The Hindu Business Line : SEs asked to allot unique client codes to MFs, FIIs

CLOSE on the heels of T+2 rolling settlement coming into effect from April 1, the Securities and Exchange Board of India has directed all the stock exchanges to generate a unique client code for mutual funds and each scheme of a mutual fund, foreign institutional investors (FIIs) and their sub-accounts.

However, the generation of unique client code requires amendments to the bylaws and rules and regulations. The implementation of SEBI directives also required the exchanges to put in place adequate systems and carry out software changes.

Keeping this in view, the market regulator has granted three months time to the stock exchanges to implement the system of unique client codes. "Till such time, the present practice of putting client IDs at the time of order entry in case of FIIs and mutual funds shall continue," SEBI advised the stock exchanges.

Meanwhile, the regulator has directed the exchanges to make necessary amendments to the bylaws and rules and regulations for the implementation of its directives at the earliest. The exchanges were also directed to bring the provisions of this circular to the notice of its member brokers and clearing members and also disseminate the same on the website for easy access to the investors.

With all the major participants such as stock exchanges, depositories and market participants at the meeting with SEBI held on March 24 expressing their preparedness in implementing T+2 rolling settlement, the new settlement has come into effect from April 1.

Article E-Mail :: Comment :: Syndication

Stories in this Section
L&T clinches $100-m deal in W. Asia

Forex reserves up $984 m on more inflows

Durgapur Steel to see profit again, after 28 years

Jalan moots 5 steps to strengthen banks

RBD palmolein import at lower duty ruled out — Finance Ministry no to States' proposal

SEs asked to allot unique client codes to MFs, FIIs