Discontinuation of acceptance of cash by Stock Brokers
Government of India has promoted various means for transfer/receipt of funds through digital mode for encouraging a cashless economy. Financial institutions/ Banks have introduced various modes of electronic payment facility including Mobile Banking, Unified Payment Interface (UPI) etc.
In view of the various modes of payment through electronic means available currently in India, SEBI circular on 'Modes of Payment and Delivery' dated August 27, 2003 has been modified as under:
"All payments shall be received/made by the stock brokers from/to the clients strictly by account payee crossed cheques / demand drafts or by way of direct credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India. The stock brokers shall accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker."
