In order to facilitate seamless settlement of funds and for the convenience of investors, the Securities Exchange Board of India ( “SEBI”) has clarified that Stock Brokers should maintain current accounts in appropriate number of banks (subject to the maximum limit prescribed by Stock Exchanges/SEBI from time to time) for holding the client funds (i.e., Client Account), for settlement purposes (i.e., Settlement Account) and any other accounts mandated by Stock Exchanges such as Exchange Dues Account subject to the condition that brokers are using these accounts for their defined purposes.
This circular has been issued to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Source : Securities Exchange Board of India
