Sebi proposes direct transfer of securities to clients' accounts

The Securities and Exchange Board of India (Sebi) is mulling direct payout of securities to the clients’ demat accounts by clearing corporations. Currently, the process is voluntary. The clearing corporation follows the process of crediting the securities payout in the broker's pool account. The broker then credits the same to the respective clients’ demat accounts.
 

“In a move to enhance operational efficiency and reduce the risk to clients’ securities, it has been deliberated to make the process of direct payout of securities to the client account mandatory,” said Sebi in a proposal on Thursday. Sebi has sought public comments by May 30.

Invit trading lot size may be reduced to Rs 25 lakh
 

The markets regulator has proposed to reduce the trading lot size of Infrastructure Investment Trusts (Invits) to Rs 25 lakh from Rs 1 crore. The proposal aims at increasing liquidity of privately placed Invits by allowing a broader base of investors to participate. Sebi said that the move will promote diversification of investment portfolio and enable investors to manage risk better. Sebi has also proposed a change in the norms for sponsors in Invits under which a change in the sponsor will be either due to a new sponsor or the exit of existing sponsors. “The proposed revision aims to clarify the possible changes in sponsorship, including the exit of a co-sponsor without necessarily inducting a new sponsor,” said Sebi.