Sebi simplifies trading account opening procedures
Simplifying the procedure for investors entering the capital market, regulator Sebi on Monday said they need to sign only one trading account opening form and not a multiple set of documents.business Updated: Aug 22, 2011 21:44 IST
Simplifying the procedure for investors entering the capital market, regulator Sebi on Monday said they need to sign only one trading account opening form and not a multiple set of documents.
"The client will now be required to sign only on one document i.e. account opening form," market regulator Sebi said, adding it is being done with a view to simplifying and rationalising the account opening process.
At present, an investor has to enter into a number of agreements depending on his trading preferences, like stock exchanges, segments, internet/ wireless technology based trading.
As a result, the investors need to put his sign on a large number of documents.
Sebi said that henceforth, in the trading account opening form, the client would need to put his signatures instead of saying 'yes' or 'tick mark' while indicating preferences for trading.
As part of simplifying the account opening process, Sebi has devised uniform documentation to be followed by all the stock brokers and trading members.
In the account opening process, stock brokers and trading members would also give a tariff sheet specifying various charges, including brokerage, payable by the client to avoid any disputes at a later date.
Besides, any voluntary clause or document added by the stock brokers shall form part of the non-mandatory documents, Sebi added.
The market regulator has asked the stock brokers to take necessary steps to implement simplified procedure in respect of all new clients within 15 days.
The decision was taken, it said, in consultation with major stock exchanges and market participants.
However, in case the investor wants to avail running account facility, execute Power of Attorney, he would have to give specific authorisation to the stock broker in order to avoid any dispute in the future.