Prohibition on cash acceptance by stock brokers mandates non-cash settlements via electronic transfers or account-payee cheques. Brokers are prohibited from accepting cash from clients directly or by depositing cash into the broker's bank account; payments must be by account payee crossed cheques, demand drafts, direct credit via electronic fund transfer, or other RBI permitted modes, with brokers accepting cheques only if drawn by clients and issuing cheques only in favour of clients.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prohibition on cash acceptance by stock brokers mandates non-cash settlements via electronic transfers or account-payee cheques.
Brokers are prohibited from accepting cash from clients directly or by depositing cash into the broker's bank account; payments must be by account payee crossed cheques, demand drafts, direct credit via electronic fund transfer, or other RBI permitted modes, with brokers accepting cheques only if drawn by clients and issuing cheques only in favour of clients.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
