SEBI issues new rules protecting investors in unpaid stock trades
SEBI just rolled out fresh guidelines to help protect investors when they haven't paid for their stocks yet.
These changes are designed to make things clearer and fairer, especially after input from industry experts.
The goal? To keep your investments safe and bring everyone up to speed with the latest payout systems.
Unpaid shares auto-pledged to CUSPA
Now, if you buy stocks but don't pay right away (non-margin trades), those shares go straight into your demat account, but with an automatic pledge in a broker-managed account called CUSPA.
Brokers have to let you know about any payments due via email or text, and you'll get up to five trading days to settle before they can sell your shares.
Plus, SEBI has put in extra safeguards: brokers can't use these pledged shares to boost trading limits, and any unpaid shares not claimed will be released back after six trading days.
Stock exchanges will share more details soon, with most rules kicking in within three months.