Receive Daily Updates by Email (Free Subscription)

[SEBI] Modifications To Circular On Enhanced Supervision Of Stock Brokers & Depository Participants

SEBI, vide circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2017/123 dated November 29, 2017, has notified some modifications to Enhanced Supervision Circular. The contents of the said circular is as follows:

1. SEBI vide circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016, has issued guidelines covering broad areas for enhanced supervision based on the recommendation of the committee constituted by SEBI.

2. In this regard, following modifications are made :
a. Clause 7.1.2 stands modified as follows: “End of day securities balances ISIN wise (as on last trading day of the month) and End of day securities balances (as on last trading day of the month) consolidated ISIN wise (i.e., total number of ISINs and total number of securities across all ISINs)” 
b. Clause 7.1.3 stands modified as follows: “ISIN wise number of securities pledged, if any, and the funds raised from the pledging of such securities and consolidated number of securities pledged (i.e., total number of ISINs and total number of securities across all ISINs), if any and the funds raised from the pledging of such securities.” 
c. Clause 7.1.4 stands modified as “The data at Para 7.1.1, 7.1.2 and 7.1.3 pertains to the last trading day of the month. The stock broker shall submit the aforesaid data within seven calendar days of the last trading day of the month.” 
d. Clause 7.2 stands modified as below -
“Each Stock Exchange shall in turn forward –
a. Information at Para 7.1.1, 7.1.2 and 7.1.3 to clients via Email on the email IDs uploaded by the stock broker to the exchange for their clients.
b. Information at Para 7.1.1, 7.1.2 (only consolidated data) and 7.1.3 (only consolidated data) to clients via SMS on mobile numbers uploaded by the stock broker to the Exchange for their clients.”
3. The above provisions shall be applicable one month from the date of this circular.

4. You are advised to take necessary steps to ensure compliance with the above.

5. The Stock Exchanges are directed to
a. Bring the contents of this circular to the notice of the Stock Brokers and also disseminate the same on their website. 
b. Make necessary amendments to the relevant bye-laws, rules and regulations for this implementation of the above directions in co-ordination with one another to achieve uniformity in approach.
6. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

7. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework”.

No comments:

Post a Comment

Share your valuable opinion or your query here.