The Central Depository Services (India) Limited (CDSL) on March 23, 2026, introduced system enhancements to enable direct credit of securities into investors’ dematerialisation (demat) accounts, in line with regulatory changes aimed at eliminating the requirement of Letter of Confirmation (LOC) and simplifying investor service processes.
Under the revised framework, Registrars and Transfer Agents (RTAs) and issuers can initiate dematerialisation requests through an online single-entry mode in the CDSL system. The process will cover key investor service requests such as duplicate certificate issuance, transmission, transposition, claims from suspense accounts, and corporate actions. Depository Participants (DPs) must provide the Client Master List (CML) to investors, ensure proper signature verification, and attest the same before processing requests.
Additionally, new standardized transaction status and transaction codes (e.g., OTP-based authentication stages) have been introduced for better tracking and transparency. The updated system will go live on April 2, 2026, and existing LOCs issued prior to implementation will remain valid for 120 days. DPs are required to update their systems and ensure compliance before the implementation date.
[Communiqué No. CDSL/OPS/DP/POLCY/2026/202]
