SEBI’s new rule, Big step to secure shares

Have you invested in the market? Know SEBI’s new rule, this big step taken to secure shares

SEBI (Securities and Exchange Board of India) from time to time introduces new rules for protection of investors, so they do not get caught in malpractices by big corporates and broker firms and lose their hard earned money now SEBI has introduced new rule, now let’s take a look at new rule introduced by SEBI:-

SEBI new circular:¬†As of right now, the depository will only transfer the customer’s shares to the broker’s account if the instructions from the clearing organisation and the client are followed exactly. The SEBI circular shall be regarded as in effect starting on November 25, 2022.

Market regulator SEBI has made significant progress in favour of stock market investors with its recent circular. To further safeguard investor shares, SEBI has published a new rule. SEBI has published a circular to monitor share pay-in. In accordance with this, the depository will only now transfer the client’s shares to the broker’s account if the client’s instructions and those of the clearing organisation are in agreement. From November 25, the SEBI circular will be regarded as being in effect.

SEBI New Rule

The circular states that going forward, shares will only be transferred if the client’s net delivery obligation has been met. For this, it will be determined whether the client has provided the instruction directly, through a representative authorised by him, or whether there is a demat debit or pledge instruction. The delivery obligation provided by the Clearing Corporation will subsequently be matched with them. The shares from the client’s account will only then be transferred to the trading member’s pool account.

The client code will be unique.

The particular client code will be matched with the ID of the trading and clearing member, the amount of shares, and the settlement information once the shares have been transferred from the client’s account to the pool account of the trading member. Deals that don’t match will be refused. The regulation has also been made clearer if there is a mismatch between the instruction and the obligation. It will be regarded as the object with less teaching in such circumstances when the instruction is less and the responsibility is greater.


Featured in the SEBI circular are:

  • SEBI’s latest regulation to safeguard investors’ shares
  • The system for verifying securities being paid in will be tightened.
  • Only after matching the depository clearing will shares be transferred.
  • Comparing and transferring the client’s net delivery obligation
  • Verify whether the client supplied the transfer command.
  • May also be matched through a DDPI or Power of Attorney
  • The current early pay-in block mechanism will remain in place.
  • Transfer only after UCC, TM, CM ID, ISIN, and number are matched
  • Applying rules even when there is no match in the instruction-oblivion
  • Only the lowest command will be valid if the numbers do not match.


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