NSDL Circular on - Validation of reason codes while execution of off-market transactions

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Date of Issue: 13-10-2025  
           
Issuer: NSDL

Validation of reason codes while execution of off-market transactions

Highlights of NSDL Circular dated October-13-2025

Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2022/0084 dated July 18, 2022 and NSDL/POLICY/2024/0090 dated June 25, 2024, regarding Validation of reason codes while execution of off-market transactions.

In this context, the below mentioned changes will be incorporated in the validation for off-market transfer reason code ‘30 - Transfer of constituent shares for creation of ETF units’ and same is enclosed as Annexure A (Highlighted in Yellow).

Participants are once again requested to take note of the validations elaborated in Annexure - A and ensure due diligence to avoid non-execution of off-market transactions.

Participants are advised to disseminate the contents of this circular to their concerned clients to enable them to take utmost care to avoid non-execution of off-market instructions due to implementation of reason code validations. Participants are also advised to take steps to educate their clients about selecting an appropriate reason code while executing off-market transfer. Any deviation in selecting the reason code should be brought to the notice of clients to avoid failure of off-market transfers.

The aforesaid changes have been implemented in NSDL Depository system at EOD of October 10, 2025. Participants are requested to take note of the above and initiate suitable back-office changes.

In case of any clarification or assistance required in the implementation of this circular, you may contact : Kaushik Jethwa at kau...@secmark.in and 9870210171.