| Use of Client collateral by Broker |
This is with reference to SEBI circular no. MRD/DOP/SE/Cir-11/2018 dated April 17, 2008 and the exchange notice no. 20080421-32 dated April 21, 2008 and circular no. CIR/MRD/DP/54/2017 dated June 13, 2017 and the exchange notice no. 20170615-23 dated June 15, 2017, which inter-alia, provide that client collateral/securities shall not be used for purposes other than meeting clients margin requirements/pay-in or as may be stipulated in “Rights & Obligation Document”.
Further, the aforesaid SEBI circular dated June 13, 2017 and Circular no. CIR/MRD/DP/86/2017 dated August 01, 2017 and the exchange notice no. 20170803-5 dated August 02, 2017, contain provision regarding source of funds for the purpose of margin trading facility by the stock broker.
In view of the above, it reiterated that strict compliance with the provisions relating to use of client collateral is ensured by the stock broker.
For and On behalf of BSE Ltd.
Gopalkrishnan Iyer
Chief Gen. Manager
(Member Compliance, Investor Services and Broker Supervision) |