What Is The Meaning Of CDSL-UCC Delinked From Demat Account Message
– #Meaning #CDSLUCC #Delinked #Demat #Account #Message
Recently many Zerodha investor clients have been receiving an email from the CDSL stating CDSL-UCC has been delinked from demat account, and wish to know the meaning behind it.
The full email from the CDSL states, “CDSL-UCC is delinked from your Demat account ending with XXXX9999. In case the same is not given by you, you may contact your DP.”
Explained What Is The Meaning Of CDSL-UCC Delinked From Demat Account Message
This is just mapping of your Unique client code (UCC) and Demat no (BO id) & purpose for the same is to have systematic checks in place by SEBI.
— Preksha Baid (@itsprekshaBaid) November 15, 2022
CDSL (Central Depository Services Limited) is a company that facilitates holding and transacting in securities in electronic form. It also plays a part in facilitating settlement of trades on stock exchanges.
Why Is CDSL Circulating The Email?
Before deducing the meaning behind the email, lets us firstly understand why the CDSL are circulating the email.
Just recently, the Securities and Exchange Board of India (SEBI), which is the regulatory body for securities and commodity markets in India, issued a circular. The circular stated a requirement for mapping every UCC and the Demat account number (BO ID).
The UCC or Unique Client ID is the ID that a client uses when opening an account with a Broker. SEBI have issued the whole mapping process is to place systematic checks on stock trading activities and verify the actions of both the client and the Broker when shares are sold.
Given below is the how the mapping process happens and what aspects of the account are involved:
UCC – Demat account – Trading Member ID (Broker ID) – Clearing Member ID – Segments.
Meaning Behind Email From CDSL
Now that we are clear with why the CDSL are circulating the email, lets u understand the meaning behind it. We have learned that SEBI maps the UCC and Demat account and the mapping process can change based on the UCC’s status.
Whenever a Broker changes the status of the UCC from ‘Active’ to ‘Inactive’ or ‘Closed’, the particular UCC to Demat linking gets unmapped or simply de-linked.
As such, Zerodha clients who have received the email from the CDSL have received it because other brokers that the client has an account with have changed the status of their Client ID from Active to Inactive. The change in status, means that the particular UCC has been delinked from the Zerodha Demat account.
Clients should note that the email will also indicate the client code of the Broker that has changed their status. In the email, clients will find two values stating their current account status under which V and D, are denoted. V stands for Verified while D stands for Delinked.
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