SEBI is working on to ensure that the brokers would make sure that the “zero balance” on their client’s trading account, the aim of it would be to prevent misuse of the client’s funds by brokers. The balance cash at the clients account should be given back to the client by way of a cheque with a grace period of one week.

This move would bring in more clarity to the dealings and also the client should sign a balance conformation slip by every financial year end. The account issue was taken up by the Secondary Market Advisory Committee (SMAC), The committee is also planning to introduce different colours for each type of trades in the ‘Individual Client Registration Form’, which would ensure that
the client is aware of the market segments (like cash, derivatives, debt markets) he intends to deal with. It has also been decided that the number of signatures the client has to sign has been reduced. It will require only half a dozen signatures while at present its 20 signatures. After the agreement the copy of the agreement should be given to the customer.

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