This article analyses the recent amendment requiring Clearing Corporations (CCs) to transfer securities to client demat accounts directly. The new rule ends the practice of brokers pooling securities before crediting them to client accounts. The article covers the following key aspects:
‣ Mandatory Direct Payout Mechanism
‣ Benefits of the Direct Payout Mechanism
‣ Implementation Timeline
‣ Separate Demat Accounts for Funded Stocks Under Margin Trading
‣ Handling of Internal Shortages and Broker Charges
‣ Conclusion