Providing a significant positive stimulus to the convenience of doing business, trade goods and capital market regulator SEBI on weekday paved the means for integration of stock and trade goods brokers.
The move also will scale back prices for investors as they'll use a fund with one broker to require an edge in each the trade goods and stock market. This, to associate degree extent, also will ease the margin demand on investors.
In a notification issued on weekday, SEBI aforesaid the restrictions on stockbrokers handling securities from dealing in trade goods derivatives has been done away with.
Similarly, the restriction on stockbrokers handling trade goods derivatives from dealing in alternative securities has additionally been done away with.
Therefore, it added, post these amendments, a stockbroker will deal in trade goods derivatives and alternative securities below one entity, thereby facilitating the convenience of doing business. SEBI additionally allowed exchange ability of funds between 2 plus categories — trade goods and stock markets — provided the capitalist is serviceable by identical broker.
Under the only registration method, SEBI can issue one-time registration certificate to stockbrokers and clearing members. afterwards, permissions to act as a stock broker/clearing member of stock exchanges and clearing firms shall be granted by the several stock exchanges and clearing corporation once correct due diligence, it added.
Prior approval of the regulator are going to be needed for agents solely in cases wherever integration results in a amendment on top of things of the stockbroker and clearing member.
To more facilitate integration, SEBI has allowed transfer of consumer accounts from one agent to the opposite with the client’s categorical consent.
The regulator additionally extended all the norms issued for trade goods exchanges and their members to stock exchanges and brokers.
It additionally repealed erstwhile trade goods market regulator Forward Markets Commission’s restrictions on trade goods brokers dealing in stocks, shares and alternative securities.
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