To All Members,
1. Attention of Members’ is drawn to Exchange circular 20191018-43 dated October 18, 2019, which mandates Members to exercise adequate control and due diligence over the activities & transactions of their Authorised Persons (APs) and conduct their periodic inspection in the manner as specified therein.
2. In this regard, Exchange will provide an online system in BEFS for reporting of the inspections/supervision undertaken by the Members. The same can be accessed at https://befs.bseindia.com/login.aspx
The reporting shall be done in the following manner:
a) All inspections undertaken during a financial year including the quantum should comply with guidelines prescribed in Exchange circular 20191018-43 dated October 18, 2019.
b) Inspections undertaken during a particular quarter shall be reported within one month from end of the said quarter. For instances:
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Inspections undertaken during the FY
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Due date of reporting
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Inspections done during the Quarter-1
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July 31, XXXX
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Inspections done during the Quarter-2
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Oct 31, XXXX
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Inspections done during the Quarter-3
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Jan 31, XXXX
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Inspections done during the Quarter-4
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April 30, XXXX
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c) In case no inspection is undertaken during a particular quarter, Members will have to submit a “Nil” declaration for the said quarter. The “Nil” declaration will be carried forward to the next quarter and recorded unless the Member reports the inspection details in the next quarter.
d) In the first phase Members are required to report details of all inspections undertaken during FY 2020-21 and for quarter-1 & 2 of FY 2021-22 latest by November 30, 2021. Subsequently all inspections shall be reported in the matter stated in para 2 (b) above from quarter 3 FY 2021-22 onwards.
Members are also hereby notified that they shall be mandatorily required to report any incidence, observed by them, involving assured returns or any unauthorised schemes operated by the AP, to the Exchange, within 2 working days.
The reporting shall be made electronically through the link as provided in para 2 above i.e. https://befs.bseindia.com/login.aspx
Members, additionally, shall also take necessary measures, as mentioned in SEBI circular MIRSD/DR-1/Cir-16/09 dated November 06, 2009, including filing of police complaint, upon noticing such incidence.
3. Members should undertake necessary due diligence & background screening of the applicants at the time of their onboarding as an AP. Members should restrict entities with names which may mislead clients/investors, including names with “Portfolio/wealth management/advisory" without a valid SEBI registration. The Exchange shall reject any AP application, where it is of the opinion that the name of the applicant is misleading or does not reflect the activities permitted to be undertaken by an AP.
All Members are advised to take note of the same and ensure compliance.
For and on behalf of BSE Ltd
Hiteshkumar Desai Kiran Sawant
Additional General Manager Asst. General Manager
Brokers’ Supervision Brokers’ Supervision |