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The Securities and Exchange Board of India has barred stock brokers from directly accepting cash from their clients or to receive cash deposits in their bank accounts from clients.
“In view of the various modes of payment through electronic means available today, it is directed that stock brokers shall not accept cash from their clients, either directly or by way of cash deposit to the bank account of the stock broker,” SEBI said in a circular on Thursday.
All payments should be received or made by stock brokers from/to the clients strictly by account payee crossed cheques or demand drafts or by way of direct credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India, the circular further added.
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