Sayandeep Chakraborty, KIIT School of Law
ABSTRACT
This paper delves into two circulars issued by the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE) on the 12th of January and 8th of April 2024 respectively, allowing investors and clients to voluntarily block or freeze their trading accounts through trading members. At the very outset, the paper explores the necessity of such step in light of the rapid growth of online trading in India, and then goes on to discuss the status of implementation of the provisions of the Circular so far.
By examining the relevant provisions of the circular and the proposed framework and key concepts in details, the paper sheds light on the intricacies of this regulatory development. Furthermore, it conducts
comparisons with existing laws governing the freezing of Demat accounts and other financial instruments like Credit cards. The analysis culminates in an exploration of the prospective positive impacts of the circular on investors, clients, and the overall Indian stock market landscape. Through comprehensive examination, the paper discusses the grey areas in the Circular, thus contributing to a deeper understanding of regulatory measures aimed at enhancing investor protection and fostering a conducive trading environment.
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