This is in continuation to Exchange notice no. 20180214-31 dated February 14, 2018 regarding Revised Penalty Structure and SEBI circular no. SEBI/HO/MIRSD/DOP/CIR/P/2018/113 dated July 12, 2018 and Exchange Notice No. 20180713-32 dated July 13, 2018 regarding Discontinuation of acceptance of cash by Stock Brokers.
Exchange is in receipt of letter from SEBI dated July 13, 2018 wherein SEBI had advised Exchange to “Revise the penalty norms for members for dealing in cash with their clients in accordance with the provision of the aforementioned SEBI circular, in a uniform manner.”
In this regard, Exchange has revised penalty structure regarding cash dealing by stock brokers which is given as follows:-
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Detail of Non-compliance
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Revised Penalty Norms
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Cash Dealing by Members
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10% of the amount of cash dealing or Rs. 1,000/- whichever is higher.
For repetitive instances, the penalty shall be escalated by 50%.
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The revised penalty norms shall be applicable for all inspections commenced after the date of this circular.
The members are advised to take note of the revised penalty norms and ensure adherence to the compliance requirements.
For and on behalf of BSE Ltd.
Gopalkrishnan Iyer
Chief. General Manager
(Brokers’ Supervision)
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