Sebi additionally directed exchanges and depositories to place in place a mechanism to map every UCC with a number of demat accounts. The Sebi route is aimed toward detecting and stopping brokers from illegally diverting securities of buyers to make a quick buck. Each investor with a broking home is assigned a UCC. Nonetheless, the identical particular person can have a distinct UCC when he opens an account with one other dealer.
In 2018, Sebi had initiated an early warning mechanism to detect situations of diversion of shopper’s securities by the inventory dealer at an early stage to take applicable preventive measures. As a continuation of the method, after discussions with inventory exchanges and depositories, Sebi stated that whereas brokers will map every UCC with a number of demat accounts, bourses will share knowledge like PAN, buying and selling phase of the investor, if the dealer is a buying and selling or a clearing member, and so on linked to every UCC. Subsequently, depositories will map every PAN with the UCC.
“Inventory exchanges and depositories shall have a mechanism in place to make sure that inactive, non-operational UCCs should not misused and in addition a system to make sure that inactive, non-operational UCCs are weeded out within the technique of mapping purchasers’ UCC with their demat account,” a Sebi round stated.
Inventory exchanges and depositories ought to share knowledge by November 30 and the whole course of to hyperlink UCC with PAN and different knowledge ought to be in place by December 31, Sebi stated. After the preliminary part, the method must proceed as an ongoing observe.