Mumbai: Capital market regulator SEBI has made drastic changes in the rules of share purchase and sale from September 1, 2020, in the name of protecting investor interest. In the midst of the Corona epidemic crisis, these absurd rules implemented have caused a stir in the stock market. While they are expected to have a huge impact on the business of small stockbrokers, investors are also distracted by these Tughlaq rules. Unheard of brokers’ demand for postponement of the rules to be implemented from September 1, the immediate opposite effect was that on Wednesday, for the first time in 25 years the settlement was not completed on the NSE. Because there is a lot of pressure on the depository and clearing system. Also, cash trading in exchanges has come down by 40%. This is a big setback for brokers in the Corona era. However, on Thursday late evening, NSE has given some relief to the brokers by giving 15 days exemption in the penalty
Most opposed to these rules
The new rules of ‘SEBI’ which are being opposed the most, the first rule is that till now the broker used to trade in the stock market, allowing you to buy or sell shares even without margin, but now under the new rule Under the cash segment, there will be minimum 20% margin. Only then will the investor be able to deal. Secondly, after selling the shares, you used to get money after 2 days of trading, but the broker allowed you to buy other shares in exchange for the shares sold. Now this will not happen. Now when you get the payment on the third day, only then you will be able to buy other shares with that money. That is, your money will be blocked for two days. Brokers and investors are most opposed to these absurd rules. And they are being mocked on social media too.
Nobody benefits, vice versa: ‘Enemy’
The NSE member stock brokers ‘Enemy’ says that there is a need to change the system which has been in operation for 30 years so that SEBI is adamant on implementing it even in the critical situation of Corona epidemic. Added, this is beyond comprehension. There were big falls in the market, but settlement was delayed sometime. Now that everything was going well, Sebi has changed the rules and put everyone in trouble. The new margin system and the pledge-replacement of shares are causing huge problems and the entire depository and settlement system is being disrupted. Due to these rules, there has been a huge decline of about 40% in the cash segment business. And from December, the proposed peak margin will be reduced by 70%. SEBI wants to close it by imposing 100% margin on intra-day trading. What will be the condition of the Indian market when there is no intra-day trading? Surprisingly, investors, brokers and the government do not have any benefit from these rules, the opposite is the disadvantage. Yet SEBI officials are adamant on their insistence.
Why did SEBI object to giving credit to investors?
A director of ‘Enmy’ says that ‘SEBI’ says that if a broker does not misuse his investor client’s fund, then we are with SEBI in this matter, but if the investor does not use the broker’s fund then it Is wrong and we oppose it. If the broker gives credit to his client for running his business, then why does Sebi object to this? Every business runs on credit (borrowing). Then why are brokers’ livelihoods being put in trouble by closing the credit system in the broking business itself? The government wants to make ‘Ease of Doing Business’ easy in every business and on the contrary, SEBI wants to close the business of honest brokers by imposing all the reverse rules directly on the brokers. The SEBI is not tightening its grip on the greedy company promoters who have been attacking investors. The government should intervene in this matter soon.
Difference between Government and SEBI’s intention
Stock market analyst n. K. The Indian said that these rules of ‘SEBI’ seem to be Tughlaq’s decree. These rules will greatly reduce the market participation of retail investors and will have the worst impact on the business of small brokers. Which has also been seen in the last three days. Because till now brokers used to invest their money and give investors the facility to buy, but now they will not be able to give credit to the investor. Which will reduce their business and spread unemployment. The job of SEBI is to protect the interests of investors, but the interests of investors are also being affected. If someone sells his own shares, he has to pay margin first. An investor cannot buy shares of the same value on the same day by selling his shares. How strange are these rules? What is the object of SEBI in this? The government says that the market participation of retail investors should increase and ‘SEBI’ is preventing retail investors from coming into the market. The intention of the government and SEBI seems to be different here. Why this difference? Retail investors are the backbone of the stock market, only then do institutional investors come.
Greedy promoters get an IPO at arbitrary prices
Brokers say that SEBI officials often issue such impractical orders. The biggest reason for this is that most SEBI officials do not have practical knowledge of the stock market, only theoretical knowledge. That is why they make such absurd rules that retail investors lose rather than profit. After demonetization, suddenly the trading of shares of many companies was banned.
