SEBI has suggested that if any disparity arises in the accounts of the client and the broker, then the TM or CM can compensate it through auction.
New Delhi. Market regulator SEBI on Wednesday decided to make the process of direct payment of shares into the customers’ account mandatory. This step has been taken to increase operational efficiency and reduce the risk of securities of customers. The Securities and Exchange Board of India (SEBI) said in a circular that it will be effective from October 14.
Currently, the clearing corporation credits the payment for securities to the broker’s account. It is then credited to the demat accounts of the respective client. SEBI has decided after extensive consultations with the stock exchanges, clearing corporations and depositories, “For payment, the clearing corporation will directly credit the demat account of the respective client.”
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This suggestion given to the Clearing Corporation
Further, the Clearing Corporation should provide a mechanism for the trading member or clearing members to identify the outstanding securities and shares financed under the margin trading facility.
SEBI has suggested that if there is any shortfall at the ‘position’ level, then the trading member or the clearing member should settle it through the auction process. Apart from this, in such cases, the broker should not charge any fee to the client other than the fee levied by the clearing corporation.
