Sebi tweaks rules on handling of unpaid securities

SEBI has revised its framework for handling client unpaid securities. Securities purchased but not fully paid for will continue to be credited directly to clients' demat accounts, but will now be automatically pledged in favour of a separate Client Unpaid Securities Pledgee Account (CUSPA) maintained by the trading member, eliminating the need for fresh pledge instructions from clients. The changes were made after receiving representations from the Brokers' Industry Standards Forum to address operational challenges faced during implementation of the earlier provisions.