Amendments to DP Operating Instructions under Chapter 1, Chapter 2 and Chapter 6 in relation to categorization of demat accounts

Central Depository Services Limited, vide Circular No. CDSL/OPS/DP/POLCY/2026/249 dated April 10, 2026, has announced an important update regarding Amendments to DP Operating Instructions under Chapter 1, Chapter 2 and Chapter 6 in relation to categorization of demat accounts.

Key Details of the Update –
• The communiqué introduces amendments to the DP Operating Instructions covering Chapter 1 – Account Types within CDSL, Chapter 2 – Account Opening, and Chapter 6 – Settlement, with the principal focus on reclassification, clarification, and operational treatment of demat account categories.
• As reflected in Annexure A, the amendments revise the overall account structure by refining the terminology and treatment of accounts such as CH/CC House accounts, CM Pool / CM Clearing Member accounts, and Trading Member Pool accounts, thereby bringing greater operational clarity in the depository framework.
• The amendments clarify that securities from the Settlement Default (CH/CC Pool) Account may be transferred not only to CM Principal Accounts, original or other BO accounts, and CM Clearing Member Pool Accounts, but also to TM Pool Accounts or any other account as specified by Central Depository Services Limited from time to time.
• The revised instructions expand and refine the meaning of CM Clearing Member (CM) Account / CM Pool Account, specifying that such account is opened by a Clearing Member for settlement of client trade obligations and also plays an operational role in direct credit of securities pay-out to client accounts. The amendment further clarifies that if the CM Pool Account is not present or is closed, the direct pay-out transaction would be rejected during payout processing and the matter would be informed to the relevant Clearing Corporation.
• A new and more detailed framework is introduced for the Trading Member (TM) Pool Account, clarifying that it is opened by a Trading Member for settling client trade obligations and may also be used for creating MTF pledge from client account in favour of the Trading Member’s MTF account. The amendment also indicates that self-clearing Trading Members who settle client obligations themselves need not open a separate TM Pool Account.
• The communiqué retains and reiterates the position relating to MANTRA accounts, namely that such accounts are to be opened for margin trading and stock lending facilities, must be maintained as separate client-wise demat accounts, and are required to be opened in the name of the client and not the broker member.
• In relation to account opening documentation, the amendments make technical clarifications to provisions dealing with Clearing Member accounts, including the description of CM Pool / CM Principal / Early Pay-in accounts, especially where the Clearing Member is a non-corporate body or a partnership firm.
• Under Chapter 6 – Settlements, the amendment to Clause 6.6.4.4 on Early Pay-in clarifies that early pay-in instructions may be given from CM Clearing account, CM Principal account, BO account, or CM Pool account, and that on setup the securities are transferred to the designated Clearing Corporation / Clearing House Pool account on pay-in date. This change provides more precision in settlement routing and operational processing.
• Overall, the update appears intended to harmonize account categorization, reduce ambiguity in settlement-related accounts, and align depository operations with current market settlement practices, particularly with respect to Clearing Members, Trading Members, direct pay-out, margin trading structures, and early pay-in processing.

Actions if Any –
• Depository Participants are required to take note of the amendments incorporated in the revised DP Operating Instructions.
• Depository Participants should review Annexure A in track changes mode and align their account opening, categorization, and settlement-related operational processes with the amended instructions.