What was the reason behind CDSL sending an email regarding the revised process for submitting off-market transfers?

CDSL has issued an email outlining the revised process for off-market transfers, aimed at enhancing security and preventing incorrect transfers of securities. Effective December 30, 2023, the new process mandates that the buyer’s (receiver’s) demat account must be added as a beneficiary in the seller’s (sender’s) demat account before the off-market transaction can proceed. This change ensures that only authorized transfers are executed. 

Purpose: The primary objective of this change is to mitigate the risk of errors and prevent fraudulent transfers of securities between demat accounts. 

Implementation: CDSL has introduced a system where the buyer’s demat account must be pre-approved as a beneficiary in the seller’s account before initiating any off-market transaction. 

Impact: As a result, off-market transfers can only be initiated once the beneficiary account is added, ensuring that the securities are transferred to the intended recipient. 

Effectiveness: This revised process was rolled out on December 29, 2023, and became effective on December 30, 2023.