Overview

• Sebi’s circular introduces a single 'pledge release for early pay-in' instruction that automatically releases and blocks client-pledged securities in demat accounts.
• Broker-initiated invocation will automatically block invoked equity shares, excluding unlisted mutual fund units, for early pay-in in the client’s demat account.
• The 'invocation-cum-redemption' facility will enable automatic redemption of non-exchange-traded mutual fund units following invocation.
• Securities moved to brokers’ demat accounts from frozen or blocked client accounts must be sold under the brokers’ proprietary codes on the same trading day.
• Depositories must issue detailed operational guidelines by July 1 ahead of the framework’s September 5, 2025 implementation.