Sebi extends last date for implementation of new pledging system to Sept 1

Earlier deadline was July 1; Move follows request by depository firms tasked with readying the backend for the new system for extension as the "changes to the systems are still under process"

Market regulator Securities and Exchange Board of India (Sebi) has extended the deadline for the introduction of Demat Debit and Pledging Instruction (DDPI) system to September 1. The earlier deadline for implementation was July 1. However, depository firms tasked with readying the backend for the new system asked the regulator for an extension as the “changes to the systems are still under process”.

The new DDPI system is designed to prevent misuse of client securities by brokers. It does away with the erstwhile power of attorney (POA) system, which was prone to misuse.

The new framework is a more foolproof