* Important for every investor working in the stock market: Radical changes are being made by SEBI with effect from 01-09-2020. Most of these rules are absurd but every investor has to follow them. *
* Absurd Rule No. 1: *
* Every investor has to deposit margin before making any transaction i.e. before buying or selling shares. Margins have to be deposited as there are different margins for each scrip. If the margin deposited is less then penalty has to be paid which will be credited directly to BSE / NSE exchange. *
* Absurd Rule No. 2: *
* The investor will also have to pay full margin to sell the shares of his demat account. You will also have to pay a full margin to sell the shares in the IPO. *
* Shares of one company cannot be sold and other shares cannot be taken against it. If this is to be done then double margin has to be paid or one side margin has to be filled and wait for 2 days. *
* Absurd Rule No. 3: *
* BTST means if you take it today and sell it tomorrow, you will have to pay double margin. For example if you want to buy shares of this XYZ company which has a margin of 30% then you have to deposit 30% margin i.e. before Rs.3000 to buy shares of that company for Rs.10000. Now you have to deposit another Rs.3000 to sell those purchased shares the next day. Thus a margin of Rs 6000 has to be deposited for the sale of shares of Rs 10000. *
* Absurd Rule No. 4: *
* In case the investor sells shares from his demat account, OTP will be sent to the investor's mobile number and email. That OTP will only last for 10 minutes. The investor will enter this OTP on the website in just 10 minutes after which the shares will be transferred from his account to the broker's account. The shares of the investor who fails to enter this OTP will be auctioned. The loss will be borne by the investor. Due to such a rule, every investor has to continue to use the internet with a smart phone. Senior citizen investors will almost certainly have to stop working on the stock market. Every investor has to put his business aside and wait for the OTP. *
* A few months back, SEBI Chairman Ajay Sinha had issued a statement saying that investors should invest in mutual funds instead of investing in the direct stock market. Thus, it seems that such rules are being introduced with the intention of not benefiting the syndicate of mutual funds and top brokers. There seems to be a conspiracy to shut down the small brokers in the stock market and to benefit the top brokers. *
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