Sebi changes rules on unpaid client securities to ease broker operations

SEBI revised rules governing unpaid client securities to streamline broker operations and ease compliance. Under the new framework, unpaid securities will be credited to client demat accounts with an auto-pledge created in favour of a new Client Unpaid Securities Pledgee Account (CUSPA). Clients will get five trading days to settle payment obligations, after which brokers can invoke the pledge and sell securities, while auto-release of pledges occurs at the end of the sixth trading day if no action is taken.