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THE Securities and Exchange Board of Indias (Sebi) recent circular, which imposes a penalty on brokers for delayed payment of funds, could have far-reaching implications, say market experts and investor associations.
For one, it could reduce court cases due to wrong charges levied by brokers on their clients. Also, once the rule comes into force, brokers will have to pay interest to their clients at the rate similar to what they charge the clients. Experts also say that the new agreement will prevent funding by the broker in contravention of the applicable laws. The regulator has asked stock exchanges to ensure that the rule is implemented before the end of this financial year.
check out this news.
THE Securities and Exchange Board of Indias (Sebi) recent circular, which imposes a penalty on brokers for delayed payment of funds, could have far-reaching implications, say market experts and investor associations.
For one, it could reduce court cases due to wrong charges levied by brokers on their clients. Also, once the rule comes into force, brokers will have to pay interest to their clients at the rate similar to what they charge the clients. Experts also say that the new agreement will prevent funding by the broker in contravention of the applicable laws. The regulator has asked stock exchanges to ensure that the rule is implemented before the end of this financial year.