Question

To whom should the payments and delivery of securities from clients be made directly?

Hint:

Clients must directly deal with trading members for payments and deliveries to ensure secure and regulated transactions.

Answer 1

Payments and delivery of securities from clients should be made directly to the trading member (i.e., the broker) registered with the stock exchange. Trading members are authorized intermediaries who execute buy or sell orders on behalf of clients on stock exchanges like NSE or BSE.
Clients are advised to:

Make all payments via official banking channels (cheque, NEFT, UPI, etc.) to the broker's designated bank account.
Transfer securities using their demat account to the trading member’s pool account or directly to the clearing corporation, as instructed.
Ensure they receive proper documentation such as contract notes and receipts for every transaction.
This practice promotes transparency, ensures traceability, and protects both the investor and the broker under regulatory norms of SEBI and the exchange.