Debit of securities will also not be allowed in any demat account without tag from August.
Capital markets regulator SEBI announced that all untagged demat accounts of stock brokers should be tagged by the end of June. No securities will be deposited in any untagged demat account with effect from July 1.
There is big news for those trading in the stock market. Capital Markets Regulator SEBI (Sebi) has stated that all demat accounts of stock brokers (Demat Account), which are untagged, need to be tagged appropriately by the end of June. Deposit of securities will not be allowed in any demat account without tag from 1st July. The Securities and Exchange Board of India (SEBI), however, said in a circular that credit will be allowed on account of corporate actions. Tagging of bank and demat accounts reflects the purpose for which those bank/demat accounts are being maintained and Reporting of such accounts to the stock exchanges/depositories.
SEBI further said that from August, debit of securities will also not be allowed in any demat account without tag. The stock broker will have to take approval from the stock exchanges to allow tagging of such demat accounts from August 1 and the exchanges in turn will have to give such approval within two working days after levying the penalty as per their internal policy. All demat accounts of stock brokers which are untagged need to be properly tagged by June 30, 2022, SEBI said.
Rules will not apply to these demat accounts
This framework will not be applicable for demat accounts which are used exclusively for banking activities by stock brokers who are also banks. Presently, stockbrokers are required to maintain demat accounts under only five categories – Proprietor Account, Pool Account, Client Unpaid Securities, Client Securities Margin Pledge Account and Client Securities under Margin Funding Account.
As per the rules, it is voluntary to designate the demat accounts owned by the stock broker as ‘Stock Broker Proprietary Account’ and the accounts which are not tagged will be treated as proprietary.
SEBI’s net income grew by 1.55 per cent in FY21
Capital markets regulator SEBI’s total income grew marginally to Rs 826 crore in the financial year 2020-21. The main reason for the increase in income is the increase in income from investments and fees. According to SEBI annual accounts, the regulator’s total expenditure for the year ended March 31, 2021 increased to Rs 667.2 crore from Rs 588.14 crore in the previous fiscal.
On the other hand, the regulator’s fee income increased from Rs 608.26 crore to Rs 610.10 crore, investment income increased from Rs 170.35 crore to Rs 182.21 crore and other income from Rs 18.15 crore to Rs 21.5 crore.
Source: www.tv9hindi.com
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