Indian Stock Market Regulator Securities Exchange Board of India is currently looking at stricter guidelines to improve sales practices by members of the stock exchanges.
In a draft policy, SEBI proposes making it necessary for investors to have a minimum net worth for trading in futures and options. It has also proposed banning brokers from recommending shares to investors based on subjective and arbitrary information.
It is also looking at not allowing broking community from executing trades for their own accounts, before making such recommendations to their clients.
Brokers would also be prohibited from executing contracts which are ‘not explicitly authorized by their clients. SEBI has invited comments from the public on these guidelines by April 15.
Posted by krishna Raj 