This is with reference to SEBI Circular No. SEBI/MRD/SE/Cir-33/2003/27/08 dated August 27, 2003 and Exchange Notice No. 20030903-05 dated September 03, 2003 regarding Mode of Payment and Delivery.
Further to the above SEBI has issued a circular No. SEBI/HO/MIRSD/DOP/CIR/P/2018/113 dated July 12, 2018 (Copy enclosed herewith as Annexure) on Discontinuation of acceptance of cash by Stock Brokers. Accordingly, paragraph 3 of SEBI circular dated August 27, 2003 is modified as under:
All payments shall be received /made by the stock brokers from/to the clients strictly by account payee crossed cheques/demand drafts or by way of direct credit into the bank account through electronic fund transfer, or any other mode permitted by the Reserve Bank of India. The stock brokers shall accept cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. Stock Brokers shall not accept cash from their clients either directly or by way of cash deposit to the bank account of stock broker.
All other conditions specified in the SEBI circular dated August 27, 2003 shall continue to remain in force.
Stock Brokers are advised to take note of the same.
For and On behalf of BSE Ltd.
Gopalkrishnan Iyer Hitasha Gurbani
Chief General Manager Asst. Gen. Manager
(Brokers’ Supervision) (Brokers’ Supervision)