MUMBAI: SBI has prohibited its employees from opening demat or trading accounts for themselves or their dependents with providers outside of the SBI Group, without prior permission from top executives. The bank has also instructed employees to close any existing accounts within six months if they do not have the permission to maintain them.
The bank stated the reason to be that it needs to establish a system where it can monitor or place restrictions on employees’ stock market activities.This directive is due to the fact that the SBI Group provides trading and demat services through its subsidiary, SBI Securities. The bank’s circular directing officers and award staff was issued as employees opted for demat accounts outside the Group.
