The Central Depository Services (India) Limited (CDSL) system now permits Clearing Members (CMs) and Beneficial Owners (BOs) to make early pay-in of securities for sale trades. This facility could enable CMs and BOs to reduce their margin money obligation toward the stock exchange.

The early pay-in, involves transfer of securities from the account of a BO/CM to a designated DP account. The facility is permitted both for the Account Period/Weekly and Rolling type settlements. The facility has already become operative at BOI Shareholding Limited, the Clearing House of the BSE from November 12, 2001. A similar facility for Clearing Members of the NSE, has been extended by CDSL through NSCCL from November 19, 2001.

The BO/CM, by issuing appropriate instructions to his Depository Participant, can avail of the early pay-in facility. The early pay-in can be effected right from the day of trading, upto one day prior to the pay-in day.