All accounts maintained by stockbrokers must be marked by the end of June, according to a SEBI circular; without purchase, sale from unmarked accounts from July 1

To increase transparency, the Securities and Exchange Commission of India (SEBI) has asked stockbrokers to mark all unmarked demat accounts by the end of June.

In a circular issued Monday, the market warden ordered stockbrokers to mark all accounts in different categories. The above move is to understand the purpose for which a debit account was opened by stockbrokers.

SEBI gave brokers time until June 30 to implement the marking of debit accounts.

If accounts remain unmarked from July 1, any new purchase from those accounts will not be allowed.

However, the shares will be credited as a result of corporate actions. Account holders whose accounts remain unmarked will also not be able to sell shares from their accounts.

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Stock exchanges and depositories will have to submit their compliance reports on July 1 and August 1.

According to the norms of SEBI, there are five types of demat accounts that are opened.

He tightens the rules for demat accounts.

  1. The proker will now have to categorize the demat accounts and say their purpose.
  2. The marking of debit accounts must be completed by June 30.
  3. The shares cannot be added to unmarked demat accounts from July 1.
  4. There is no impact on the addition of shares in connection with corporate action.
  5. As of August 1, the shares cannot be sold from unmarked accounts.
  6. Stock exchanges and depositories must submit their compliance reports by July 1 and August 1.
  7. Currently open debit accounts fall into 5 categories.

5 categories in which demat accounts are opened

– Own account – for independent trade
– Pool account – for settlements.
– Client’s unpaid securities – for unpaid shares of the client
– Pledge for margin on clients’ securities – pledge of client shares for margin
– Client securities under margin financing – financed securities for margin securities

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