While SEBI is tightening rules to make the markets safer on the one hand, it is also making things simple on the other.

Starting from October 14th, shares bought will be directly credited to the customer’s Demat account through net settlement. This significantly simplifies our DP process, which today involves receiving shares for the entire group of clients and then allocating them based on purchases made, i.e., gross settlement.

And this is much safer, too. A broker from now on will never be able to touch client securities ever, which is possible today when you buy stocks and are not yet credited to your Demat.

By the way, another change that started yesterday is that you can use 100% of funds from sale proceeds for further purchases. Until now, you could only use 80% of the funds if you bought on the same day.

Link to the article which explains this in detail.

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