Market regulator Sebi on Monday proposed to ban brokers from recommending shares to investors based on subjective and arbitrary information, as part of the exercise to guard against insider trading.
The guidelines, on which Sebi has invited comments from public by April 15,further said that investors would be required to have a minimum net worth of Rs 5 lakhs for trading in derivative segments.
Brokers, it added, "shall not executive transactions for own account in securities ahead of making recommendations to their clients in such securities."
Brokers would also be prohibited from executing contracts which are "not explicitly authorised" by their clients
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