**Summary:**
This circular, reference number SEBI/HO/MIRSD/DoP/CIR/2022/162, issued by the Securities and Exchange Board of India (SEBI) on November 25, 2022, announces an extension of the implementation timelines for two previously issued circulars.
The first extension pertains to circular SEBI/HO/MIRSD/MIRSD/PoD-1/CIR/2022/137, dated October 06, 2022, concerning the execution of Demat Debit and Pledge Instruction (DDPI) for the transfer of securities related to deliveries, settlement obligations, and pledging/re-pledging of securities. The effective date for this circular is now extended to on or before January 20, 2023.
The second extension concerns circular SEBI/HO/MIRSD/DoP/CIR/2022/119, dated September 19, 2022, regarding the validation of instructions for Pay-In of Securities from Client demat accounts to Trading Member (TM) Pool Accounts against obligations received from Clearing Corporations. The effective date for this circular is now extended to January 27, 2023.
Stock Exchanges and Depositories are directed to inform their members and participants about these extensions via their websites, amend relevant Byelaws, Rules, and Regulations accordingly, and report the implementation status to SEBI within 7 working days of implementation and in their Monthly Development Reports.
This circular is issued under the authority granted by Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Section 19 of the Depositories Act, 1996, to protect investor interests and regulate the securities markets.
For further information, contact Aradhana Verma, Deputy General Manager, at Tel. No: 022-26449633 or via email at aradhanad@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): Regulatory body for securities markets in India, responsible for issuing the circulars mentioned in the document.
Depositories: Entities that hold securities in electronic form.
Stock Exchanges: Organized marketplaces where securities are bought and sold.
Clearing Corporations: Entities that facilitate the clearing and settlement of securities transactions.
SEBI circular SEBIHOMIRSDMIRSDPoD1PCIR2022137: A circular issued by SEBI on Execution of Demat Debit and Pledge Instruction DDPI for transfer of securities towards deliveries settlement obligations and pledging re pledging of securities Clarification.
SEBI circular SEBIHOMIRSDDoPPCIR2022119: A circular issued by SEBI on Validation of Instructions for PayIn of Securities from Client demat account to Trading Member TM Pool Account against obligations received from the Clearing Corporations.
Depositories Act, 1996: An act of the Parliament of India that provides a legal framework for the establishment and regulation of depositories in India.
Securities and Exchange Board of India Act, 1992: An act of the Parliament of India that established the Securities and Exchange Board of India (SEBI).
CIRCULAR
SEBI/HO/MIRSD/DoP/P/CIR/2022/162 November 25, 2022
To,
All Depositories
All recognized Stock Exchanges and Clearing Corporations
Madam / Sir,
Sub: Extension of timelines for implementation of SEBI circulars
SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/137 and SEBI/HO/MIRSD/
DoP/P/CIR/2022/119
1. SEBI had issued circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/137 dated
October 06, 2022 on “Execution of ‘Demat Debit and Pledge Instruction’ (DDPI) for
transfer of securities towards deliveries / settlement obligations and pledging / re-
pledging of securities – Clarification”. The provisions of the same were to come
into effect from November 18, 2022.
2. SEBI had issued circular SEBI/HO/MIRSD/DoP/P/CIR/2022/119 dated September
19, 2022 on “Validation of Instructions for Pay-In of Securities from Client demat
account to Trading Member (TM) Pool Account against obligations received from
the Clearing Corporations”. The provisions of the same were to come into effect
from November 25, 2022.
3. In this regard, based on representation from depositories and further consultations,
it has been decided that:
3.1. the provisions of the circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/137
dated October 06, 2022 shall come into effect on or before January 20, 2023.
3.2. the provisions of the circular SEBI/HO/MIRSD/DoP/P/CIR/2022/119 dated
September 19, 2022 shall come into effect from January 27, 2023.
Page 1 of 24. The provisions of the respective circulars stand modified to this extent.
5. Stock Exchanges and Depositories are directed to:
5.1. bring the provisions of this circular to the notice of their members / participants
and also disseminate the same on their websites;
5.2. make necessary amendments to the relevant Bye-laws, Rules and Regulations
for the implementation of the above decision.
5.3. communicate to SEBI, the status of the implementation of the provisions of this
circular within 7 working days after implementation and in their Monthly
Development Reports.
6. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992, and Section 19 of the
Depositories Act, 1996 to protect the interests of investors in securities and to
promote the development of, and to regulate the securities markets.
Yours faithfully
Aradhana Verma
Deputy General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
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