SEBI (Securities and Exchange Board of India)\u00a0 is the regulator of the securities market in India. It has the responsibility of protecting the interests of investors who invest in securities such as shares, bonds, mutual funds, etc. SEBI has recently introduced a new system to ensure that investors\u2019 money and securities are safe and not misused by brokers or intermediaries. This system is called <\/span>Segregation and Monitoring of Collateral at the Client Level<\/span><\/i>.<\/span><\/p>\n The new SEBI regulation states that:<\/span><\/p>\n The new system of Segregation and Monitoring of Collateral at the client level requires that:<\/span><\/p>\n In layman’s terms, consider the following example: <\/i><\/b> Suppose you want to buy some clothes from an online store. You have to pay some money in advance to the store as a security deposit. This money is your collateral. The store is the broker who helps you buy the clothes from the seller. The seller is the clearing house that delivers the clothes to you. The stock exchange and the clearing corporation are the authorities that regulate the transactions between the buyers and sellers.<\/span><\/p>\n Now, there are two ways the store can handle your collateral:<\/span><\/p>\n Hope this helps you to understand how SEBI is trying to protect individual investor\u2019s money from other investors or a matter of fact, from the broker\u2019s money, which it uses for other purposes than investor\u2019s money.<\/span><\/p>\n To conclude, let me give you another example with shares. Suppose you want to buy some shares of a company listed on the stock market. In order to do so, you have to deposit some money or shares with your broker as a margin or collateral. This is the money or shares that you give to the broker as a guarantee for trading in the stock market.\u00a0<\/span><\/p>\n Here, Paytm Money is the trading member who helps you buy and sell shares from the clearing member. The clearing member (here Paytm Money is self-Clearing Member) is the intermediary who delivers the shares to you from the clearing corporation – CC (CCs are ICCL i.e. Indian Clearing Corporation Ltd. a subsidiary of Bombay Stock Exchange \u2013 BSE & NCCL i.e. National Clearing Corporation Ltd. a subsidiary of National Stock Exchange \u2013 NSE). The stock exchange and the clearing corporation are the authorities who regulate the transactions between buyers and sellers.<\/span><\/p>\n Now, there are two ways Paytm Money can handle your margin or collateral:<\/span><\/p>\n The new way is what SEBI has introduced for the securities market in India. It is called <\/span>Segregation and Monitoring of Collateral at Client Level<\/b>. It ensures that your money and securities are safe and are not misused by the brokers or intermediaries. It gives you more transparency and control over your margin or collateral.<\/span><\/p>\n Kindly refer to the relevant<\/span> SEBI<\/span><\/a> &<\/span> NSE<\/span><\/a> Circulars here.<\/span><\/p>\n Disclaimer:<\/strong> Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking \u2013 INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete Terms & Conditions and Disclaimers visit: <\/span>https:\/\/www.paytmmoney.com<\/span><\/a>.<\/span> What is SEBI, and what does it mean to you? SEBI (Securities and Exchange Board of India)\u00a0 is the regulator of the securities market in India. It has the responsibility of protecting the interests of investors who invest in securities such as shares, bonds, mutual funds, etc. SEBI has recently introduced a new system toContinue reading “SEBI\u2019s Smart & Simple System to Ensure Your Money & Securities Are Safe”<\/span><\/a><\/p>\n","protected":false},"author":24,"featured_media":4587,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-classic-ns.php","format":"standard","meta":{"footnotes":""},"categories":[8,6],"tags":[],"class_list":["post-4586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","category-personal-finance"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/4586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=4586"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/4586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/4587"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=4586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=4586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=4586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Why this new rule was needed?<\/b><\/h2>\n
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Details of the change:<\/b><\/h2>\n
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How does the new system benefit investors?<\/b><\/h2>\n
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\n<\/span>Let\u2019s understand these complex terminologies with a very simple yet real life example.<\/span><\/p>\n\n
Conclusion Paytm Money Way:<\/b><\/h3>\n
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\n<\/span>Written by: Alpesh Soni<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"