01-01-1970 12:00 AM | Source: Reuters
India`s markets regulator stops brokers from creating bank guarantee on client funds
India's markets regulator on Tuesday barred brokers from creating new bank guarantees on clients' funds starting May 1, and said all existing bank guarantees should wind down by Sept. 30.
Currently brokers and other intermediaries pledge clients' funds with banks, which in turn issue guarantees to clearing corporations for higher amounts.
The Securities and Exchange Board of India (SEBI) said in a circular that this 'implicit' leverage exposes the market, and especially the client's funds to risks.
Stock exchanges and clearing corporations have been asked to monitor the winding down of bank guarantees in an orderly manner, the SEBI said
Latest News
Vestian: Strong start to office markets, sustained l...
Govt allows export of 99,150 tonnes of onion to 6 co...
Buy Varun Beverages Ltd For Target Rs. 1,463 - JM Fi...
27 Indian startups secure over $222 million in fundi...
ICICI Bank posts 17 per cent rise in Q4 net profit a...
Touched 5 mn UPI transactions monthly after Paytm pa...
Generative AI to transform legal tech market with au...
SBFC Finance Soars in Q4FY24, Ending Year on a High
Kiya.ai Strengthens Its Global Footprint in the Phil...
Coming Week's Market Report by Alex Volkov, Market A...