N O T I C E
Dated : May 21, 2018
Trading Members are hereby informed that the Exchange has received a notice from BSE vide Notice No. 20180515-39, Dated 15/05/2018 regarding “withholding of sale proceeds of securities in which unsolicited messages being circulated”. The contents of the said Notice is reproduced hereunder for information of trading members.
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NOTICES
Notice No. 20180515-39 Notice Date: 15 May 2018
Category: Trading Segment: Equity
Sub: Withholding of sale proceeds of securities in which unsolicited messages being circulated
This is in continuation with the Exchange notice no. 20171117-18 dated November 17, 2017 cautioning the trading members on unsolicited messages being circulated by unregistered / unauthorized entities and advising trading members to carry out necessary due diligence before releasing the pay-out to their clients.
Further, trading members are aware that list of securities in which unsolicited messages being circulated (“SMS Stocks”) are published from time to time on trading terminals as well as on the home page of the Exchange website under head - Attention Investors, inter alia, cautioning the market participants against SMS tips and to do thorough analysis about the company before investing.
In this regard, during the recent meeting of SEBI with Stock Exchanges and select trading members, it was decided as under:
a) Trading member shall open designated bank account with any scheduled commercial bank for the aforementioned purpose.
b) Trading member shall submit a confirmation to the Exchanges after transferring the requisite funds to the designated account.
c) Trading member shall submit duly certified letter from designated bank confirming the Exchange wise balance on a monthly basis.
d) Trading member shall not be allowed to withdraw funds out of the designated account until further directions.
e) Trading members shall intimate all communications with respect to the above on investigation@bseindia.com
Trading members are advised to take note of the above and ensure compliance with aforementioned requirements.
Any non-compliance in the matter shall be viewed seriously and may attract further action which may inter alia include additional action such as referring trading members for special inspection, levy of additional margins, other disciplinary actions as deemed fit.
In case of any clarification, members may contact on 022 2272 8234 / 8852.
For & On behalf of BSE Ltd.
Usha Sharma Rajesh Gandhi
Addl. General Manager Asst. General Manager
Surveillance Surveillance
May 15, 2018
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Trading Members are requested to take note of the aforesaid Notice of BSE and act accordingly.
Amit Santra
Manager Surveillance