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    Question

    In light of recent regulations, how has the SEBI

    circular amended the handling and distribution of securities to clients by brokers? The new directive aims to revise the traditional procedures to bolster transparency and safeguard investor interests. Consider the following options:
    A Securities must be pooled by brokers before being paid out to clients. Correct Answer Incorrect Answer
    B Direct payout of securities to client demat accounts, replacing the practice of pooling by brokers. Correct Answer Incorrect Answer
    C Securities must be held by brokers for a minimum of 30 days before payout. Correct Answer Incorrect Answer
    D Clients must now directly handle all pay-in transactions. Correct Answer Incorrect Answer
    E Securities can only be paid out through a central depository. Correct Answer Incorrect Answer

    Solution

    The circular mandates that the payout of securities should be done directly to the clients' demat accounts, replacing the current practice where brokers pool securities before paying out to clients. This change aims to enhance operational efficiency and reduce the risk of misuse of clients' securities.

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