According to the new SEBI rules, if a client has traded after 30 calendar days and before the date of the next monthly settlement period, then its settlement can be done on the dates notified by the exchange in the annual calendar.

“If the client trades after 30 days and before the subsequent dates of the monthly running account settlement cycle, the client’s account will be settled by the trading member as per the client’s quarterly/monthly settlement preference,” said a circular issued by Sebi on Monday.

What was the rule earlier?

As per a circular dated June 16, 2021, the accounts of clients who have not made any transactions in the last 30 days were required to be settled by the Trading Member (TM) within the next three working days.

This rule of SEBI was objected to by the Brokers’ Industry Standards Forum (ISF). The forum said that under the existing rule, trading members had to identify such clients on a daily basis, which led to daily settlement of funds. This led to procedural complexities and wastage of time.

Related Articles:-

BSNL New Service: These BSNL customers will get free TV service, will also be able to watch Amazon and Netflix

Property Rights: Can a married sister claim her brother’s property, know what the law says

Good news for farmers! Central government extends crop insurance deadline, know how to apply

The post SEBI New Rule: SEBI has brought new rules regarding trading account, fund transfer will be easy, know full details first appeared on Rightsofemployees.com.

The most important thing between these two is that you buy/sell shares in the secondary market through the trading account and its effect i.e. debit or credit of securities is reflected in the demat account. Let us finally know how these two are different from each other.

Trading account is a flow while Demat account is a stock

Transactions happen in the trading account but the securities appear as debit or credit in the demat account. The trading account is a record of the transactions of buying and selling of shares and it is the trading account where you execute your trades on the stock exchange. The demat account cannot execute transactions in the open market. This is why, even though you do not need a trading account to apply for an IPO, you still need a trading account to sell the shares allotted to you in an IPO.

The main difference between the two is ownership.

A demat account comes in handy when it involves ownership of assets. The main difference between a trading account and a demat account is ownership. Only assets or securities that you own can come into a demat account. This is why intraday trades and F&O trades happen in a trading account but do not appear in a demat account. Intraday trades or futures and options transactions do not create ownership. They only create transactions that allow you to participate in the price rise or fall. Then there are others like bonds, RBI bonds and mutual funds, where you can buy and sell from a demat account without using a trading account.

Demat account is required for IPO, not trading account

You can apply for IPOs with a demat account without a trading account. You need a demat account when you apply for an IPO because the shares will be allotted only through demat credit as physical share allotment is no longer allowed. According to SBI Securities, however, you do not need a trading account to invest in an IPO, but that is only a part of it. After getting an allotment in an IPO, if the share is listed at a premium of 70% and you want to sell the shares, you need a trading account.

You can get an allotment in an IPO and hold them in your demat account. However, to sell these shares, you still need a trading account. This is why a trading account cum demat account makes a lot of sense for investors. Direct selling from a demat account is not allowed, so the day you choose to sell IPO shares, you need a trading account.

Is a demat account necessary for F&O intraday trading?

There are occasions when you do not need a trading account. If you only want to hold RBI bonds in your demat account, then a trading account is not required. In this case, just having a demat account is enough. Similarly, if you have received shares as a gift or inherited and you do not want to sell them, then a demat account is enough, a trading account is not required.

Latest News:-

• RBI allows PPI holders to make UPI payment through third party mobile applications
• Bank Holiday Alert: All banks will remain closed today on Saturday 28 December – Check Details
• 7th Pay Commission: Good News for Employees! DA will Increase to 57%, Salary will Increase to THIS Much
• IMD Rainfall High ALERT! Meteorological Department has issued a warning of rain in these 13 districts today
• Personal Loan: Can students take personal loan without income? Here is complete information

The post What is the Difference Between Demat and Trading account? Key Benefits & Feature first appeared on Rightsofemployees.com.

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.

The post SEBI New Order! You will be able to block your trading account like debit and credit cards first appeared on Rightsofemployees.com.