[Circulars: November 12, 2010 and December 06, 2010]
CDC recently implemented the mechanism for movement of book-entry securities which would automate the securities settlement thereby eliminating the use of the Main Account. Under the proposed mechanism, in which UIN would play a central role, book-entry securities will be moved directly between two beneficial owners accounts.
After the implementation of the automation of securities transfer mechanism in CDS, almost all Free Delivery and Balance Order movements will be based on UIN. As per the new mechanism, UIN entered in CDS would be validated from NCCPL Centralized Database (NCDB). Therefore, for all new and existing Sub-Accounts (including joint accounts), Participants were requested to ensure that the UINs entered in CDS are the same as in NCCPL Database. They were informed that after the implementation of the said mechanism, trading on stock exchanges will not be possible until UIN available in both the systems is synchronized. In this regard, CDC provided Clearing Member Participants a list of unsynchronized Sub-Accounts under their Participant umbrella. Moreover, opening and updations of Sub-Accounts in CDS by Clearing Member Participants would also not be possible without having the UIN registered with NCCPL.