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Sebi provides facility to remedy erroneous transfers in demat accounts
Capital markets regulator Sebi on Tuesday decided to provide a facility for exemption from one-time password (OTP) to facilitate the reversal of erroneous transfers of securities in demat accounts.
Under the rule, all off-market transfer of securities will be permitted by the depositories only by the execution of a physical Delivery Instruction Slip (DIS) duly signed by the client himself/herself or by way of electronic DIS.
The depositories also put in place a system of obtaining the client's consent through OTP for such off-market transfer of securities from the client's demat account.
The facility came after Sebi received representations from depositories regarding the challenges being faced with regard to obtaining OTP in case of reversal of erroneous transfers in the demat accounts, and was requested to address the issue.
"It is decided that a well-balanced and operational mechanism for exemption from OTP may be provided for reversal of such erroneous transfers in the demat ..