On Apr. 15, 2025, IND NSD announced two key changes to its depository system.
TMs and CMs may perform a unilateral closure of the CUSPA pledge only within five trading days after the pay-out; it is not permitted on the 6th and 7th trading days.
They may invoke the pledge within five trading days after pay-out solely to meet the client’s delivery obligation; invocation is not allowed on the 6th and 7th trading days.
These changes will be implemented at EOD of Apr. 30, 2025.
On Jun. 12, IND NSD clarified clients securities handling by members.
IND NSD issued clarification on handling of clients securities by trading members (TM)/ clearing members (CM), referred to previous IND NSD and IND SEBI circulars.
TMs/CMs can execute unilateral closure instruction to release pledge within five trading days after payout, converting securities from pledge balance to free balance.
Unilateral closure cannot be executed on the 6th and 7th trading days after payout.
Invocation of pledge can be executed within 5 trading days after payout against client's delivery obligation; can be executed on 6th and 7th trading days after payout against delivery obligation if trades executed within initial five trading days.
Effectiveness
Changes will be effective from EOD Jun. 14, 2024; participants to inform their clients.
Jan. 2025 Live Trading Session
On Jan. 30, 2025, IND NSD said that in view of live trading session by IND NSE and IND BSE, Feb. 1, 2025 will be considered 5th trading day for client unpaid securities pledgee account (CUSPA) pledges created for trade date Jan. 24, pay-out date Jan. 27.
TMs/CMs will not be able to execute unilateral closure instructions on Feb. 3 and 4.
They must consider Feb. 1, 2025 as a trading day when calculating 5th trading day after the pay-out of unpaid securities between Jan. 27, 2025 and Jan. 31, 2025.
Document dated Jan. 30, 2025, received from IND NSD Jan. 31, summarized Feb. 3.
Apr. 2025 Depository System Changes
On Apr. 15, 2025, IND NSD announced two key changes to its depository system.
TMs and CMs may perform a unilateral closure of the CUSPA pledge only within five trading days after the pay-out; it is not permitted on the 6th and 7th trading days.
They may invoke the pledge within five trading days after pay-out solely to meet the client’s delivery obligation; invocation is not allowed on the 6th and 7th trading days.
These changes will be implemented at EOD of Apr. 30, 2025.
