Sebi eases account opening norms for individual investors
PrintListen to this Article
To make it easier for new individual investors, market regulator Sebi announced a 'Saral' or simplified account opening form for such persons and eased the process for submitting address proof documents.
The move comes in the backdrop of the government and the regulator making efforts to attract new retail investors to the market especially for the disinvestment share sales through Offer For Sale (OFS) and other routes.
In a circular issued to all stock exchanges and various market intermediaries, the Sebi said: "A majority of new investors in the securities market begin with participation in the cash segment without obtaining various other facilities such as Internet trading, margin trading, derivative trading and use of power of attorney".
"The account opening process can be simplified for such individual investors. With a view to encourage their participation, it is, therefore, decided that such individual investors can open a trading account and demat account by filling up a simplified Account Opening Form (AOF) termed as 'SARAL AOF'..."
The new form will be available with the intermediaries and can also be downloaded from the websites of the exchanges and depositories.
The investors who open account through SARAL form will also have the option to obtain other facilities, whenever they require on furnishing of additional information.
The Sebi further said that for these individual investors, it has been decided to simplify the requirement of submission of 'proof of address'.
"Henceforth, individual investor may submit only one documentary proof of address (either residence/correspondence or permanent) while opening a trading account and/or demat account or while undergoing updation".
In case the proof of address furnished by the investor is not the address where the investor is currently residing, the intermediary take a declaration of the residence or correspondence address on which all correspondence will be made by the intermediary with the investor.
"No proof is required to be submitted for such correspondence/residence address. In the event of change in this address due to relocation or any other reason, investor may intimate the new address for correspondence to the intermediary within two weeks of such a change.
"The residence/ correspondence address and any such change thereof may be verified by the intermediary through 'positive confirmation' such as acknowledgment of receipt Welcome Kit/ dispatch of contract notes/any periodical statement, telephonic conversation or visits, etc," the regulator said. SEBI (Economic Times)
Category : SEBI | Comments : 0 | Hits : 353
A financial influencer, also known as finfluencer, who was also involved in imparting training related to stock market trading has been asked to part with a little over ?12 crore, which it made unlawfully. The funds are to be credited or deposited by Ravindra Balu Bharti into an interest-bearing escrow account that has been set up in a nationalised bank especially for that purpose. The regulator stated in an order that the escrow account(s) would establish a lien in favour of SEBI and that th...
The Securities and Exchange Board of India (Sebi), the country's market regulator, has announced the launch of an optional same-day (T+0) settlement cycle for a select group of 25 stocks starting March 28, as per a circular published on its website last Thursday. This new initiative, referred to as the beta version, is set to coexist with the traditional next-day (T+1) settlement cycle, where trades are settled within 24 hours of execution. The T+0 settlement option will be available for ...
Capital markets regulator Sebi on Thursday slapped a fine of Rs 48 lakh on eight entities, including promoters of United Polyfab Gujarat Ltd (UPGL), for manipulating the share prices of the company. These entities have to pay the penalty jointly and severally within 45 days, as per an order. The order came after Sebi conducted an investigation of UPGL and trading by certain entities in the scrip of the company, to ascertain whether there was any violation of the provisions of the PFUTP (Pr...
Sebi alerts investors about the growing trend of unregistered entities falsely claiming Sebi registration and offering unrealistic returns. Investors are advised to verify the registration status and consider the inherent risks associated with high-return investments. The Securities and Exchange Board of India (Sebi) has issued a warning to investors, cautioning them against investing money with unregistered entities that promise assured or exceptionally high returns on investments. This advi...
Capital markets regulator Sebi on Thursday issued orders of action against 15 guest experts of the Zee Business channel for unlawful trading. The entities made unlawful gains to the tune of Rs. 7.41 crore from such trades and the profit was shared with guest experts as per prior understanding, Sebi noted. The market regulator also asked the guest experts to pay Rs.7.41 crore. The guest experts appeared on the Zee Business channel from 1 February 2022 and 31 December 2022. "The facts of t...
Comments