<ul>
<li>The Securities and Exchange Board of India (SEBI) has issued a new circular to streamline communication between stock exchanges and investors.</li>
<li>This circular consolidates all previous directives, ensuring a unified approach to investor notifications.</li>
<li>According to SEBI, stock exchanges must send transaction details to investors via SMS and email by the end of each trading day.</li>
</ul>
<p><strong>SEBI mandates real-time alerts for stock market transactions to enhance investor transparency and trust.</strong></p>
<h2><strong>SEBI's New Circular: Key Directives for Stock Exchanges</strong></h2>
<p>The new SEBI circular, spanning 414 pages, aims to enhance the transparency and efficiency of communications between stock exchanges and investors. One of the primary directives is that stock exchanges must send transaction details to investors through SMS and email alerts by the end of the trading day. This move is expected to provide real-time updates and foster greater trust among investors.</p>
<h3><strong>Implementation and Compliance Requirements</strong></h3>
<p>Stock exchanges are required to provide a platform for stock brokers to upload client details, which should ideally be in sync with the Unique Client Code (UCC) updation module. Brokers must ensure that the mobile numbers and email addresses of their employees are not uploaded on behalf of clients. Each client must have a unique mobile number and email ID, although exceptions can be made for family members under specific conditions.</p>
<h2><strong>Investor Confirmation and Verification Process</strong></h2>
<p>Once brokers upload client details, stock exchanges must verify this information by sending SMS and email confirmations directly to investors. Additionally, letters will be sent to the investors' registered addresses. Upon confirmation from investors, stock exchanges will commence sending transaction details directly to them.</p>
<h3><strong>Financial Implications and Funding</strong></h3>
<p>To support the implementation of these directives, SEBI has allowed stock exchanges to use 20% of the listing fees set aside for investor services. This funding will cover the costs associated with sending SMS and email alerts to investors, ensuring that the new communication system is sustainable and effective.</p>
<h3><strong>Conclusion</strong></h3>
<p>SEBI's new circular represents a significant step towards enhancing transparency and trust in the stock market. By mandating real-time transaction alerts and ensuring robust verification processes, SEBI aims to protect investors and foster a more transparent trading environment. Investors can look forward to more timely and accurate information, which will aid in making informed investment decisions.</p>
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