SEBI’s New Reform on Broker and Investor Funds – Insights by Ashish Joshi Landmark Capital Advisors

Landmark Capital Advisors
Landmark Capital Advisors
April 24, 2026 · 4 min read
SEBI’s New Reform on Broker and Investor Funds – Insights by Ashish Joshi Landmark Capital Advisors

If you’ve been following the Indian stock market lately, you’ve probably noticed how quickly things are changing. Crossing 110 million Demat accounts isn’t just a number—it shows how many new investors are entering the space.

For brokerage firms, this has been a good phase. More accounts usually mean more trades, and more trades often mean better revenue. A big chunk of that also came from interest earned on idle investor funds.

But now, that part of the system is being questioned.

As pointed out by Ashish Joshi Landmark Capital Advisors, SEBI’s upcoming reform isn’t just another rule—it’s more like a reset. Not surprisingly, this topic keeps coming up in Landmark Capital Advisors News discussions.

What’s Changing? A Simpler Way to Look at It

At a basic level, SEBI wants to make sure brokers don’t hold investor money anymore.

Instead, your money stays with you—in your own bank account.

That means:

  • No more transferring funds to brokers
  • Money only gets blocked when you actually place a trade
  • Brokers just execute trades—they don’t control funds

If this reminds you of IPO applications, you’re not wrong. It’s quite similar to the ASBA system.

People at Landmark Capital Advisors Private Limited believe this shift was expected. Maybe not this soon, but definitely at some point.

What It Feels Like When You Actually Trade

Let’s make this practical.

Say you want to buy shares worth ₹1 lakh.

Earlier, you would transfer that money to your broker. Now? Your bank just blocks that amount. That’s it.

A few things to keep in mind:

  • Blocking can go up to ₹5 lakh per trade
  • You can still place multiple trades in a day
  • Only the exact amount used gets deducted

So even if ₹2 lakh is blocked and your trade uses ₹1 lakh, only ₹1 lakh goes out.

It’s a small shift in process—but psychologically, it gives more control back to the investor.

Why Investors Might Actually Like This

From what Ashish Joshi Landmark Capital Advisors explains, this change solves more problems than it creates.

For one, security improves. If brokers don’t touch your funds, the chances of misuse drop.

Then there’s control—your money stays where it should, in your account.

Also, something people often ignore: interest earnings. Earlier, brokers benefited from idle funds. Now, that benefit stays with you.

And maybe most importantly, fewer grey areas could mean fewer disputes.

No surprise this angle keeps showing up in Landmark Capital Advisors News.

But Brokers Aren’t Exactly Celebrating

While this looks great for investors, brokers have mixed feelings.

Some concerns being discussed:

  • Large trades might feel restricted due to blocking limits
  • Interest income disappears, which affects revenue
  • Systems and operations will need upgrades

The Landmark Capital Advisors Owner has also hinted that this could eventually impact how brokerage fees are structured.

So yes, change is coming—but not without friction.

A Bigger Shift Than It Looks

Earlier, brokers holding client funds was just… normal. It was part of how the system worked.

Now, with tighter rules and faster fund returns, things are becoming more transparent.

According to Landmark Capital Advisors, this might push the industry toward cleaner, more client-first practices. Not overnight, but gradually.

Why SEBI Is Doing This Now

The intention is pretty clear—reduce risk.

There have been cases in the past where broker defaults created problems for investors. SEBI seems to be closing that gap completely.

By bringing an ASBA-like system into regular trading, they’re trying to make sure investor money stays protected at all times.

It’s less about control and more about trust.

Final Thoughts: Not Perfect, But Necessary

No reform comes without challenges. Brokers will need time to adjust, and there might be some initial confusion too.

But from an investor’s point of view, this feels like a step in the right direction.

Ashish Joshi Landmark Capital Advisors sees it as a long-term positive move, even if the short-term impact feels uncomfortable. And if you’ve been following Landmark Capital Advisors News, that stance has been pretty consistent.

Closing Note

Markets evolve. Rules change. What really matters is how quickly people adapt.

That’s where firms like Landmark Capital Advisors Private Limited come in—helping investors understand what’s actually happening, beyond just the headlines.

Insights from the Landmark Capital Advisors Owner also point to something simple: staying informed is no longer optional—it’s necessary.

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