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What new scheme is SEBI planning to protect investors? – News

New Safety Plan of SEBI: After the default of Karvy Stock Broking, market regulator SEBI (SEBI, Securities and Exchange Board of India) is constantly trying to make investors’ money and shares safe (Secure Investor’s Money). Many steps have already been taken in this regard. According to the information, now some more new options are also being considered. SEBI is considering the option that like shares, the funds should remain in the investor’s account and not have to be transferred to the broker’s account.

In this, as soon as the deal is done, an amount equal to the transaction should be blocked in the investor’s account. That is, in the same way as the amount gets blocked in the account with share allotment on applying for IPO, similar arrangement should be brought for transactions in the secondary market as well. Discussions are going on with SEBI, banks, National Payment Corporation of India (NPCI) and Clearing Corporations on this matter. What kind of technical changes will happen to do this and whether there can be benefits and disadvantages are also being considered.

What do market experts say,

Stock market watchers believe that this would be a good step to make the market more transparent. This move will bring seriousness to the market. Those who have working capital will remain those who are not serious, they will not be able to work.

Experts also believe that earlier many brokers used to misuse client’s money. Many brokers have also closed because of this. Because they used to make mistakes with the money of the client. He had problems with his capital. But the brokerage used to earn in this way. Not only this, many times he used to make private deals with the money of the client.

Some people even say that this arrangement will be very good because if some one broker makes a mistake, then the name of the whole community gets maligned. When SEBI will not give a way to make a mess, then this situation will not come.

This was the Karvy Stock Broking case

Karvy Stock Broking was alleged to have misused the shares of investors on a large scale. The investors had taken loans by pledging their shares with banks and financial institutions, which was absolutely illegal. Later, on the instructions of SEBI, all the shares in the accounts of those investors in cases where there was no dispute were returned. Then later SEBI changed the rules in a big way. The matter is still going on in the Securities Appellate Tribunal.

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