Page 30 - Banking Finance December 2019

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provide support to SMEs in such crisis situation. The 7. RBI organises National Mission for Capacity Building of
regulatory body, from time to time have advised banks Bankers for Financing MSME sector (NAMCABS) for
to sanction loans with a top up facility so that SMEs building capacity of bankers.
can avail such facility in case of emergency. 8. CGTMSE scheme to promote collateral free lending to
MSMEs
8. Be a Facilitator : The role bank should not be confined
9. BCSBI - monitoring approach of banks towards MSMEs
only to "lender" but it must extend upto a facilitator.
Bank must from time to time monitor the SME
borrower and advise corrective actions whenever With the changing landscape in the MSME sector like
increasing formalisation (registration in Udhyog Aadhar, GST
required.
registration etc), increase use of smart phones has led to
increase in digital transactions and access to information
Some initiatives in India for growth of across economy. It is need of the hour for banks to review
MSME sector: their SME lending mechanism. Banks should work on
1. Mandatory 25% procurement from MSMEs by CPSEs innovative lending approach and try to provide better
customer experience to the "growth engine" of the
2. PSB59 minutes loan
economy by leveraging recent initiatives.
3. Focus on cluster development and cluster based lending
approach "A big business always starts small" and banks have got
important role in it.
4. TReDS - for better receivables management of MSMEs
5. Launch of Pradhan Mantri Mudra Yojana and Start up Reference:
India, stand up India scheme 1. MSME pulse December 2018
6. Promoting "Make in India" 2. Reports on Credit disruption by Omidyar Network & BCG

Safeguard your trading account from a Karvy-like incident

Recently, capital markets regulator Securities and Exchange Board of India raised several concerns against Karvy Stock
Broking Ltd (KSBL). Sebi has categorically specified that the securities lying with brokers for non-receipt of payment
from clients cannot be used by the broker as collateral margin for any of the proprietary trades and cannot be pledged
with financial institutions. The regulation hit brokers, especially those who did not have enough funds to revoke pledges.
But as a client, what can you do to safeguard against such incidents? Here’s a checklist.
Verify your client master list details
The client master list (CML) that is given at the time of account opening should be checked thoroughly for all the details
mentioned, especially the mobile number and email ID. This is very important, as the depository sends SMS alerts for any
debit transaction in the client’s depository account. Also, in case you haven’t used your account for a long time, you
should request the depository to freeze the account. This does not impact any corporate action such as those related to
dividends, bonus or splits, in the client’s portfolio. Whenever you want to trade again, you can unfreeze the account.
Check margin statements regularly
You should regularly check your margin statements, which define the cash or collateral margin that is available with
the broker. The broker is liable to share the details of securities or cash margin available for the client, as per the
regulations, for all open positions (till the position is settled at an exchange level).
Check demat statements
You get a demat statement at least once a year, as defined under the regulations. It’s very important to check it when
a power of attorney (PoA) is given. Further, brokers need to provide the quarterly settlement (not exceeding 90 days)
of funds and securities, as per the regulations. You can check your unutilized funds and securities. (Source: Livemint)

30 | 2019 | DECEMBER | BANKING FINANCE