CDSL block mechanism for pay-in

Wed, 20 May 2026 00:00:00 +0000

The CDSL block mechanism is a SEBI-approved framework that allows shares being sold to be locked in the seller’s demat account in advance of settlement, without transferring them to the broker’s pool account. The block mechanism is part of the broader direct payout to demat framework that reduces client funds and securities risk.

How the block mechanism works

Pre-block-mechanism: When you placed a sell order, the broker triggered a Delivery Instruction Slip (DIS) or used an eDIS authorisation to move shares from the seller’s demat to the broker’s pool. The broker then settled with the buyer via the pool.

Block Mechanism on WebNotes

CDSL block mechanism for pay-in

How the block mechanism works