What are the new rules announced by SEBI for trading in stock market

 Instructions to the brokerage house to increase the current account

Making the same announcement this morning, the Securities & Exchange Board of India has ordered stock broking companies to maintain current accounts in appropriate number of banks for the convenience of investors investing in the India stock market. For a long time, SEBI was getting complaints about the problems being faced by some investors. In view of these problems of the investors, SEBI has issued instructions to the stock broking companies and requested that the broking companies should maintain adequate number of current accounts in many banks so that the customers of the companies do not face any problems.

New Announcement by SEBI, Security exchange board of India:

SEBI issued a circular wherein it is clarified that "It is clarified that stock brokers shall be required to maintain client funds (client account) for settlement purposes (settlement account) as may be prescribed by appropriate number of banks (stock exchanges / SEBI from time to time). but up to the prescribed maximum limit). “It is essential that the broker should use these accounts for the prescribed purpose and for the right purpose.

Rules have relaxed for Issuance of Shares having high voting rights:

Let us tell you that SEBI has relaxed the rules related to issuance of shares with higher voting rights. These steps taken by SEBI are also in the right mind by the experts of the stock market. This step taken by AB will help the modern technology based companies. Sebi said promoters with a net worth of more than Rs 1,000 crore may have more voting rights in their companies. It has been increased to Rs 1,000 crore from the current Rs 500 crore.

How much net worth required to shareholders for Voting rights as per new SEBI Rules?

In the notification, SEBI officials said that the net worth of shareholders with more voting rights shall not exceed Rs 1,000 crore as determined by the registered valuers. SEBI as a regulator said that while measuring the personal net value of a shareholder with superior voting rights (SR), investor or shareholder investment/holding in other listed companies will be considered, but investor shareholding in the issuer company will not be taken into account.

How much time Gap is required between issuance of SR Shares & Statement book as per SEBI New rules.

Further, Regulator of SEBI discussed that It has reduced the minimum time period gap between issuance of SR shares and submission of statement book has been reduced to three months from the existing six months. We would like to update that SEBI regulator had already in the year of  2019 launched  a framework with more voting rights specifically for technology-based issuers. The benefit of This rule allows the issue of SR shares to the promoters/founders holding executive positions in the company desirous of getting listed on the stock exchange. Also rights for voting shares give the promoter/founder of the organisation  the to make voting in company & its board of directors and control over the company's affairs. This rule can also be effective in protecting against forced acquisition.

SEBI keeps on introducing new rules with time and some good announcements also happen in favour of investors. Therefore, brokers and investors should always be up to date with the new rolling.