SEBI relaxed margin trading rules, extended the deadline for submission of net worth certificate for brokers
The Securities and Exchange Board of India (SEBI) on Tuesday extended the time limit for submission of net worth certificate required to provide margin trading facility for stock brokers. According to PTI news, this step has been taken to make the rules easier and promote the ease of business. Under the current rules, brokers have to submit the certificate of the auditor twice in six months in six months in the event of 31 March and 30 September. They had to be handed over to the stock exchanges by 30 April and 31 October respectively.
This will be new deadline now
According to the news, but SEBI received several requests from the market participants to extend the deadline. Keeping this in mind, SEBI has decided to coordinate the deadline for submission of net worth certificate with the announcement of financial results, which is under the Lodr (Listing Obligation and Disclosure Requirement) Rules. Now, brokers will have to submit an auditor’s certificate within 45 days for the half -year -old half -yearly to end on September 30 and for the half -year -31 for half 60 days.
This means that the new deadline will now be 15 November and 31 May, which was earlier 31 October and 30 April. This new rule has become effective immediately. SEBI has instructed the stock exchanges to make necessary amendments to their bye -laws, rules and regulations and inform this change to their members.
SEBI is considering amendment in wholesale deal draft
Market regulator SEBI has recently proposed to increase the minimum order size from Rs 10 crore to Rs 25 crore for wholesale deals. The current border is in force from 2017. Wholesale deals have a major stake in the total business of the stock market. These deals are between buyers and sellers through a single transaction in the stock market. This can be done by the stock market only during a special 15-minute window opened twice a day. SEBI said in his consultation paper that the minimum order size for wholesale deals will be Rs 25 crore.
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