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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Ease of Doing Investments by Investors- Facility of voluntary freezing/ blocking of Trading Accounts by Clients

12-Jan-2024 | SEBI/HO/MIRSD/POD-1/P/CIR/2024/4

SEBI has issued circular on Ease of Doing Investments by Investors- Facility of voluntary freezing/ blocking of Trading Accounts by Clients.

By virtue of this circular facility of voluntary blocking/ freezing of trading account is made available for investors also which was previously avilable for demat accounts only.

It has been decided that the framework for Trading Members to provide the facility of voluntary freezing/blocking the online access of the trading account to their
clients on account of suspicious activities shall be laid down on or before April 01, 2024, by the ISF, under the aegis of stock exchanges, in consultation with SEBI and the same shall, inter-alia, contain necessary guidelines.

Further, the Stock Exchanges shall ensure that the guidelines so issued under the aforesaid Framework are implemented by Trading Members with effect from July 01, 2024. Stock Exchanges shall also put in place an appropriate reporting requirement by Trading Members to enforce the above system. A compliance report to this effect shall be submitted to SEBI by Stock Exchanges latest by August 31, 2024.

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