Be careful with these two people in Stock Market, NSE warned. | SEBI gives big relief to investors.

Be careful with these two people in Stock Market:

If you invest in the stock market and live in the circle of guaranteed returns, then this news is for you. The country's largest exchange National Stock Exchange i.e. NSE has warned investors. That is, in a way a warning has been given. Now let's try to understand the whole news. NSE has issued a warning notice to investors to stay away from dabba trading on the exchanges.

 

Now let us first know what is Dabba trading. The Dabba system trading is also called box trading in India. It is also called bucket trading in America.  Brokers advise investors to invest outside the stock market in dabba trading. In this trade, orders are executed through operators, and all transactions are settled in cash every week.

 

The operator enters the trade in its records after receiving the orders from the clients. Now it is very important to know what is the risk in this type of trading. Dabba trading is completely illegal. In this, a PAN card or Aadhaar card is not taken from any investor. All the shares that are bought in dabba trading do not go into anyone's demat account but go into the ledger of the dabba trader.

 

Let me tell you, the box trader himself decides all the rules. If they want, they can give money or not. If you make a loss in a trade, they immediately start demanding money. Usually, this trader disappears overnight or does not even return the money. In such a situation, the names of two people have also been told from whom you need to be careful. 

Who are those two people and what are their names? NSE in its investigation found that two people have been promoting Dabba trading for a long time. Their names are Narendra V Sumaria and Nitin Shantilal Nagda. NSE has advised investors not to subscribe to Dabba trading offered by any person in the stock market as it has been declared illegal by law. 

Now after knowing all these things, what will happen to you if you do dabba trading? Dabba trading system comes under the limit of Section 406, 420, and Section 120B of the Indian Penal Code 1870 apart from violating the securities laws. NSE has warned not to vote on such illegal trading platforms; as such illegal trading platforms are neither approved nor supported by NSE. 

Let us tell you, it was also said by NSE that if investors invest in Dabba trading, then these facilities will not be available for them. The benefits of investor protection under the jurisdiction of the first exchange's jurisdiction, second exchange dispute resolution mechanism, and third exchange investor grievance Redressal mechanism administered by the exchange.

So if you also want to avoid all the hassles and earn profit in the stock market, then you must follow this rule and warning.

 

SEBI gives big relief to investors:

If you trade in the stock market then this news is for you. SEBI has changed the rules related to Alternative Investment Funds ie AIFS or there are such funds that are willing to invest more than ₹ 1 crore at a time, satisfies the needs of rich people. What is the full news? Let us understand in detail.

 

The Securities and Exchange Board of India i.e. SEBI has asked Alternative Investment Funds to provide direct plan options to their investors. Now know what will happen from this. In this way, the investors will be able to invest in AIFs without any distribution fee or placement fee. Now first what is Alternative Investment Fund i.e. AIFS?

 

Alternate Investment Fund or AIFs is a fund created in India or a private investment fund. In this, investment is taken from a few selected people, and investment is done according to the investment policy. At least ₹ 1 crore is invested in AIFS. Large investors use it for the diversification of funds or a privately pooled investment.

 

The money raised from the investors is invested for the benefit of the investors in these schemes. Now understand how many types it is. Applicants can get their registration done for AIF for different categories. Under this, applicants can register for different categories and sub-categories. AIF is three types.

 

It is One AIF Category, Two AIF, and Category Three AIF. It is also important to understand what are the existing rules now. Currently, investors invest in AIFs through an investment advisor. Portfolio managers are charged twice the fees of the investors. One in the form of an advisory or portfolio manager's management fee to the investment advisor and the other in the form of an AIF distribution fee.

 

But also know what has to be done after SEBI's rule. The Alternative Investment Policy Advisory Committee met to resolve the issue of double charges on investors investing in AIFs. It was proposed before this meeting to make it mandatory for AIFs to offer the option of direct plans to investors.

 

Explain that AIFs have been mandated to the option of direct plans to investors, which do not involve any distribution and placement charges. That is, freedom from double charges has been achieved. Let us tell you that SEBI has said that compliance with these provisions will be strictly implemented from May 1, 2023. 

Overall, SEBI has given a big relief to investors. Now your investment will not be hit by double fees. We hope you like the information. If you have any questions in your mind, please comment on our site www.tradeipohub.co.in.