The Securities and Exchange Board of India vide it’s circular dated 28th October 2021, has clarified that the Stock Brokers should maintain current accounts in appropriate number of banks (subject to the maximum limit prescribed by Stock Exchanges/SEBI from time to time) for holding the client funds (i.e., Client Account), for settlement purposes and any other accounts mandated by Stock Exchanges such as exchange dues account subject to condition that brokers are using these accounts for their defined purposes.
The clarification comes after Sebi received representations regarding the issue being faced by stock brokers in maintaining current accounts in multiple banks.
Further in order to ensure seamless settlement of funds and convenience to investors, sebi has clarified that the stock brokers shall maintain current accounts in appropriate number of banks for holding clients’ funds.
