Prohibition on cash payments: broker client settlements must use account payee cheques or electronic transfers and demat beneficiary delivery. Brokers and sub brokers must not accept or give cash for client obligations or margins; payments shall be by account payee crossed cheques, demand drafts, direct credit/EFT or other RBI permitted modes, with cash accepted only exceptionally within income tax limits. Securities delivery must be in demat mode directly to or from clients' beneficiary accounts except where delivery to a recognised entity is authorised under an approved exchange or SEBI scheme. Exchanges must amend bye laws, notify members and report implementation.
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 payments: broker client settlements must use account payee cheques or electronic transfers and demat beneficiary delivery.
Brokers and sub brokers must not accept or give cash for client obligations or margins; payments shall be by account payee crossed cheques, demand drafts, direct credit/EFT or other RBI permitted modes, with cash accepted only exceptionally within income tax limits. Securities delivery must be in demat mode directly to or from clients' beneficiary accounts except where delivery to a recognised entity is authorised under an approved exchange or SEBI scheme. Exchanges must amend bye laws, notify members and report implementation.
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