Live Markets »News & Advice»Market News»Market News Details
Market News Details
Back

Digital payments: Sebi bars stock brokers from accepting cash from clients

Press Trust of India/New Delhi 13 Jul 18 | 01:26 AM

Sebi. (Photo: Kamlesh Pednekar)

Sebi on Thursday barred stock brokers from directly accepting cash from their clients as it looks to promote digital payments.

Related Stories

    No Related Stories Found
Widgets Magazine

Besides, stock brokers are not permitted 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 stock broker," the regulator said in a circular.

According to Sebi, all payments would 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 (RBI).

ALSO READ: GST: Ministerial panel favours deferment of sops for digital payments

"The stock brokers would accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker," it added.

Also, the government has been promoting various means for transfer or receipt of funds through digital mode for encouraging a cashless economy.

Financial institutions and banks have introduced various modes of electronic payment facility including mobile banking, Unified Payment Interface (UPI) etc.

Widgets Magazine

Sensex

Company Price Gain (%)
Sun Pharma.Inds.559.902.72
Infosys1,348.352.42
Reliance Inds.1,128.552.23
ICICI Bank266.001.84
Axis Bank534.451.36

Poll

Currently No Poll Available.

Online Portfolio

You can create Online Portfolio here using the below button.

Widgets Magazine