Homemarket News

    Sebi considering options to protect the interest of retail investors, says report

    Sebi considering options to protect the interest of retail investors, says report

    Sebi considering options to protect the interest of retail investors, says report
    Profile image

    By CNBC-TV18  IST (Published)

    Securities and Exchange Board of India (Sebi) is considering options to protect the interest of retail investors in the market, reported The Economic Times.
    Defaulting brokers and vanishing share portfolios have often put retail investors in vulnerable positions and this prompted the market regulator to consider ways to them, the report said.
    The regulator is planning to tighten rules for trading settlement and introduce custodians for retail investors who will manage the back-end operations of investors after a trade is done, the report said quoting people familiar with the development.
    “In the past, there have been instances when brokers go bust and clients’ shares also vanish. There are a few proposals: one is, can we have a system where clients’ shares are not with the broker?” a senior regulatory official was quoted as saying in the report.
    The proposals have already been discussed during the secondary market advisory committee meeting of Sebi, the daily said.
    While officials have argued that the new measures could prevent exploiting of retail investors, some fear that the introduction of custodians could lead to an increase in costs for small investors, added the report.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng