Date: 21st July 2011
N O T I
C E
Re: FINE FOR MAINTAINING
INADEQUATE BALANCE IN HDFC BANK SETTLEMENT ACCOUNT FOR FUNDS PAYIN OBLIGATIONS
OF BSE-CSE ARRANGEMENT
Trading Members of the Exchange participating
in trading in BSE-CSE arrangement are aware that normally funds pay-in in
respect of BSE transactions in carried out by the Exchange through HDFC bank on
T+1 day basis and shortfalls if any are debited from the members settlement
account on T+2 day by 9.00 A.M.
It is observed that some trading
members are not making arrangements for their pay-in obligations for BSE
segment well in time which is creating problem for CSE as a whole to meet the
pay in obligation to BSE. Vide exchange notice dated 20th April
2010, members were requested to make funds available in their settlement
account latest by 9.30 AM. We would request members to continue to adhere to
the same deadline for their pay in dues.
However based on SEBI’s observation
during their last inspection the exchange has decided to take the following
steps in case of a default by a member with regard to its pay in dues by 10.30
A.M. on T+2 day:
1. The Exchange has revised the penal
structure for default by a member with regard to its pay in dues by 10.30 A.M.
on T+2 day as per the details given in the table below:
Number of
default |
Minimum
Amount |
Up to 5
times (Within the Financial
Year) |
Rs. 500/- for each instance or 0.25% which is
higher |
5 to 10
times (Within the Financial Year) |
Rs. 1,000/-
for each instance or 0.25% which is higher |
More than
10 times (Within the Financial Year) |
Rs. 5,000/-
for each instance or 0.25% which is higher |
2. Above mentioned penal structure
will come into effect from 25th July 2011.
3. For each day of delay a penal
interest of 0.07% per day has to be paid by the defaulting member till the date
of realization of the amount.
4. In case of non payment of pay in dues,
along with penalty the member’s terminal will be switched off immediately after
10.30 A.M. and reactivated only after receipt of the pay in dues. The matter
will also be placed before the DAC Committee and any further recommendation by
the DAC Committee will be communicated to the member for implementation.
GM- Stock Exchange Operation