SC Set to Hear Plea Challenging Policy of Uniform Pricing for Consular Passport and Visa Services    

Block Mechanism in demat account of clients undertaking sale transactions - Clarification- (Securities and Exchange Board of India) (27 Oct 2022)

MANU/SSMD/0043/2022

Capital Market

1. SEBI, vide circular no. CIR/HO/MIRSD/DOP/P/CIR/2022/595 dated July 16, 2021, introduced block mechanism in the demat account of clients undertaking sale transactions, for ease of operations in Early Pay-in mechanism. The mechanism was introduced on optional basis.

2. Subsequently, vide circular no. SEBI/HO/MIRSD/DoP/P/CIR/2022/109 dated August 18, 2022, SEBI made the facility of block mechanism mandatory for all Early Pay-In transactions by amending clause 5 of circular dated July 16, 2021 as under:

"5. The facility of block mechanism shall be mandatory for all Early Pay-In transactions."

3. In view of the representations received from Depositories and Custodians, it is clarified that the block mechanism shall not be applicable to clients having arrangements with custodians registered with SEBI for clearing and settlement of trades.

4. All other provisions in the SEBI circular dated August 18, 2022 and SEBI circular dated July 16, 2021 shall continue to remain applicable.

5. Depositories and Clearing Corporations shall put in place appropriate systems to ensure compliance of the provisions of this circular.

6. Stock Exchanges and Depositories are directed to:

a. bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites;

b. make necessary amendments to the relevant Bye-laws, Rules and Regulations for the implementation of the above decision.

c. communicate to SEBI, the status of the implementation of the provisions of this circular on November 15, 2022 and in their Monthly Development Reports.

7. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

Tags : BLOCK MECHANISM   DEMAT ACCOUNT   CLARIFICATION  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved