Surat: On Saturday, October 21, 2024, the Southern Gujarat Chamber of Commerce and Industry (SGCCI) held a session on compliance with SEBI regulations at Seminar Hall-A, Sarsana, Surat. The session featured notable speakers such as Saurabh Shah, Founder of SKS Compliance Advisors, Chartered Accountant Birju Morkhia, and Consultant Devesh Shah. They provided detailed information on the recent changes in SEBI regulations to stockbrokers and authorized persons (AP).
In his welcome speech, Chamber of Commerce President Vijay Mevawala highlighted SEBI’s critical role in ensuring the security, transparency, and protection of investors in India’s financial markets. He emphasized that SEBI’s regulations are not only essential for business but also vital for maintaining the credibility of the entire market. While technological advancements in trading have led to new challenges such as cyber security and data privacy, SEBI continues to evolve, ensuring compliance with data security, sustainability, and environmental social governance (ESG) standards in the financial markets.
Devesh Shah explained how investors can dematerialize physical shares, covering different types of securities like equity, NCDs, party paid-up shares, PCDs, bonds, and mutual fund certificates. He discussed common challenges in the dematerialization process, such as joint accounts, single-name issues, multiple certificates under different names, and the death of a joint holder.
Birju Morkhia discussed the tax implications of selling listed stocks, equity, and mutual funds (MFs/ETFs) before and after 12 months, following the July 23, 2024 budget. Short-term sales (within 12 months) are taxed at 20%, while long-term sales (after 12 months) are taxed at 12.5%. He also elaborated on the tax benefits of long-term sovereign gold investments. Morkhia provided detailed information on Section 54-F of the Income Tax Act and clarified that under the new regime, Section 87-A does not allow the Rs. 25,000 exemption for short-term and long-term capital gains.
Saurabh Shah advised investors to follow SEBI’s regulations for their benefit, stressing that SEBI’s primary goal is to protect investors from losses. He suggested that authorized persons (AP) should maintain pre-order confirmations or voice recordings to safeguard themselves in case of disputes. Shah further explained that APs should never handle investor funds in their personal accounts and can work from home if they possess a stockbroker certification. Additionally, APs must seek approval from stockbrokers and SEBI before any advertising and avoid any illegal activities.
Former Chamber of Commerce President Ramesh Vaghasiya, authorized persons, investors, and stockbrokers attended the session. Group Chairman Kamlesh Gajera outlined the event and expressed gratitude to the attendees. Bharat Dhameliya, a member of the Chamber’s Capital and Commodity Market Committee, hosted the event and introduced the speakers. The session concluded with satisfactory answers to all the questions raised by the attendees.
