In order to enhance the ease of doing business for stockbrokers and ease of doing investment for clients, SEBI has amended Paragraph 46 of the Master Circular for Stock Brokers dated June 17, 2025 specifying provisions with respect to Handling of Client’s Securities by Trading Members (TM)/ Clearing Members (CM).
It is provided that, for trades not covered under margin trading facility (MTF), the pay-out of unpaid securities (i.e., the securities that have not been paid for in full by the clients) shall be directly made to the client’s demat account followed by creation of an auto-pledge (i.e., without any specific instruction from the client) with the reason “unpaid”, in favor of a separate account titled –“client unpaid securities pledgee account (CUSPA)”, which shall be opened by TM. Further, TM must formulate and maintain a policy, either on standalone basis or as part of its Risk Management Policy, for handling unpaid securities in terms of this circular and any circulars/ operational guidelines issued by exchanges in this regard and communicate the same to all clients prior to implementation
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