It’s Sebi vs FPIs, brokers on T+1

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MUMBAI: Markets regulator Sebi and the brokers on Dalal Street are currently in a face-off relating to trading processes in the stock market. Sebi’s insistence on continuing with a very high margin requirement for all types of cash trades, called peak margin, has been met with strong resistance from the broking community.
As the issue relating to margin was being discussed between the regulator and the brokers, Sebi decided to move to the shorter T+1 settlement cycle from January 1, 2022.
On the second issue, although it will be optional when it begins next year, foreign investors have joined hands with brokers, saying that post-trade procedural time lags may lead to hurdles in shifting to a shorter settlement cycle. With no solution in sight, the issue has reached the finance ministry and may even land in court, industry sources said.
Sources within the regulatory body said that…

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