This consultation paper, if implemented, significantly simplifies the DP operations of stock brokers. Today, when a client buys stock, it gets credited to the broker pool account, and then the broker credits it to the customer. In the new way proposed, the shares will get directly credited to the customer’s demat.

Even without this regulation, we’re probably the safest financial market in terms of the security of customer assets, given that everything is in the customer’s own demat. This regulation will further enhance that.

View on Twitter →