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The New SEBI Guidelines May Alter The Way You Trade Stocks Online

01 Dec 2023

In the recent few months, many new traders have entered the space of trading. Ever since the beginning of the pandemic. This trend has been increasing. While it can be exciting to trade in the stock market and make profits, it is also important to understand the terms and conditions that come along with intraday trading. When it comes to the guidelines set for online stock trading, Securities and Exchange Board of India (SEBI) is the regulatory board that sets new guidelines and ensures that they are followed thoroughly. The new SEBI guidelines that have been announced is what will be discussed in this article.

  • What Is New With SEBI Guidelines?

The new SEBI guideline allows you to trade stocks online in a more convenient manner. These new guidelines are more investor-friendly. They are also more transparent while also reducing the risk with regards to intraday trading. These new SEBI guidelines make trading more reliable for the users as it brings in more transparency into the broking ecosystem. This way, it gives more power to the investors. Here are some ways in which these new guidelines can change the way in which you trade.

1. Pledging of Shares

The shares that are available in the Demat account of the trader will not be moved to the bank account of the investor if the investor will pledge for shares for margin requirement. The creation of the lien will happen on behalf of the broker. The broken will then require an OTP from the investor for permission. 

2. Intraday Trading

The profits made from an intraday trade cannot be further used for more trades in the same day. For investors who trade in bulk, the margin requirement will be high. Until the minimum margin requirement is fulfilled, investors can’t avail of leverage. 

3. Delivery of Shares

With delivery of shares, your intraday trading habits will be largely unaffected. Especially for bank-owned brokers in cases where stocks or money are blocked from the linked bank account, this is true. 

In Conclusion

With these new SEBI guidelines in place, investors can benefit from them. It is also best to check with your broker for certain processes and charges with the effect of the new guidelines. This way, you can continue to trade stocks online in a hassle-free manner. To trade stocks, you should have a demat account and an online broking account. If you do not yet have a demat or a trading account, Motilal Oswal is the best place to visit. 


Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account


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