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Can a Broker hold his personal shares in his Clearing Member Pool Account?

April 26, 2017account broker clearing hold pool Shares

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Can a Broker hold his personal shares in his Clearing Member Pool Account?

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No. The CMPA is to be used only for clearing purposes, as this is a temporary and in transition Account.Securities in this account are not eligible for corporate actions, Bonus, Dividends, Rights etc.Thus, the Broker must open a separate account for his own investments. Top How do I operate my Account? In the operation of your account, your DP can act on your written instructions only. Make sure always that pre-signed instructions are not given by you to anyone. This is like a pre-signed and blank cheque.