Amongst all the vested interests that are out to get hold of his money, the lay investor has one really good friend in the stock markets. We are talking about none other than SEBI. This market regulator has been really aggressive in making the investment environment much safer for Indian retail investors over the past couple of years. And it has just made one more such move.
SEBI has now made it mandatory for stock brokers to return their clients' unutilised cash lying idle with them at the end of every month or quarter. The brokers will also have to send out a statement showing clients the status of their funds at similar intervals. Further, if you as a customer choose to withdraw your funds from your broker, he will now have to transfer the same to you within one working day. This in contrast to the earlier norm of 2-3 days. There have been cases where many brokers have unscrupulously misused customer funds without their knowledge. These new rules will go a long way in putting a check on such practices.
12 years ago
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