MUMBAI: Sebi chairperson Madhabi Puri Buch on Tuesday said that soon the regulator would put a proposal to its board, the highest decision-making body within the markets regulator, to make T+0 settlement system compulsory for all. After launching it in voluntary mode in March this year, Sebi had given time to brokers to adjust to the T+0 settlement system, something that its board had allowed.
The Sebi chief also said the regulator was working to bring down the minimum amount that an investor can invest in a mutual fund scheme through the systematic investment plan route to Rs 250.Most MFs now offer SIPs with the minimum ticket size fixed at Rs 500.
The Sebi chief also said that it will follow a strict KYC regime for investing in the entities it regulates and will not allow a “Paytm-like contamination”. Last Jan, banking regulator RBI had asked Paytm Payments Bank to stop most of its services after the bank was found to have violated the know your customer (KYC) norms on several occasions and despite regulatory warnings.
The Sebi chief was interacting with the audience after releasing a report on the Indian Capital Market and launching a dedicated website for passive funds at NSE in the city.
The top regulator said that it was quite a while that the T+0 settlement system was launched on a voluntary basis and indicated it was about time it was made compulsory. As of now only a select few brokers can offer their clients to trade within the T+0 settlement system.
Under this system, all buyers and sellers who put in their trades by 1.30pm during a trading session, receive their stocks and funds in their accounts by the end of the day. For the wider market, the settlement is on a T+1 basis, meaning securities and funds are credited to the buyers and sellers account the next working day.
The Sebi chief also said that the regulator would soon come out with a consultation paper that would aim to eliminate bad impacts of financial influencers (finfluencers in market parlance) on investors. It’s also working on ways to make it easier for investment advisors to get Sebi registration.
The Sebi chief also said the regulator was working to bring down the minimum amount that an investor can invest in a mutual fund scheme through the systematic investment plan route to Rs 250.Most MFs now offer SIPs with the minimum ticket size fixed at Rs 500.
The Sebi chief also said that it will follow a strict KYC regime for investing in the entities it regulates and will not allow a “Paytm-like contamination”. Last Jan, banking regulator RBI had asked Paytm Payments Bank to stop most of its services after the bank was found to have violated the know your customer (KYC) norms on several occasions and despite regulatory warnings.
The Sebi chief was interacting with the audience after releasing a report on the Indian Capital Market and launching a dedicated website for passive funds at NSE in the city.
The top regulator said that it was quite a while that the T+0 settlement system was launched on a voluntary basis and indicated it was about time it was made compulsory. As of now only a select few brokers can offer their clients to trade within the T+0 settlement system.
Under this system, all buyers and sellers who put in their trades by 1.30pm during a trading session, receive their stocks and funds in their accounts by the end of the day. For the wider market, the settlement is on a T+1 basis, meaning securities and funds are credited to the buyers and sellers account the next working day.
The Sebi chief also said that the regulator would soon come out with a consultation paper that would aim to eliminate bad impacts of financial influencers (finfluencers in market parlance) on investors. It’s also working on ways to make it easier for investment advisors to get Sebi registration.
