Content creators mean business
Social media influencers are flipping the rules by first getting followers and then launching products and ...
The Secondary Markets Advisory Committee (SMAC), appointed by market regulator SEBI, has agreed on a number of proposals including raising the capital adequacy ratio of a stockbroker from around ₹50 lakh (base minimum capital) to ₹1 crore, hiking the minimum net worth criteria for stockbrokers to ₹1 crore from ₹10 lakh on the BSE, and upping the net worth of trading-cum-clearing members to ₹25 crore.
It has been nearly a decade that SEBI has kept the networth criteria for brokers so low. The regulator now believes that it should be hiked so that there is some check on the quality of brokers being given registration. Also, SEBI will hike both capital adequecy and net worth of a broker further and link it with the maximum leverage they can be given.
The committee, which met on Thursday, was divided over reducing the settlement cycle to T+1 as foreign portfolio investors (FPIs) are strongly against the move.
Simply put, if you bought or sold stocks today, the settlement involving final money payment and transfer of shares is now done on the third day. For a few months now, SEBI has been deliberating on the idea of cutting down the settlement cycle to early morning of the next day of the trade.
FPIs told SEBI that they would face practical issues with a T+1 settlement cycle as they operate across multiple time zones and their custodians may not be able to handle settlements since the person in one time zone may be asleep when traders in India are punching orders.
SEBI on Thursday discussed the issue of faster trade settlement with the SMAC, which comprises members from stock exchanges, brokers and FPIs. The SMAC was divided in its opinion on the issue, the sources said.
But the market regulator is set to raise the minimum net worth criteria for stock brokers to ₹1 crore from ₹10 lakh on the BSE, the sources said. On the National Stock Exchange, the net worth requirement for a stock broker is already ₹1 crore. SEBI is also thinking on linking the leverage of a stock broker to net worth and liquid or disposable assets, the sources said.
SEBI is also likely to raise the capital adequacy ratio of a stock broker from around ₹50 lakh (base minimum capital) now to ₹1 crore.
Similarly, SEBI will raise the net worth criteria for self-clearing members to ₹10 crore, from ₹3-5 crore. The net worth criteria for trading-cum-clearing members is likely to be hiked to ₹25 crore. A clearing member is one who also takes the responsibility of settling client trades.
Social media influencers are flipping the rules by first getting followers and then launching products and ...
Paneer, once alien to the South, has found a lucrative market in Chennai
WPP agency Wunderman Thompson has launched its annual Future 100 report, lifting the lid on trends shaping the ...
Carriers claim that all measures — including pre-flight tests, cabin sanitisation and fresh air inflow — have ...
What filters should you apply when mining for under-the-radar small-cap stocks? Read on to find more
High valuation, intensely competitive landscape and small cap nature of the stock are key risks.
Amid choppiness, the benchmark indices slipped marginally; approach the week with caution
SBI Cards (₹1,032.7): Witnesses fresh breakoutBetween September and December last year, the stock of SBI Cards ...
A virus swept aside 2020 plans to mark the 250th year of the birth of Beethoven. We need the German composer’s ...
A mysterious new exhibit has been the centre of attraction at the gallery of Modern Art. This art work has ...
Tara was a curious little girl who loved to ask questions.She lived with her parents and her grandmother — ...
On the day the oleander baby was born, there was a steady, happy drizzle. Madhu woke up feeling unsteady. The ...
Social media influencers are flipping the rules by first getting followers and then launching products and ...
WPP agency Wunderman Thompson has launched its annual Future 100 report, lifting the lid on trends shaping the ...
Paneer, once alien to the South, has found a lucrative market in Chennai
The Flipkart kids playing adults are back — this time to push the home grown e-commerce marketplace’s grocery ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor