Direct Payout to Investors

NSCCL has introduced the facility of direct payout (i.e. direct delivery of securities) to clients’ account on both the depositories. IT ascertains from each clearing member, the beneficiary account details of their respective clients who are due to receive pay out of securities. Based on the information received from members, the clearing corporation sends payout instructions to the depositories, so that the client receives the payout to the extent of instructions received from the respective clearing members. To the extent of instructions not received, the securities are credited to the CM pool account of the member. Following are the salient features of ‘Direct Payout ’to investors. (a)    Clearing members are required to provide a file to NSCCL for effecting payout to investors’ account for a particular settlement type, settlement number and delivery type. The file is to be provided as per the structure specified by NSCCL. (b)   The time limit for submission of files is up to 9:30 am on the pay out day. (c)    The files are uploaded by NSCCL in its system and returned with the indication of the success/rejection of the file and the records. This is purely a validation of the correctness of the file and record formats. (d)   If for any client account record, the quantity requested for direct payout is more than the balance available for pay out to the clearing member in that depository, the quantity available in that depository is directly credited to the member settlement account in that  depository. If the member receives entire shares in NSDL the same will be transferred to members pool account in NSDL. (e)    If the member’s client has not paid the dues to the member for the said securities or for any other reason, the member has valid justification not to release the payout of a client direct in such a situation