SEBI clarification regarding demat accounts maintained by stock brokers

SEBI vide circular dated June 20, 2022 has clarified that stock brokers are required to maintain demat accounts only under 5 categories:

1. Proprietary Account to Hold Own Securities
2. Pool account for Settlement Purposes.
3. Client Unpaid Securities Account to Hold Unpaid Securities of Clients
4. Client Securities Margin Pledge Account for Margin obligations to be given by way of Pledge/ Re-pledge
5. Client Securities under Margin Funding Account to Hold funded securities in respect of margin funding

All demat accounts maintained by stock brokers should be appropriately tagged. All demat accounts of stock brokers which are untagged need to be appropriately tagged by June 30, 2022. Credit of securities shall not be allowed in any demat account left untagged from July 01, 2022 onwards. Credits on account of corporate actions shall be permitted. Debit of securities shall also not be allowed in any demat account left untagged from August 01, 2022. Stock Broker shall obtain permission from Stock Exchanges to allow tagging of such demat accounts from August 01, 2022 onwards. Stock Exchange shall grant such approval within two working days after imposing penalty as per their internal policy.