Voluntary freezing of trading accounts: How will SEBI’s new norms safeguard investors?
Economy Business
Market regulator Securities and Exchange Board of India (SEBI) has asked stock brokers' Industry Standards Forum (ISF) to lay out a framework to provide a facility for voluntary freezing or blocking the online access of the trading account to their clients due to suspicious activities. SEBI has decided that a framework for trading members to provide the facility of voluntary freezing/blocking the online access of the trading account to their clients on account of suspicious activities will be laid down on or before April 1, 2024. The guidelines will be formulated by the Brokers’ Industry Standards Forum (ISF) under the aegis of stock exchanges, and in consultation with the capital markets regulator.
Starting July this year, investors will be allowed to freeze or block their trading accounts in case they notice any suspicious activity.
Securities and Exchange Board of India (SEBI) has asked stock brokerages to lay out a framework on this by April 1 and implement it from July 1, 2024.
About SEBI (Securities and Exchange Board of India):
Founded: 12 April 1988,
Founder: Government of India, Headquarters: Mumbai, Maharashtra
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