Home/Blogs/The New SEBI Guidelines May Alter The Way You Trade Stocks Online

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

stock market
Published Date: 16 Sep 2021Updated Date: 13 Jan 20256 mins readBy MOFSL
 New SEBI Guidelines

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: Intraday Trading Explained | 6 Online Stock Trading Strategies For Beginners | A Beginner's Guide To Online Stock Trading | What You Need to Know Before Using a Stock Trading App

You may also like…

Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C