01.12.04
The
following are the common violations observed during inspection of the books of
the members of the Exchange. This is to advise the members of the Exchange not to indulge in
violations of the nature noted below. Members are also informed that repetition
of similar offences may call for severe action :-
|
Sl. no |
Type of violation |
|
1.
|
Fund transactions with brokers
of CSE |
|
2.
|
Off market trades not reported
:- i.
in listed shares ii.
in unlisted shares/ NSE/ BSE
shares |
|
3.
|
Acting as unregistered sub broker
for clients for NSE/BSE trades |
|
4.
|
Order book/ order
confirmation/cancellation slips not maintained |
|
5.
|
Relating to contract notes :- i.
Non issue of contract notes ii.
Issuance of contract notes not
in prescribed format iii.
Issuance of contract notes
without signature of authorized signatory iv.
Contract notes issued with
delays |
|
6.
|
Relating to ‘Know Your Client’
documents :- i.
Client registration forms not
executed ii.
Client registration forms
incomplete iii.
Client-broker agreement not
executed |
|
7.
|
No client bank account, non
segregation of funds, Client funds used for own purpose |
|
8.
|
Delay in payment to clients |
|
9.
|
Delay in delivery of
securities to clients |
|
10.
|
Non collection of margins from
clients |
|
11.
|
Non maintenance of CSE reports |
|
12.
|
Bank reconciliation statement
not maintained |
|
13.
|
Excess brokerage charged |
|
14.
|
Misuse of client securities |
|
15.
|
Books not properly maintained |
|
16.
|
Non submission of information
in prescribed format |
|
17.
|
Not entering correct/ unique
client code |
|
18.
|
Issuance of CSE contract notes
for fictitious transactions |
|
19.
|
Member acting through or on
behalf of another for trading on CSE without prior approval |
|
20.
|
Dealing with unregistered sub
brokers |
|
21.
|
Shareholding pattern not
verifiable |
|
22.
|
Change in Shareholding pattern
without CSE approval and also where dominant group holding falling below 51% |
|
23.
|
Change in profit sharing ratio
without CSE approval |
|
24.
|
Non appointment of at least 1
whole time director and min 2 experienced directors in case of corporate
brokers |
|
25.
|
Not submitting audit report /
late submission of audit report |
Secretary