BSE Circular on - Direct Payout of Securities to Client Demat Account - UCC for Proprietary and Client Accounts by Trading Members

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Date of Issue:8-7-2025                

Issuer: BSE

Direct Payout of Securities to Client Demat Account - UCC for Proprietary and Client Accounts by Trading Members

Highlights of BSE Circular dated July-8-2025

According to the ICCL circular 20240902-8 dated 02nd September 2024, titled "Enhancement of operational efficiency and Risk Reduction – Operating guidelines for Pay-out of securities directly to client demat account," the demat account for credit of pay-out is identified based on the combination of the Trading Member (TM) code and the Unique Client Code (UCC).

Furthermore, for the purpose of direct pay-out, the proprietary account is identified by the TM code. Specifically, in the NSE, the TM code is equivalent to the Client code, and in the BSE/MSEI, the TM code is denoted as OWN.

To ensure the proper netting of trades for clients and proprietary accounts, and to guarantee that pay-outs pertaining to clients and proprietary accounts are credited to the correct demat account, members are requested to adhere to the following guidelines:

• The Unique Client Code (UCC) allotted to clients must not be the same as the Trading Member (TM) code of the member on any of the exchanges, nor should it be the same as the UCC code allocated to the proprietary account on any of the exchanges.
• The UCC allotted to the proprietary account must not be the same as the TM code of the member on the exchanges.

The same is explained in below example.

A Trading member has TM code 11111 in ‘NSE’, 2222 in ‘BSE’ and 3333 in ‘MSEI’. Codes, as per below grid, should not be used to create a proprietary or client UCC by the trading member.

If the UCC code of a client is the same as that of a proprietary account, it could result in the trade being considered as proprietary or vice versa. This may lead to incorrect netting and/or the credit of direct pay-out to the incorrect entity.

Members are requested to ensure that any such proprietary/client UCC, if existing, is deactivated. A new UCC should be created with a different code that confirms to the aforementioned guidelines.

In case of any clarification or assistance required in the implementation of this circular, you may contact       

Kaushik Jethwa - kau...@secmark.in / 9870210171

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