look news india
Mumbai: In another move to reduce the role of broker-dealers in the stock markets, capital markets regulator SEBI has started making it mandatory to make securities payments directly into customers' demat accounts.
The Securities and Exchange Board of India (SEBI) has proposed direct credit of securities into the demat accounts of customers instead of pool accounts of brokers. At present this process is voluntary. Wherein the securities are deposited in the pool account of the broker, the broker credits them into the demat accounts of the respective clients.
In order to enhance operational efficiency and reduce the risk to customer securities, the move envisages mandating the process of crediting securities directly into the customer's account, Sebi said in a proposal. SEBI has sought public comments on the proposal till May 30.
The capital markets regulator has also proposed to reduce the trading lot size of infrastructure investment trusts (InvITs) from Rs 1 crore to Rs 25 lakh. The objective of this proposal is to increase liquidity in privately held investments to increase access and attractiveness to investors. SEBI says that this step will promote diversification of investment portfolio and investors will be able to manage risk better.
SEBI has also proposed changes in the norms for sponsors of INVITs. Under which the change in sponsorship will be affected either due to new sponsor or exit of existing sponsors. SEBI said the proposed amendments are aimed at clarifying possible changes in sponsorship, including exit of a co-sponsor without induction of a new sponsor.