Key Points

The rules were earlier scheduled to take effect from September 1.

"Based on the same and in order to ensure smooth implementation without any disruption to the market players and investors, it has been decided to extend the timeline for implementation to October 10," SEBI said in its circular.

The regulator said the decision was taken after receiving requests from depositories CDSL and NSDL, which sought more time to complete system development and conduct end-to-end testing.

SEBI said the extension will ensure smooth implementation without causing disruption to investors or market participants.

Under the new framework, clients' securities will be blocked for early pay-in directly in their demat accounts when margin obligations are invoked.

This mechanism is designed to prevent misuse of securities by brokers and to maintain a clear transaction trail.

SEBI has also introduced a new feature called 'pledge release for pay-in.' With this, once the pledge is released, a pay-in block will be automatically created in the client's demat account.

Depositories will provide the necessary functionality to make this process seamless.

After implementation, brokers will no longer be required to submit separate physical or electronic instructions for un-pledging and delivery.

The system will automatically validate the pay-in amount based on the client's obligation, making the process faster and more transparent.

Meanwhile, the market regulator received a record number of settlement applications in 2024-25 -- showing a clear trend of entities preferring to resolve disputes without prolonged litigation.

According to the SEBI's latest annual report which as released last week, the regulator received 703 settlement pleas during the year, a sharp rise from 434 in the previous financial year.

- IANS