Good New or Bad News for Share Traders
by Anurag T. IT ConsultantSEBI (Security and
Exchange Board of India) is working towards providing a new payment system to
Share Traders that will help you keep your money with you until you possess
your booked IPO slots or Stocks. That means you don't need to deposit the funds
in the broker's account and wait for the stocks to be available. Isn't it good?
Brokers won't be
getting any more interest on the money that we keep in their bank or wallet.
As per the current
system, we move our money from our bank account to the broker's bank account.
Only the money is used when the IPO slots are available, though not all of the
capital. There is still some money of us left in the broker's account. This
helps brokers to earn interest on money that is not even theirs.
'We are now
actively engaged in the ASBA (Application Supported by Blocked Account)-like
system for the secondary market. If you are buying shares, the money should
never leave the account until the settlement is done," as said by SEBI
Chairperson Madhabi Puri Guch in Global Fintech Fest 2022 held at Mumbai in
Reliance Office.
But everything has
its pros and cons. Now that we have our money with us arises, a question:
'Brokers don't have any alternatives to make money. Will that increase the
broking charges?' Because booking, as the word itself, represents a mediator
who would charge a significant amount for any service being provided. They have
been making money through interest, so we have been assigned a bit less booking
amount. However, this has been going on for over two decades.
But SEBI experts have their plans and technique. They won't be applying ASBA on the derivatives and alternatives; Cash markets are to be affected first by testing and implementation.
I am not sure if it's good or bad news, in any case. I consider myself the Hunt of Brokers because I will always have to pay till I am bankrupt. I recently spent over 1.5L INR in taxes. I wish that if the taxes were less, giving my money away to brokers would never have been a PIMA.
Source : Blogs
Written By : Anurag Tiwari
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Created on Nov 16th 2022 00:30. Viewed 233 times.