Most Brokers have outsourced the task of registering new accounts.of Investors These marketing men have no idea of SEBI & Exchange Rules for KYC . These people are paid commission out of the Account opening fees collected by Brokers. This has led to many unethical practices. Investors are lured to invest hard earned moneys which are often mis-used by Brokers.
It is observed that MCA's contain many clauses which are not approved by SEBI.
Some of the unethical practices are:
1. While filling in A/c opening form , the box for Cash Segment and Derivatives segment are intentionally kept unticked. .These are ticked by Brokers after obtaining Investors signature
2. The risk assessment / risk profile is also kept blank
3. Power of Attorney is OPTIONAL but Brokers obtain signatures without the knowledge of Investor.
It is observed that MCA's contain many clauses which are not approved by SEBI.
Some of the unethical practices are:
1. While filling in A/c opening form , the box for Cash Segment and Derivatives segment are intentionally kept unticked. .These are ticked by Brokers after obtaining Investors signature
2. The risk assessment / risk profile is also kept blank
3. Power of Attorney is OPTIONAL but Brokers obtain signatures without the knowledge of Investor.
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