Sebi proposes easing rules on handling unpaid client securities framework | Markets News

At current, unpaid securities are required to be transferred to a separate client account or pledged in favour of brokers, with strict timelines for both launch to shoppers upon cost or liquidation in case of default. These provisions have been launched earlier to stop misuse of client property and guarantee segregation of securities.

The newest proposals intention to revisit these norms to make the system extra environment friendly whereas sustaining safeguards for buyers.

The modifications are aimed toward streamlining present processes and lowering operational complexity in coping with securities that stay unpaid after trades.

The transfer is a part of a sequence of session papers issued by Sebi in current months to simplify regulatory frameworks, get rid of redundancies, and enhance compliance ease throughout market contributors.