N O T I C E
November 28, 2013
Trading members are hereby informed that the Exchange has received a communication from SEBI vide their letter Ref. No. MIRSD-2/OW/28238/2013, dated October 29, 2013 regarding Quarterly/monthly settlement of running accounts of clients. The contents of the same are given hereunder for intimation & comply of trading members.
MIRSD-2/OW/28238/2013 October 29, 2013
The Calcuttast Stock Exchange Association Ltd.
7 Lyons Range
KOLKATA- 700 001
This is in reference to SEBI circular dated December 03, 2009 and subsequent clarifications issued by stock exchanges vide circular dated February 03, 2010 (NSE & BSE) regarding Quarterly/monthly settlement of running accounts of clients.
In order to address the operational and administrative difficulties faced by stock brokers in settling the running accounts, in consultation with Stock Exchanges and Stock Broker Associations, it has been decided that stock exchanges may issue following further clarifications with respect to quarterly/monthly settlement of running accounts of clients.
I. For the purpose of settlement, the stock broker is allowed to settle across segments and across stock exchanges for particular client.
II. In respect of derivative market transactions, apart from the margin liability as on the date of settlement, the stock broker may retain additional margin requirement of maximum up to 125% of margin requirement on the day of settlement to take care of any margin obligation arising in next 5 days.
III. The actual settlement of funds and securities shall be done by the broker, at least once in a calendar quarter or month, depending on the preference of the client as per aforesaid SEBI circular. However, to address the administrative/operational difficulties in settling the accounts of regular trading clients (active clients), the stock broker may retain an amount of up to Rs. 10,000/- (net amount across segment and
across stock exchanges), only after taking consent of the client. However, such threshold limit on retention of amount shall not be applicable in case of clients who have not traded even once during the last one month/quarter, as the case may be, i.e. settlement shall be done as per the aforesaid SEBI circular, in such cases.
The stock exchane shall issue approprate clarification to market participants, in co-ordination with the other stock exchanes under intimation to us.
Market Intermediaries Regulation And Suervision Department – 2
Emal : firstname.lastname@example.org
Trading Members are requested to take note of the aforesaid communication of SEBI and act accordingly.