SEBI is also discussing a new rule to apply upfront margins in the cash segment of the stock market. Accordingly, the cash segment will have to pay a minimum margin of 22 percent. If the shares are sold on Monday, the shareholders will get the money only after the T + 2 settlement and it can be used to stop the market again. This means that you can buy shares on Wednesday only from the money earned from the sale of one share today.
Most brokers vehemently objected, saying the rule could hurt the volume of BTST or STBT (Buy Today, Sell Today or Buy Today, Buy Tomorrow) volumes. Even if the shares fall in your Demat account, the margin may be charged. Ta. The new rule was expected to take effect on August 1. But due to strong opposition from brokers, it is likely to be reconsidered by SEBI and is being discussed in the market.
Brokers expressed concern
The friction between brokers and customers will increase and the difficulty in margin collection will increase
It is unreasonable to take margin even though there are shares in the demat account
For small investors, Rs. No margin on deals up to Rs 5 lakh
Challenges to Direct Platforms
At present, the KYC of the investors is the responsibility of the brokers. Whose responsibility remains in the new system
At present NSDL and CDSL handle demat transactions through five hundred-thousand brokers, then a framework has to be worked out on how to conduct direct transactions of one crore retail investors.
At present, if an investor defaults, it is the responsibility of the broker, but the new system also has to make arrangements that are difficult.
Direct shares can be bought and sold without a broker
For the past four-five months, SEBI has been discussing plans to launch a direct market access system for retail investors. Currently, any investor can buy or sell only through a stockbroker. But any retail investor will be able to trade in the same way that large institutional investors like FIIs can trade from stock exchanges without brokers. It will be announced shortly.