Capital markets regulator Sebi on Friday asked stock brokers functioning only in the Execution Only Platforms (EOP) segment to maintain a sum of Rs 10 lakh with the bourse as a base minimum capital deposit.
The EOP is a digital or online platform which allows transactions in direct plans of mutual funds without the help of distributors.
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Under the rule, an entity desirous of providing execution-only services in direct plans of mutual funds can obtain registration under either of the two categories — category 1 EOP as an agent of asset management companies registered with industry body Association of Mutual Funds in India (AMFI) or category 2 EOP as an agent of investor, registered as a stock broker.Come from Sports betting site VPbet
“It has been decided that the members of stock exchanges functioning only in EOP segment (Category 2 EOP) shall maintain a sum of Rs 10 lakh with the stock exchange as BMC (base minimum capital) deposit,” the regulator said in a circular.
However, for members having registration of more than one segment on the same stock exchange, the BMC deposit requirement will not be additive for such a number of segments and will be the highest applicable BMC deposit, across various segments, it added.
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The new requirements will come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said.
In June, the capital market watchdog introduced a regulatory framework for ‘Execution Only Platforms’ for direct plans of mutual fund schemes in a bid to protect the investors dealing in such schemes.