Capital market regulator SEBI has prescribed a standard format for seeking trading preference of clients for same product in different exchanges.
Currently, clients have to give separate authorisation letter in case they want to trade on different stock exchanges for the same segment or different segment.
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Based on the representations received and in consultation with stock exchanges, it has been decided to standardise the format of “Trading Preferences” in order to ensure that clients are permitted to access all the stock exchanges in which the stock brokers are registered for the same segment, said SEBI.
The provision comes into effect from August 1.
New mandate
All stock brokers have been mandated to register their new clients on all the active stock exchanges after obtaining the trading preferences as per the new format, said SEBI.
For existing clients, the stock brokers are mandated to offer them access on all the active stock exchanges for the segments already opted by them, as a default mode, within three months and inform their clients through email / SMS, it added.
Clients shall be given a choice to opt out of such access by providing negative consent and the stock brokers have to activate or deactivate the segments based on the preference of the clients, said SEBI.