Latest Important Circulars

Dear Investors,

Greetings from Anup Gupta!

After being in the world of finance for more than 25 years now and continue, I was suggested by a dear friend; why not share some of your experience with others. Hope I can connect with you all.

I am a fan of regulation, and though at times have got annoyed with the constant regulations and changes by all our regulators, have realized that, they are in the benefit of all, and especially the investors.

So I sincerely thank the regulators for bringing in discipline, transparency and accountability for the capital markets. It is the best thing that has happened for the investors. There are still various issues which are being represented, to increase investor participation in the capital markets, of which I am also a part of, but I am sure the big picture has been well accepted by one and all.

Another recent regulation concerning updation of email ID and the Mobile number of the Investor will help to reduce the no. of complaints related to unauthorized trading is one of the best things that can happen for the investors and for better regulations of the Capital markets.[NSE Cir. No. NSE/INSP/27339 dated Aug 12, 2014, NSE/INSP/27368 dated Aug 18, 2014 and BSE Cir. No. 20140811-25 dated Aug 11, 2014]

The gist of the circulars is; the brokers have to collect the email Id and Mobile no of all clients who want to participate in the Capital markets and upload the same to the Exchanges, latest by 30^th September.

Now why I am really happy about this circular is the multifold benefits this will have in the overall transparency to the markets is;

From the client perspective: It will ensure same day confirmation of trade to the client, as the email and SMS would be send to the client by the exchanges, there would be enhanced authenticity, most of the brokers also have been sending the confirmations by email and also sending SMS to clients to confirm the trade so placed by the client. If any discrepancy, the same could be resolved on the same day, thus avoiding disputes and unwanted loss.

For the Broker: It would help in sending email & SMS to all the investors , confirming trades executed on their behalf and error if any, could be reported to the broker on the same day itself. It would help further in making margin calls wherever required. It would also enable brokers to give price alerts to clients to further improve services to clients.

For the Regulator: The exchanges would directly email and SMS the trade confirmation directly to the investor, imposing a stamp of further transparency and reliability to the clients participating in the capital markets. It would prevent any kind of misuse by the investor or the dealer, and would greatly help in reducing the complains of unauthorized trading.

Hence I say, this circular is very helpful for all the retail investors, and they should ensure that, their right email Id and mobile no is uploaded by the brokers to the Exchanges.

The markets are looking good in the long term and it would be a pity if you, as investors are deprived of participating in the markets for a simple compliance, of not having an Email Id or a Mobile No.

The views expressed by me are my personal and request every investor to take his own decisions before investments in the capital markets. Remember that all investments are subject to risk and the writer or the company or any of its assigns would not be held responsible for any investment decisions taken by the public based on this article. The writer is the director of Sykes & Ray Equities and actively invests in the capital markets.