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 SEBIís 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 memberís 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.

 

 

 

 

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