State Bank of India (SBI), the largest bank in the country, is encouraging its employees and their family members to use its own brokerage arm, SBI Securities, for their stock demat accounts. If any employee wants to open a demat account with another brokerage, they must get prior approval from a senior official, at least of the rank of chief general manager, within six months. This was communicated by SBI’s deputy managing director in a letter to all employees dated May 27.
SBI employs over 230,000 people across 22,500 branches nationwide. Additionally, the SBI group is the largest asset manager in India’s mutual fund industry, managing more assets than the ICICI Group or the HDFC Group.
The letter also instructs employees to submit quarterly statements of their own and their dependent family members’ demat or trading accounts to their respective supervisors for review.
The directive warns that failing to follow these instructions will be considered ‘gross misconduct’ for award staff.
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