18th November,2016

N O T I C E

 

 

Sub: Schemes/Leagues/Competitions launched by registered Stock Brokers

 

 

The Exchange has received a letter No.MIRSD-2/OW/30571/2016 dated November 07,2016 enclosing a copy of letter No.MIRSD-2/DB/SKS/34292/2015 dated December 11, 2015.  The contents of the said letter are reproduced below for information and implementation by registered stock brokers:

 

Quote

 

SEBI vide letter MIRSD-2/DB/SKS/34292/2015 dated December 11, 2015 (copy enclosed) addressed to BSE and NSE, issued certain guidelines regarding the captioned subject.  In partial modification to the guidelines communicated vide the aforesaid letter, Stock Exchanges are advised to ensure strict compliance with the following requirements :

 

a)       Stock Broker or its associates/group company cannot directly indirectly, sponsor or be associated with any schemes/leagues/competition, etc. which may involve distribution of monies/prizes/gifts/medals, etc.

b)      No reference to Stock Broker’s name, logo etc. can be made in any schemes/leagues/competition, etc.

c)       Stock Broker cannot share any information of their clients with a third party, even with the clients’ consent, in case any third party is involved in launching schemes/leagues/competition, etc.

d)      Stock Broker cannot take any financial liability, including any contingent financial liability, on account of any schemes/leagues/competition, etc. launched by a third party.

 

Further, SEBI had also held discussions with Stock Exchanges and Broker associations regarding Code of Advertisement for Stock Brokers.  Pursuant to the aforesaid discussions, revised Code of Advertisement for Stock Brokers is enclosed as Annexure – A.

 

The Stock Exchanges are advised to ensure strict compliance with the aforesaid Code of Advertisement.  Stock Exchanges may, if so desire, stipulate additional requirements so long as they are not in contravention to the aforesaid code of advertisement.

 

Stock exchanges are advised to bring the above requirements to the notice of their members and also disseminate the same on their website.

 

Yours faithfully,

 

 Debashis Bandyopadhyay

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Members are requested to take note of the above letter and both the SEBI letter dated 7.11.2016 & 11.12.2015 available at CSEs website at cse-india.com.

 

 

MAV Raju

 General Manager