In October, Sebi widened the scope of the Demat Debit and Pledge Instruction (DDPI) for pledging and repledging of securities for margin functions in a bid to curb the misuse of Energy of Legal professional (PoA) given by purchasers to inventory brokers.
The DDPI serves the identical objective of PoA and considerably mitigates the misuse of PoA.
With the DDPI, purchasers can explicitly conform to authorise the inventory broker and depository participant to entry their helpful homeowners’ account for the restricted objective of assembly pay-in obligations for the settlement of trades executed by them.
A shopper can use the DDPI or choose to finish the settlement by issuing a bodily Delivery Instruction Slip (DIS) or Digital Supply Instruction Slip (EDIS) themselves.
As well as, Sebi has prolonged the deadline to January 27 for the implementation of the framework on validation of directions for pay-in of securities from shopper demat account to buying and selling member pool account towards obligations obtained from the clearing firms.
The framework was to come back into impact from November 25.
Underneath it, depositories must validate the switch instruction for pay-in of securities from shopper demat accounts to buying and selling member pool accounts towards obligations obtained from the clearing firms. This ought to be achieved previous to executing precise switch of the securities for pay-in from shopper demat account to buying and selling member pool account.
