SEBI has come out with proposed pointers on therapy of unclaimed funds and securities mendacity with brokers.
As per present norms, brokers are required to settle the credit score stability of shoppers mendacity with them on the primary Friday and/or Saturday of each month or quarter. If a member is unable to settle the consumer accounts on account of non-availability of financial institution accounts or non-traceability of shoppers, brokers should make all efforts to hint the shoppers to settle their funds and keep an audit path.
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In line with the brand new guidelines, such consumer accounts can be put below ‘enquiry standing’ and brokers will contact the shoppers instantly. Consumer funds could be parked in liquid mutual funds or in a single day schemes and upstreamed to clearing companies inside 30 days of the funds changing into unclaimed.
Untraceable shoppers
For untraceable shoppers, the introducer of the consumer, nominee, employer or another associated individual can be contacted.
If the dealer is a declared defaulter, all unclaimed funds can be downstreamed and transferred on to the devoted checking account of the devoted inventory change. Funds remaining unclaimed for a yr can be equally downstreamed and transferred.
