Sebi discontinues payment through demand draft mode for intermediaries

Capital markets regulator Sebi on Tuesday discontinued the option of payment through demand draft for intermediaries and asked them to pay fees and penalties only through digital mode.

The new rule will come into force from April 1, the Securities and Exchange Board of India (Sebi) said in a circular.

The regulator has decided to introduce the changes in the Securities Lending Scheme, whereby intermediaries will have to send the fee payable, by way of direct credit into the bank account through NEFT/RTGS/IMPS or online payment using the Sebi payment gateway.

Further, a receipt will be sent to the approved intermediaries after the realisation of the payment through any of these modes. This comes after the Sebi's board in its meeting in December 2022 approved rules to dispense with the option of payment through demand draft and ensure that the payment of fees, penalties and recoveries is to be made only through the digital mode of payment.