The Securities and Exchange board of India on 15th November 2019, has issued a circular directing the stock exchanges and depositories to put in place a mechanism to map the Unique client code with the demat account of a client.
SEBI in its earlier circular dated 17 December 2018, has initiated an early warning mechanism to detect instances of diversion of clients security by earlier stage to take appropriate preventive measures. As a continuation of the process, it was considered necessary to map clients ‘Unique Client Code’ (UCC) with their demat accounts. Therefore a mechanism for mapping of UCC with demat accounts of the clients was discussed with Stock Exchanges and Depositories.
Pursuant to the discussion with Stock Exchanges and Depositories, the following mechanism for mapping of UCC is implemented:
- UCC allotted by the trading member (TM) to the client shall be mapped with the demat .
- account of the client and if the client trade through multiple TMs, each UCC shall be mapped with one or more demat account.
- Stock Exchanges shall share the UCC data with the Depositories which shall include the PAN, segment, TM/CM code and UCC allotted. Such UCC data shall be shared with the Depositories on a one-time basis by November 30, 2019.
- In order to de-link or add UCC, the client may make a request to the depository and before adding the UCC in the demat account, the depositories shall validate the same with stock exchanges.
- 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.
Stock Exchanges and Depositories shall map the existing UCCs with the demat account of the clients latest by December 31, 2019
Click here to read the Circular
