Pre- funded instruments / Electronic fund transfers

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..... ing the mode of receipt and payment of funds, has permitted the stock brokers to accept Demand Drafts from their clients. 2. While receiving funds from the clients through pre-funded instruments, such as, Pay Order, Demand Draft, Banker s cheque, etc., it is observed that the stock brokers are unable to maintain an audit trail of the funds so received, as the details of the name of the client a .....

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..... i. Certificate from the issuing bank on its letterhead or on a plain paper with the seal of the issuing bank. ii. Certified copy of the requisition slip (portion which is retained by the bank) to issue the instrument. iii. Certified copy of the passbook/bank statement for the account debited to issue the instrument. iv. Authentication of the bank account-number debited and name of the .....

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..... rred 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 and shall come into effect from the date of this Circular. 6. This circular is available on SEBI website at www.sebi.gov.in under the categories Legal Framework and Circulars . Yours .....

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