9911796707
TMI BlogCode of Conduct for Stock BrokersX X X X Extracts X X X X X X X X Extracts X X X X ..... (5) Compliance with statutory requirements: A stock-broker shall abide by all the provisions of the Act and the rules, regulations issued by the Government, the Board and the Stock Exchange from time to time as may be applicable to him. B. Duty to the Investor (1) Execution of Orders: A stock-broker, in his dealings with the clients and the general investing public, shall faithfully execute the orders for buying and selling of securities at the best available market price and not refuse to deal with a Small Investor merely on the ground of the volume of business involved. A stock-broker shall promptly inform his client about the execution or non-execution of an order, and make prompt payment in respect of securities sold and arrange for prompt delivery of securities purchased by clients. (2) Issue of Contract Note: A stock-broker shall issue without delay to his client 1 [or client of the sub-broker, as the case may be] a contract note for all transactions in the form specified by the stock exchange. (3) Breach of Trust: A stock-broker shall not disclose or discuss with any other person or make improper use of the details of personal investments and other information of a confiden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the said security, while rendering such advice.] (8) Competence of Stock-Broker: A stock-broker should have adequately trained staff and arrangements to render fair, prompt and competence services to his clients. C. Stock-Brokers vis-a-vis Other Stock-Brokers (1) Conduct of Dealings: A stock-broker shall co-operate with the other contracting party in comparing unmatched transactions. A stock-broker shall not knowingly and wilfully deliver documents which constitute bad delivery and shall co-operate with other contracting party for prompt replacement of documents which are declared as bad delivery. (2) Protection of Clients Interests: A stock-broker shall extend fullest co-operation to other stock-brokers in protecting the interests of his clients regarding their rights to dividends, bonus shares, right shares and any other right related to such securities. (3) Transactions with Stock-Brokers: A stock-broker shall carry out his transactions with other stock-brokers and shall comply with his obligations in completing the settlement of transactions with them. (4) Advertisement and Publicity: A stock-broker shall not advertise his business publicly unless permitted by the stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng or short position in the said security has been made, while rendering such advice. (b)In case, an employee of a Stock Broker is rendering such advice, the Stock Broker shall ensure that he shall disclose its interest, the interest of dependent family members and that of the employer including their long or short position in the said security, while rendering such advice. 10. A Stock Broker or any of its directors, partners or manager having the management of the whole or substantially the whole of affairs of the business, shall not either through its account or their respective accounts or through their associates or family members, relatives or friends indulge in any insider trading. 11. A Stock Broker acting as an underwriter shall not indulge in any unfair competition, which is likely to be harmful to the interest of other entities acting as underwriters carrying on the business of underwriting or likely to place such other underwriters in a dis-advantageous position in relation to the underwriter while competing for, or carrying out any assignment. 12. An underwriter shall not be party to or instrumental for- (a) creation of false market; (b) price rigging or manipulation; o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude and fairness in the conduct of all investment business. (2) Exercise of due Skill and Care: A sub-broker, shall act with due skill, care and diligence in the conduct of all investment business. B. Duty to the Investor (1) Execution of Orders: A sub-broker, in his dealings with the clients and the general investing public, shall faithfully execute the orders for buying and selling of securities at the best available market price. A sub-broker shall promptly inform his client about the execution or non-execution of an order 4 [***]. 5 [(2) A sub-broker shall render necessary assistance to his client in obtaining the contract note from the stock-broker.] (3) Breach of Trust : A sub-broker shall not disclose or discuss with any other person or make improper use of the details of personal investments and other information of a confidential nature of the client which he comes to know in his business relationship. (4) Business and Commission : (a) A sub-broker shall not encourage sales or purchases of securities with the sole object of generating brokerage or commission. (b) A sub-broker shall not furnish false or misleading quotations or give any other false or misleading advice or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tem. C. Sub-brokers vis-a-vis Stock Brokers (1) Conduct of Dealings : A sub-broker shall co-operate with his broker in comparing unmatched transactions. Sub-broker shall not knowingly and wilfully deliver documents which constitute bad delivery. A sub-broker shall co-operate with other contracting party for prompt replacement of documents which are declared as bad delivery. (2) Protection of Clients Interests: A sub-broker shall extend fullest co-operation to his stock-broker in protecting the interests of their clients regarding their rights to dividends, right or bonus shares, or any other rights relatable to such securities. (3) Transactions with Brokers: A sub-broker shall not fail to carry out his stockbroking transactions with his broker nor shall he fail to meet his business liabilities or show negligence in completing the settlement of transactions with them. (4) 8 [***] (5) Advertisement and Publicity : A stock-broker shall not advertise his business publicly unless permitted by the stock exchange. (6) Inducement of Clients: A stock-broker shall not resort to unfair means of inducing clients from other brokers. D. Sub-Brokers vis-a-vis Regulatory Authorities (1) General Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
