9911796707
TMI BlogDealings between a client and a stock broker (trading members included)X X X X Extracts X X X X X X X X Extracts X X X X ..... he Member Clients Agreements, and (c) No. MRD/DoP/SE/Cir-20/2005 dated September 8, 2005 specifying the conditions for issuing electronic contract notes. 2. With a view to instill greater transparency and discipline in the dealings between the clients and the stock brokers, it has been decided, in consultation with Investor Associations, Secondary Market Advisory Committee of SEBI (SMAC), market participants and major stock exchanges, that the stock brokers shall comply with the requirements as annexed to this circular. 3. The stock brokers shall take necessary steps to implement this circular immediately and ensure its full compliance in respect of all clients existing or new at the latest by 31st March 2010. 4. The Stock Exch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The mandatory documents are: a. Member Client Agreement (MCA)/Tripartite Agreement in case sub-broker is associated, b. Know Your Client (KYC) Form c. Risk Disclosure Document (RDD) These shall be executed in the format as prescribed by SEBI. 4. The Client shall indicate the stock exchange as well as the market segment where he intends his trades to be executed. He shall do so in the KYC form in his own hand and sign against these. 5. The KYC form shall capture the identity and the address of the introducer instead of his MAPIN/UID. The KYC form shall be modified to this extent. 6. The stock broker shall have documentary evidence of financial details provided by the clients who opt to deal in the derivative segment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses in the mandatory documents, as also the Rules, Regulations, Articles, Byelaws, circulars, directives and guidelines of SEBI and Exchanges. Any such contravening clause shall be null and void. 11. Any authorization sought in non-mandatory part shall be a separate document and shall have specific consent of the client. Running Account Authorization 12. Unless otherwise specifically agreed to by a Client, the settlement of funds/securities shall be done within 24 hours of the payout. However, a client may specifically authorize the stock broker to maintain a running account subject to the following conditions: a. The authorization shall be renewed at least once a year and shall be dated. b. The authorization shall be signe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rals/margin in the form of bank guarantee (BG)/Fixed Deposit receipts (FDR). h. The stock broker shall transfer the funds / securities lying in the credit of the client within one working day of the request if the same are lying with him and within three working days from the request if the same are lying with the Clearing Member/Clearing Corporation. i. There shall be no inter-client adjustments for the purpose of settlement of the running account . j. These conditions shall not apply to institutional clients settling trades through custodians. The existing practice may continue for them. Authorization for Electronic Contract Notes 13. The stock broker may issue electronic contract notes (ECN) if specifically authorized b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
