SEBI asks brokers to furnish Income proofs of Investors
SEBI is now serious in implementation new rule to prevent black money to enter in Indian markets.This rule was to be implemented from December 2009 but brokers were not taking it seriously,now SEBI is taking strict measures to ensure that these steps are implemented.
Brokers and clients have to now get documentary evidence for financial information which would include copies of Income Tax Return (ITR) acknowledgement, annual accounts, Form 16 for salary income, net worth certificate, salary slips, bank account statements for six months, demat account holding statements and asset ownership certificates.
Arbitration Proceeding To Be Expensive
From 1 september arbitration proceedings to settle disputes between brokers and investors are set to become more expensive.Under new mecahnism if a complaint needs to be taken up six months after a transaction, the investor has to pay `33,390-43,000 for claims below `10 lakh.