SEBI Eases Rules for Dormant Client Accounts Inactive for 30 Days, Imposes Rs 9 Lakh Penalty on Stockholding Services

The Securities and Exchange Board of India (SEBI) has announced a relaxation of rules for brokerages regarding the settlement of client accounts that have been inactive for 30 days. This change aims to streamline processes for dormant accounts, making it easier for brokerages to manage these accounts. Additionally, SEBI has mandated that companies preparing for initial public offerings (IPOs) disclose any whistleblower complaints. In a separate enforcement action, SEBI imposed a penalty of Rs 9 lakh on Stockholding Services for violations of regulatory norms. The new regulations also classify companies as defaulters for minor payment lapses, indicating a stricter approach to compliance.