Share Market News: If you are also worried about any suspicious transaction in your trading account, then now your problem is going to be solved. Yes, the day is not far when you will be able to block your trading account like debit and credit cards.
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Market regulator SEBI has ordered brokerage companies to prepare a mechanism by which investors can freeze or block trading accounts as per their wish. With the existing features investors can freeze transactions in demat account. But such facility is not for trading account.
Account blocking facility will start from July 1!
Market experts also say that this option is available even if you have a demat account. But very few people are able to use it. Actually, very few people know about this. When an investor sees any suspicious activity in his account, most of the brokers do not have the feature to freeze/block his account.
In the order given by SEBI, it was said that by April 1, brokers should prepare a framework to freeze and block the Industry Standards Forum (ISF) trading account. The regulator also said that this entire process should start by July 1.
Detailed information will be given to customers by brokers.
SEBI said that the complete framework related to what the brokers will have to do after getting information about blocking of account should also be prepared. Every broker should also give detailed information about this feature to its customers. So that it can be used as much as possible in the times to come when needed.
SEBI said that it happens many times that investors see suspicious activity in their trading accounts. In such a situation, there is a facility to block ATM and credit card. But the facility to block trading accounts needs to be introduced as soon as possible.
SEBI also said that after starting this process from July 1, the stock exchange is required to submit a compliance report to the regulator regarding its above facility by August 31. In another circular, SEBI said that the stock exchange needs to create a system in collaboration with stock brokers to monitor investors’ funds.
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