Stocks to be credited directly to your demat a/c, not via broker


MUMBAI: To minimise dangers available in the market, regulator Sebi has mandated that from Oct 14, buyers will obtain the shares they purchased directly to their demat accounts from clearing companies.
Currently clearing companies credit score shares to buyers’ brokers who in flip credit score these shares to the respective buyers. Sebi had discovered that at occasions brokers misuse such securities in pooled accounts for different obligations and therefore the proposed new system that may get rid of the intervention of brokers for crediting shares to patrons’ accounts.
“The securities for pay-out shall be credited directly to the respective client’s demat account by the (clearing corporation),” a round from Sebi stated.“Clearing corpora- tions shall provide a mechanism for trading members/ clearing members to identify the unpaid securities and funded stocks under the margin trading facility,” it stated.
The round additionally stated that if shopping for of some shares had been funded by the investor’s broker, then the broker would maintain these shares by the use of pledge. In case the investor fails to pay up on time for shares purchased on borrowed cash, these may be auctioned.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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