Clearing Members (CMs) are members of the Clearing Houses/Clearing Corporations who facilitate settlement of trades done on stock exchanges.

While beneficial owners may have their demat accounts with any one of the depositories, it is mandatory on the part of CM to have a demat account with both the depositories in terms of SEBI press release ref. no. PR 153/99 dated July9, 1999.

A CM's main activity is to facilitate pay-in/pay-out of securities to/from Clearing House/Clearing Corporations either on their own behalf or on behalf of their clients. The securities which are due for delivery can be delivered directly from client's account or through CM's account to the Clearing House/Clearing Corporation's Account. Similarly, pay-out of securities can be delivered directly to client's account on the basis of information given to Clearing House by the CM or through CM's A/c.

Transactions through easiest:

Through CDSL’s internet based facility easiest- a CM can submit transactions on the Internet "anytime-anywhere" in an efficient and convenient manner, all in a state-of-the-art secure environment. A CM can also obtain regular reports from CDSL through easiest which enables close monitoring of settlements.

With a view to make it more convenient for CMs to handle their settlements efficiently, CDSL has introduced a facility called "CM upload through easiest". A CM who registers for this facility and has created the Power of Attorney link on the basis of Power of Attorney received from his client (which is registered with the client’s DP) can also upload intra-depository debit transactions for all his clients ( who have registered POA in its favour) across various DPs in CDSL using easiest. This will obviate the need to submit multiple DISs to multiple DPs of its clients.

Benefits for CMs:

• CM can efficiently manage the settlements of his clients from his office, without requiring to visit the DP's office.
• CM ( holding valid Power of Attorney) can make Early pay-in, Normal pay-in or transaction of securities directly from the client’s a/c to the CH/CC or the CMs Settlement account. A CM can do pay-in of securities on T day itself and obtain release of margins latest by T+1 morning, thus, resulting in substantial savings for the CM.
• In case of Normal pay-in from the client’s account, available balance is picked up at the time of pay-in, thus reducing losses due to any shortages.
• CMs can avoid paperwork to execute DIS for each for each instruction as they will be digitally signed. If CMs use the facility of POA link, they can avoid signing of DISs on behalf of their clients by uploading instructions through easiest.

A CDSL CM DP can derive the following benefits:

• Continuous monitoring of the deliveries received for pay-in or from pay-out, their movement and easy reconciliation of trade settlements.
• Reduction in cost of operations.
• Offering one stop services to clients in respect of trading and depository services leading to increase in business and enabling effective monitoring of client a/c position to insulate from failure in settlement.