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Home Personal Finance Post Office Great Scheme: Big news! By depositing 10K in this scheme,...

Post Office Great Scheme: Big news! By depositing 10K in this scheme, you will get more than 7,00000 lakhs, know how

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Post Office Great Scheme Big news! By depositing 10K in this scheme, you will get more than 7,00000 lakhs, know how

Post Office Scheme: Brokers’ association ANMI had written a letter to Sebi on June 26 expressing its concern and requested to allow depositing of long-term FDs that have been deposited till July.

Post Office Scheme: Brokers in the equity market have objected to a circular by SEBI. In this circular, the market regulator SEBI has instructed that for margin, they will give such fixed deposit receipts to the clients, whose maturity period is less than 365 days i.e. 1 year. Brokers say that this condition will cause a big loss to their clients because most of them have deposited only such FDs whose maturity is less than 365 days and they may have to pay a heavy penalty for withdrawing money before maturity. Brokers’ association ANMI had written a letter to Sebi on June 26 expressing its concern and requested to allow depositing of long-term FDs that have been deposited till July.

In the current method, brokers give the bank FDs worth crores of clients to the clearing corporation of the stock exchange for taking the trading limit. For client linked trading limits, brokers deposit FDRs (fixed deposit receipts) taken from clients. They submit their own FDRs for proprietary trades. But on June 6, a SEBI circular said that such FDRs which do not meet SEBI’s conditions will not be valid after July 1.

SEBI circular has put certain conditions regarding FDs of clients given by stock brokers to CCs. This is called “upstreaming of client circulars”, where brokers deposit CCs by taking FDs from clients. It has been said in the circular that every FDR should be marked in the name of CCs and their tenure should not be more than 1 year. It further states that such FDs are required to be pre-terminable as and when required, and the principal amount of the FDR will remain protected throughout the tenure, irrespective of the withdrawal of its cost, in case of pre-termination. SEBI had also said that brokers will not be able to avail any funded or non funded banking facilities on the FDR of client funds.

Brokers have urged SEBI to allow such FDRs, which have been submitted till July, 2023. Zee Business has the letter written by ANMI to SEBI. It states that “We seek relaxation of maturity period of existing FDs and want that FDs created after July 1, 2023 should be allowed more than 365 days, because one FDs of 365 days and 365+1 days There is difference in returns, secondly tenure of maturity is also different. By imposing 365 days limit our members will suffer on returns from FD. If there is any apprehension on FD more than 365 days, let us know so that we can sort it out Can or give any suggestion.

ANMI’s letter further states that putting a hold on the fund receipt of clients, especially in case of MTM (market to market) clients, doing so would create unnecessary hardships for both brokers and clients. On this the association has said that “If the receipt of client’s funds is withheld, the client will not be able to trade in the morning of the next trading session and brokers will also face difficulties in T+O settlement in FNO and T+1 settlement in cash market.” Might.”

In addition, Brokers’ Association ANMI has initiated discussions with CC pushing for implementation of new FDR norms for proprietary trading. However, a member told Zee Business that there is no mention about this in the SEBI circular.

“CCs were causing some confusion on depositing FDr for Proprietary Traders. Brokers say the Exchange has informed them that upstreaming of clients’ funds is not applicable to the extent of Proprietary Funds. CCs issued a clarification last week The tax said that all the existing FDRs inscribed with it will have a residual maturity of 1 year.

CCs had issued clarifications last week, stating that all existing FDrs marked as lien will have a residual maturity of 1 year and FDrs that do not meet the norms will have to be released by July 1, 2023.

The email sent to SEBI on ANMI letter is yet to receive a reply.

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