Dhruv has purchased 1000 shares @ ₹ 80 per share of a company. He wanted to pay ₹ 5,000 in cash and balance through bank transfer to stock broker. As a Company Secretary advise Dhruv by referring SEBI regulation/circular

SEBI vide its circular no. SEBI/HO/MIRSD/DOP/CIR/P/2018/113 dated 12/07/2018 has discontinued acceptance of cash by Stock Brokers. In view of the various modes of payments through electronic means available today, it is directed that Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker. All payments shall be received / made by the Stock Brokers from/to the clients strictly by account payee crossed cheques/ demand draft or by way of credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India. The stock brokers shall accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of Stock Broker.