Unique Client Code (UCC) — Allotment, Mapping and Demat Account Linkage Explained
Every client must have a Unique Client Code (UCC) allotted by the trading member, which must be mapped with the client's demat account. The UCC is different from the demat account number. The mapping mechanism between stock exchanges and depositories ensures that trades are properly linked to the client's demat account. This article explains the allotment process, the mapping mechanism, and the client's rights regarding UCC mapping.
The Regulatory Basis
SEBI Circular SMDRP/POLICY/CIR-39/2001 dated July 18, 2001 mandated the use of unique client code for all clients. SEBI Circular SEBI/HO/MIRSD/DOP/CIR/P/2019/136 dated November 15, 2019 introduced the mapping of UCC with the demat account of clients.
UCC Allotment
Mandatory UCC
It shall be mandatory for the broker to use unique client code for all clients. For this purpose, the broker shall collect and maintain in their back office the Permanent Account Number (PAN) allotted by the Income Tax Department for all their clients.
Verification of Documents
Brokers shall verify the documents with respect to the unique code and retain a copy of the document. The brokers shall also be required to furnish the above particulars of their clients to the Stock Exchanges / Clearing Corporations and the same would be updated on a monthly basis. Such information for a specific month should reach the exchange within seven working days of the following month.
UCC Mapping with Demat Account
Mechanism
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UCC Allotment. UCC allotted by the trading member (TM) to the client shall be mapped with the demat account of the client.
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Multiple TMs. A client may trade through multiple TMs in which case each such UCC shall be mapped with one or more demat account(s).
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Data Sharing. Stock Exchanges shall share the UCC data with the Depositories which shall include the PAN, segment, TM/CM code and UCC allotted. Such UCC data, in respect of new UCCs created, shall be shared with the Depositories, on a daily basis.
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Mapping by Depositories. Depositories shall map the UCC data in the demat account based on the PAN provided in the UCC database.
Client Rights
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Request for Delinking or Adding UCC. Clients may make a request to their depository participants to delink or add UCC details which shall be processed by the Depository through depository participants.
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Validation. Before any addition of UCC in the demat account, the Depositories shall validate the same with the Stock Exchanges / client.
Complaint Mechanism
Stock Exchanges and Depositories shall have a mechanism in place to address clients' complaints with regard to UCC mapping with their demat accounts.
Inactive UCCs
Stock Exchanges and Depositories shall have a mechanism in place to ensure that inactive, non-operational UCCs are not misused and also a mechanism to ensure that inactive, non-operational UCCs are weeded out in the process of mapping clients' UCC with their demat account.
Client Responsibilities
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Do not share login credentials. Do not share your internet/mobile trading login credentials with anyone else.
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Do not allow unauthorised trading. Do not allow anyone (including your own stock broker, their representatives and dealers) to trade in your trading account on their own without taking specific instruction from you for your trades.
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Keep information updated. Keep your email Id and mobile phone details with the stock broker always updated.
How We Help
At Anuj Desai & Associates, we help stock brokers implement UCC allotment and mapping, ensure compliance with SEBI's requirements, and address client complaints regarding UCC mapping. If you need assistance with UCC compliance, reach out to our regulatory compliance desk.