Market infrastructure institutions (MIIs), including clearing corporations and depositories, on Tuesday decided to postpone the direct payout of securities to clients’ demat accounts after encountering “slight delays” during the initial beta phase, which was launched only on Monday to improve the settlement process.
“While the move has broadly been successful, there are slight delays in some cases where MIIs are working jointly to resolve and stabilise the ecosystem over the next few days,” the National Stock Exchange said in a notice on Tuesday.
“It has been decided to temporarily move the direct pay-out settlement to the erstwhile clearing member pool settlement mechanism, effective Tuesday,” MIIs said in a joint circular.
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Now, MIIs will go back to the previous method of crediting securities to the broker’s pooled account and then transferred to the demat account of the investor by the broker. This will remain in place until further notice, and the revised launch date for the direct pay-out settlement will be announced soon, MIIs said.
Once the changes get implemented, securities will be directly credited to the investor’s demat account, removing the broker’s role in the transaction.
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