SEBI New Rule: Clearing Corporations shall provide a mechanism for the trading members or clearing members (CMs) to identify unpaid securities and funded shares under margin trading facility.
SEBI New Rule : Market regulator SEBI has made it mandatory to transfer shares directly from the clearing corporation to the investor’s demat account. The purpose of this step is to increase the safety of the customers’ shares. This step has been taken to increase operating efficiency and reduce the risk of customers’ securities. SEBI has said in a circular that this new rule will be effective from October 14.
What are the rules now
Currently, the Clearing Corporation deposits the payment of securities into the broker’s account. After that it is deposited in the demat accounts of the concerned client. SEBI has taken this decision after extensive consultations with stock markets, clearing corporations and depositories. For payment, the Securities Clearing Corporation will directly deposit it into the demat account of the concerned client.
Clearing members will get new facility
Further, the clearing corporation is required to provide a mechanism for the trading member or clearing members (CM) to identify the outstanding securities and funded shares under the margin trading facility.
What will be the charges on customers
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. Also, in such cases, the broker should not charge any fee to the client other than the fee levied by the clearing corporation.
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