Securities and Exchange Board of India famous that credit on account of company actions will probably be permitted
Securities and Exchange Board of India famous that credit on account of company actions will probably be permitted
Capital markets regulator SEBI on Monday mentioned all demat accounts of inventory brokers, that are untagged, should be appropriately tagged by June-end.
Credit of securities is not going to be allowed in any demat account left untagged from July 1 onwards. However, credit on account of company actions will probably be permitted, the Securities and Exchange Board of India (SEBI) mentioned in a round.
Tagging of financial institution and demat accounts replicate the aim for which these financial institution/demat accounts are being maintained and the reporting of such accounts to the inventory exchanges/depositories.
SEBI additional mentioned that debit of securities will even not be allowed in any demat account left untagged from August.
The inventory dealer should acquire permission from inventory exchanges to permit tagging of such demat accounts from August 1 onwards and in flip exchanges have to grant such approval inside two working days after imposing penalty as per their inner coverage.
“All demat accounts of stock brokers which are untagged need to be appropriately tagged by June 30, 2022,” SEBI mentioned.
The framework is not going to be relevant for the demat accounts that are used completely for banking actions by inventory brokers that are additionally banks.
At current, inventory brokers are required to take care of demat accounts solely underneath 5 classes — proprietary account, pool account, shopper unpaid securities, shopper securities margin pledge account and shopper securities underneath margin funding account.
Under the foundations, naming proprietary demat accounts of the inventory dealer as ‘Stock Broker – Proprietary Account’ is voluntary and accounts which aren’t tagged could be deemed to be proprietary.
Source: www.thehindu.com
