Description
NSE Clearing updates requirements for members to use separate demat accounts for proprietary UCC, distinct from clearing member pool accounts.
Summary
NSE Clearing Limited has updated requirements for direct pay-out of securities to client demat accounts. Members must now open and map separate demat accounts as primary accounts for proprietary UCC, distinct from DP ID-Client ID accounts associated with their NSDL clearing member pool accounts.
Key Points
- Members have been incorrectly mapping demat accounts (DP ID-Client ID) associated with NSDL clearing member pool accounts as primary demat accounts for proprietary UCC
- NSDL permits credit of direct pay-out to clearing member pool accounts only based on CM BP ID, not DP ID-Client ID accounts
- Future demat detail submissions for UCC must strictly adhere to the new requirement of separate accounts
- This circular references previous circulars NCL/CMPT/66779 (February 21, 2025) and NCL/CMPT/67947 (May 09, 2025)
Regulatory Changes
Members are now required to maintain separate demat accounts for proprietary UCC operations, ensuring clear segregation from clearing member pool account structures.
Compliance Requirements
- Open separate demat account as primary account for proprietary UCC
- Ensure new demat account is distinct from DP ID-Client ID account linked to NSDL clearing member pool account
- Update UCC database mapping accordingly
- Comply with new requirements for all future demat detail submissions
Important Dates
- Circular Date: August 01, 2025
- Immediate compliance required for future UCC submissions
Impact Assessment
This update affects all NSE clearing members who need to restructure their demat account mapping for proprietary trading operations. The change ensures proper segregation and compliance with NSDL’s credit mechanisms for direct pay-out of securities.
Impact Justification
Operational requirement affecting clearing members' demat account mapping procedures