SEBI asks brokers to get investors' income proof


SEBI asks brokers to get investors' income proof
Bangalore: SEBI has asked brokers to enlist the income details like tax returns, salary slips and investor's bank account statements for every year due to inadequate preventions of the flow of black money into stocks. SEBI wants to restrict the traders and investors not coming up with sufficient proof regarding the source of their funding and has instructed the brokers to follow this as a rule, reports Hina Deshpande from TopNews.in. Brokers and clients have to now get documentary evidence for financial information which would include copies of Income Tax Return (ITR) acknowledgement, annual accounts, Form 16 for salary income, net worth certificate, salary slips, bank account statements for six months, demat account holding statements and asset ownership certificates. This step is to be taken seriously to check the inflow of illegal money to the stock market. Since brokers are taking a lot of time to implement this rule which was suggested in December last year, SEBI is taking strict measures to ensure that these steps are implemented.