Demat account change rules: In good news for stock market investors, now they will be able to change their brokers, just like they do with mobile phone operators. Yes, under the interoperability scheme, investors would soon be able to change their brokers if they are not satisfied with their service.
Capital market regulator Securities Exchange Board of India (SEBI) and stock exchanges are mulling how the scheme could be executed.
It is expected the SEBI may come up with regulations in this regard by December end.
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Currently, if investors want to switch brokers, they have to take a no objection certificate (NoC) from their existing broker and make their position Nil before transferring their funds to a new broker. It is said that the market regulator will do away with such exercise in the regulations. Now, an investor can transfer fund along with margins once the regulations come into effect.
Reacting to interoperability scheme under consideration, market expert and Sethi Finmart Pvt MD Vikas Sethi said that it is a welcome development and good news for investors who are hassled due to a broker and could not transfer funds to another similar firm.
He said now brokers will have to work more on improvising their services. This will also make them more accountable towards investors, he said. ” It’s a step in the right direction. Those who are providing good services need not fear, but those who are lagging will have to improvise,” said Sethi.