What is Block Mechanism

Block Mechanism Overview:

When you sell shares, they are blocked in your Demat account to prevent resale until settlement. On the designated pay-in date, the shares will be removed from your account.

Sample SMS Notification:

"On DD/MM/YY, (quantity) of (share name) blocked in your a/c xxxxxxxx for Block Early-Pay-in. - NSDL"

This will be sent from NSDL DP

Key Points:

  • Shares remain in your Demat account until the pay-in date.
  • Unlike earlier practices, shares are no longer moved to a pool account before the pay-in date.
  • Any corporate actions (e.g., dividends) will be credited directly to your bank/Demat account.



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