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
Unquote :
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