Sebi lays down mechanism to map unique client code with demat account

Capital markets regulator Sebi on Friday put in place a mechanism for stock exchanges and depositories to map the unique client code (UCC) with the demat account of a client.

"Stock exchanges and depositories shall map the existing UCCs with the demat account of the clients latest by December 31, 2019," the regulator said in a circular.

Sebi said "UCC allotted by the trading member (TM) to the client shall be mapped with the demat account of the client."

"A client may trade through multiple TMs in which case each such UCC shall be mapped with one or more demat account(s)," it added.

Sebi has asked the bourses to share the UCC data having PAN, segment, TM/CM (clearing member) code and the allotted UCC with the depositories.

The UCC data is to be shared with the depositories on a one-time basis by November 30, 2019, and subsequently the incremental data in respect of new UCCs shall be shared on a daily basis, Sebi said.

Besides, depositories need to map the UCC data in the demat account based on the PAN provided in the UCC database.

Additionally, clients can make a request to their depository participants to delink or add UCC details which will then be processed by the depository through depository participants.

Before any addition of UCC in the demat account, the depositories shall validate the same with the stock exchanges and client.

The regulator has also asked exchanges and depositories to have a mechanism in place to address clients' complaints with regard to UCC mapping with their demat accounts.

"Stock Exchanges and Depositories shall have a mechanism in place to ensure that inactive, non-operational UCCs are not misused and also a mechanism to ensure that inactive, non-operational UCCs are weeded out in the process of mapping clients' UCC with their demat account," Sebi said.

The framework has been put in place pursuant to discussions with exchanges and depositories in order to facilitate ease in reconciliation, it added.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel