Securities Pay-out :

In case of demat securities, the same are credited by the Clearing House in the Pool/Principal Accounts of the member-brokers. The Exchange has also provided a facility to the member-brokers for transfer of pay-out securities directly to the clients’ beneficiary owner accounts without routing the same through their Pool/Principal accounts in NSDL/CDSL. For this, the concerned member-brokers are required to give a client wise break up file which is uploaded by the member-brokers from their offices to the Clearing House. Based on the break up given by the memberbrokers, the Clearing House instructs depositories, viz., CDSL & NSDL to credit the securities tothe Beneficiary Owners (BO) Accounts of the clients. In case delivery of securities received from one depository is to be credited to an account in the other depository, the Clearing House does an inter depository transfer to give effect to such transfers. In case of physical securities, the Receiving Members are required to collect the same from the Clearing House on the pay-out day.

This process of passing on delivery of securities purchased by the member-brokers to them by the Clearing House is called pay-out of securities.