SEBI proposes tighter sales practices

India's markets regulator has proposed tightening sales practices by market intermediaries and barred traders from executing transactions that are not explicitly authorised by their clients.
The Securities and Exchange Board of India has proposed that traders not recommend transactions which may be unsuitable, based on clients' financial status and risk appetite, it said in a draft circular on its Web site.
It has also asked traders to ensure their clients are made aware of the nature and risk of the transaction, and have sufficient net worth to bear potential losses.
SEBI has also proposed setting a minimum net worth before allowing clients to trade in derivatives. A net worth certificate from a chartered accountant or income-tax return can be accepted for this purpose, it said.
It has also plans to ask traders not to execute transactions on their own account, before making recommendations on these to clients.
"Procedurally, these could create a lot of hassles. It may just make brokers cautious about the business and not push derivative products to clients," said T. S Harihar, vice-president, derivatives at Karvy Stock Broking.
Thanks to (Reuters)

0 comments:

Post a Comment

All comments are moderated. Please post no spam

Disclaimer & Privacy Policies

(c) Mrs. Ruby Christy. This site and contents are owned by Mrs. Ruby Christy;
Use of this website and/or services offered by us indicates your acceptance of our Disclaimer& Privacy Policies.

Information and opinions provided on this website (www.investchips.com) has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Investchips.com and its affiliates, information providers or content providers and R.John Christy and his Family shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this website or feeds, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Investchips.com,its affiliates, information providers ,content providers and R. John Christy and his Family shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this website. Any action you choose to take in the markets is totally your own responsibility. Investchips.com and R. John Christy and his Family will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. Opinions expressed by R. John Christy are his own and not of his past, present and future employers.
The DoubleClick DART cookie is used by Google in the ads served on this websites displaying AdSense for content ads. When users visit this website and either view or click on an ad, a cookie may be dropped on that end user's browser.
  • Google, as a third party vendor, uses cookies to serve ads on this site.
  • Google's use of the DART cookie enables it to serve ads to your users based on their visit to this site and other sites on the Internet.
  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.
  • www.investchips.com never collects any personal information of visitors.