The Central Depository Services (India) Limited (CDSL) on October 23, 2026, has notified Depository Participants (DPs) and Trading Members (TMs) of system changes to implement SEBI’s revised provisions on handling clients’ unpaid securities, pursuant to the operational guidelines issued by NSE and BSE on July 31, 2026. For clearing corporation pay-outs processed up to October 30, 2026, the CUSPA pledge expiry date will remain the pay-out day plus seven trading days. If the pledge is neither invoked by the end of the fifth trading day nor released by the end of the seventh trading day, it will be automatically released by CDSL at the end of the seventh trading day.
For pay-outs processed from October 31, 2026, the CUSPA pledge expiry period will be reduced to the pay-out day plus six trading days. If the pledge is neither invoked by the end of the fifth trading day nor released by the end of the sixth trading day, it will be automatically released at the end of the sixth trading day, making the securities available as free balance in the client’s demat account. From October 31, 2026, TMs may also request release of the CUSPA pledge at any time before its automatic release by CDSL, replacing the earlier restriction of requesting release only up to the end of the fifth trading day.
The amended provisions of Paragraphs 46.12 to 46.14 of the SEBI Master Circular for Stock Brokers will take effect six months from the issuance of the relevant SEBI Circular, with CDSL’s implementation procedures to be communicated separately. DPs and TMs are advised to update their back-office systems and processes to ensure compliance with the revised requirements.
[Notification No. CDSL/OPS/DP/POLCY/2026/745]
