SEBI mandates Block mechanism in demat account for share sale transactions from 14th November 2022.

The Securities and Exchange Board of India on 18th August 2022, has made it mandatory for investors to block securities on their demat accounts for sale transactions. As per the earlier notified the facility of block mechanism was optional.

Under the mechanism, shares of a client intending to make a sale transaction will be blocked in the client’s demat account in favour of the clearing corporation concerned. The block mechanism will become mandatory from 14th November 2022.

RECENT UPDATES