The Hindu Business Line : SEBI fiat to brokers on scrips' transfer

THE Securities and Exchange Board of India (SEBI) has clarified that stock brokers and clearing members should transfer securities to their clients' beneficiary accounts within one working day after payout day. The securities lying in the pool account beyond the stipulated one-day will attract a penalty at the rate of six basis points per week on the value of securities, stated the SEBI circular.

The exchanges have also been asked to clear and settle the trades on a sequential basis. This means that the pay-in and the payout of the first settlement would be completed before the commencement of the pay-in and payout of the subsequent settlements. The payout from the first settlement would be available to the broker for meeting pay-in obligations for the subsequent settlements.

Further, depositories have been asked to facilitate the inter-depository transfers within one hour and before pay-in for the subsequent settlement begins.

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