SEBI | Discontinuation of acceptance of cash by Stock Brokers.

SEBI has issued circular w.r.t. Discontinuation of acceptance of cash by Stock Brokers. 

SEBI has taken a decision keeping in view, various modes of payment through electronic means available today, directed all the Stock Brokers not to accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker. 

Accordingly, all payments shall be received / made by the stock brokers from / to the clients strictly by account payee crossed cheques/ demand drafts or by way of direct credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India.

Further, the stock brokers shall accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. Stock Exchanges are further directed to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above direction immediately.