Consider the following statement about SEBI’s new guidelines for brokers-:
I. It is issued to prevent misuse of unpaid client securities.
II. The pay-out will have to be transferred to the client’s demat account.
III. The transfer will be done within seven working day from the pool account of trading or clearing members. Which of the above statement is/are not correct?

In a move to prevent misuse of unpaid client securities, the Securities and Exchange Board of India (SEBI) has issued new guidelines for brokers on the pay-out of such securities. The markets regulator has directed that all securities received in pay-out will have to be transferred to the client’s demat account within one working day from the pool account of trading or clearing members. Shares that a client wants to buy are first transferred to the broker’s account from the clearing corporations.The day a buyer receives the shares from the broker is called the pay-out date. The regulator has asked brokers to open a separate account titled client unpaid securities pledgee account to transfer unpaid securities. The securities that have not been paid in full will be transferred to the client’s demat account followed by the creation of an auto-pledge with the reason ‘unpaid’. Learn Along: SEBI                          Headquarters: Mumbai Chairman: Madhabi Puri Buch A Demat Account or Dematerialized Account provides the facility of holding shares and securities in an electronic format. During online trading, shares are bought and held in a Demat Account, thus, facilitating easy trade for the users. A Demat Account holds all the investments an individual makes in shares, government securities, exchange-traded funds, bonds and mutual funds in one place.