Skip to main content

Sebi extends deadline for stockbrokers to set up records of client orders

Image
By
Sebi extends deadline for stockbrokers to set up records of client orders
Sebi has extended till 1 April deadline for stockbrokers to comply with the requirement of keeping evidence of every instruction given by clients for equity and equity derivative trades
The Securities and Exchange Board of India (Sebi) on Thursday extended the deadline for stockbrokers to comply with the requirement of keeping evidence of every instruction given by clients for equity and equity derivative trades. This rule will now be applicable from 1 April, instead of the earlier specified date of 1 January
On 26 September, the markets regulator had directed all brokerages to compulsorily record every phone call of their clients or keep evidence of all trade-related instructions in writing, email or text message formats in a bid to prevent any risk arising from unauthorized trading.
The market watchdog had also directed brokerages to keep a record of the logs of internet transactions by their clients and all other legally verifiable records for share transactions.
On 10 November, Mint reported that bourses and brokers were protesting the Sebi order, claiming it was impossible to have adequate phone recording systems at every terminal with sufficient accuracy of voice identification and then retrieve such records.
On Thursday, Sebi said in a circular that it had received representations from the BSE Brokers Forum and the Association of National Exchanges Members of India expressing difficulties in implementing the circular. Sebi said it would grant no further extension than 1 April.
In its September circular, Sebi had put the onus on stock brokers to produce proof of clients’ activities in the event of any dispute arising out of a stock trade.
The Mint, New Delhi, 12th January 2018 

Comments

Post a Comment

Popular posts from this blog

RBI minutes show MPC members flagged upside risks to inflation

By
RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …
Post a Comment
Read more

Shrinking footprints of foreign banks in India

By
Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…
Post a Comment
Read more

Differential Tax Levy under GST: Food Firms May De-Register Trademarks

By
Differential Tax Levy under GST:Food Firms May De-Register Trademarks The government’s decision to charge an enhanced tax rate on trademark food brands is leading several rice, wheat and cereal manufacturers to consider de-registering their product trademarks. Irked by the June 28 central government notification fixing a 5 per cent goods and services tax (GST) rate on food items packaged in unit containers and bearing registered brand names, the industry has made several representations to the government to reconsider the differential tax levy, which these players say is creating an unlevel playing field within these highly-competitive and low-margin industries. Sources say that the move has affected the packaged rice industry the hardest and allowed the un-registered market leaders, India Gate and Daawat, to gain advantage as compared to other registered brands such as Kohinoor and Lal Qilla. Smaller players are even more worried with this enhanced rate of tax (against the otherwise …
Post a Comment
Read more