IANS | 08 Jun, 2024
Praising the Securities and Exchange Board of India (SEBI) for making
markets safer and more investor-friendly, Zerodha’s Co-founder and CEO Nithin
Kamath on Friday said that the new regulation will ease operations at a
broker's end.
SEBI's latest regulation is around the direct payout of securities to
investor demat accounts upon purchase.
At present, when investors buy securities, they're credited by the
clearing corporation (CC) to the stock broker's pool account, who in turn
transfers them to the clients.
"With the introduction of new regulation, CCs will directly
transfer securities to the client's account, bypassing the broker's pool. This
also eases operations at a broker's end," Kamath wrote in a post on X.
Kamath also mentioned that since 2019, SEBI has brought in several
changes to the market.
"It started with the segregation of client funds, compulsory
quarterly bank runs on brokers (quarterly settlement), removing pooling of
funds for MF transactions, and more".
The CEO, in his post, mentioned another SEBI move which will most likely
be introduced is around increasing the limit for a Basic Services Demat Account
(BSDA) from the current Rs 4 lakh to Rs 10 lakh.
"So, investors will pay zero or reduced AMC on their demat accounts
with holdings up to Rs 10 lakh," Kamath said.
Meanwhile, Zerodha has said that it will now let investors instantly
withdraw up to Rs 1 lakh daily between 9 A.M. and 4 P.M., at no additional
cost.
--IANS