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TMI BlogSecurities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2024.X X X X Extracts X X X X X X X X Extracts X X X X ..... ess the context otherwise requires (a) Designated Director shall have the same meaning as assigned to it under the Prevention of Money-laundering (Maintenance of Records Rules), 2005; (b) fraud shall have the same meaning as assigned to it under the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003; (c) employees shall include key managerial personnel, senior management, Designated Directors, other employees and analogous or equivalent persons of the stock broker; (d) Key managerial personnel shall have the same meaning as assigned to it under sub-section (51) of section 2 of the Companies Act, 2013; (e) market abuse includes a manipulative, fraudulent and unfair trade practice including through a mule account which may contravene any of the provisions of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 or the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 or Section 12A of the Act; (f) mule account shall have the same meaning as assigned to it under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various scenarios shall be set at a reasonable level and be documented along with clear rationale for the same. (6) The Board of Directors or persons of other equivalent or analogous rank of the stock broker shall review and update the systems, processes, and control procedures on a periodic basis and in any case not less than once in a calendar year, to keep pace with the developments in the securities market and regulatory changes, including the progressive adoption of automated know your client procedures and the order and trade surveillance systems to enhance the monitoring of trading activities. (7) The stock broker shall have adequate systems in place to ensure that its proprietary accounts are used only for the purpose of carrying out proprietary trades and that its operations are in accordance with the requirements as may be specified by the Board or the stock exchanges from time to time. (8) The stock broker shall ensure that its trading terminals are used only by its employees and/or Authorised Persons and only at locations approved by the stock exchanges and that such terminals shall not be used by its clients in any form or manner. (9) The stock broker shall establish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r governance vulnerability. (2) The policy should establish procedures to ensure adequate protection of the whistle blowers. (3) The complaints under this regulation against the Board of Directors including those against the Managing Director, Chief Executive Officer, key managerial personnel, Designated Directors or Promoter shall be addressed to the Audit Committee or other analogous body of the stock broker and the complaints against other employees shall be addressed to the Compliance Officer. BABITHA RAYUDU, EXECUTIVE DIRECTOR [ADVT.-III/4/Exty./219/2024-25] Footnotes: 1. Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 , the Principal Regulations, was published in the Gazette of India on October 23, 1992 vide S.O. No. 780 (E). 2. The Principal Regulations were subsequently amended on: a) November 28, 1995 by the SEBI (Payment of Fees) (Amendment) Regulations, 1995 vide S.O. No. 939 (E). b) January 5, 1998 by SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 1998 vide S.O. No. 13 (E). c) January 21, 1998 by SEBI (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations, 1998 vide S.O. No. 75 (E). d) December 16, 1998 by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2009 vide Notification No. LADNRO/GN/2009-10/21/183853. w) April 13, 2010 by the Securities and Exchange Board of India (Stock Brokers and Sub Brokers) (Amendment) Regulations, 2010 vide Notification No. LADNRO/GN/2010-11/06/1097. x) April 6, 2011 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2011 vide Notification No. F. No. LAD NRO/ GN/ 2011 12/01/11486. y) April 19, 2011 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment)Regulations, 2011 vide Notification No. LAD/NRO/GN/2011-12/03/12650. z) August 17, 2011 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations, 2011 vide Notification No. LAD-NRO/GN/2011-12/19/26273. aa) April 5, 2013 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2013 vide Notification No. LAD-NRO/GN/2013-14/01/8129. bb) September 27, 2013 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Second Amendment) Regulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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