Achi news desk-
Currently, the clearing corporation credits the payments to the broker’s pool account, which then credits them to the client’s demat accounts.
Markets regulator Securities and Exchange Board of India has made direct payment of securities into customer account mandatory. This move is expected to reduce the risk to the clients’ securities.
Currently, the clearing corporation credits the payments to the broker’s pool account, which then credits them to the client’s demat accounts.
In addition, a facility of direct delivery to investors was introduced in February 2001. “It has been decided that the process of paying the securities directly into the customer’s account will now be mandatory,” the Securities and Exchange Board of India (Sebi) said in the article. Advice paper.
Sebi said the clearing corporations should provide a mechanism for trading members (TM)/clearing members (CM) to identify the outstanding securities and shares financed under the margin trading facility.
If any shortage occurs due to netting of positions between clients, Sebi suggested that the Trading Member or Clearing Member address such shortage through an auction process.
In such cases, the intermediaries must not collect any charges from the client beyond the charges charged by the clearing corporations.
In May 2023 Sebi detailed various processes for handling customer securities in regards to the payment and payment of securities.
This is to protect the securities of the clients and to ensure that the broker segregates the securities of the client or clients so that they are not exposed to misuse. The regulator requested comments from the public until May 30 on the proposal.
with inputs from PTI
Posted: May 9, 2024, 7:27 PM IST
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