This has reference to SEBI Circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016, and Exchange Notice 20160927-41 dated September 27, 2016, on “Enhanced Supervision of Stock Brokers/Depository Participants”
As per clause 2.4.2 of aforesaid SEBI circular, “Transfer of funds between "Name of Stock Broker - Client Account" and "Name of Stock Broker - Settlement Account" and client's own bank accounts is permitted. Transfer of funds from "Name of Stock Broker - Client Account" to "Name of Stock Broker - Proprietary Account" is permitted only for legitimate purposes, such as, recovery of brokerage, statutory dues, funds shortfall of debit balance clients which has been met by the stock broker, etc. For such transfer of funds, stock broker shall maintain daily reconciliation statement clearly indicating the amount of funds transferred.”
However, It has been observed that, the Trading Members are not able to promptly furnish daily reconciliation statement indicating the purpose of such transfers, when the same is sought by the Exchange during inspections or offsite supervision. In view of this, it is reiterated that the members shall maintain the reconciliation statement on a daily basis as prescribed in the aforesaid circular and provide the same as and when sought by the relevant authority.
Members are advised to take note of the contents of the circular and ensure strict compliance.
In case of any clarifications, members may contact us on details given as under:
For and on behalf of BSE Ltd.
Sandeep Sharma Richa Ghosh
Asst. Gen. Manager Asst. Gen. Manager
Brokers’ Supervision Brokers’ Supervision
|