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.
Quote:
-
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:
1.
Trading Members having
significant selling concentration of clients in the SMS Stocks shall withhold
the sale proceeds of the clients and transfer the same to the designated Bank
Account earmarked for this purpose.
2.
Trading members shall
ensure that the clients as identified in point no 1, do not transact further in
the SMS Stocks.
3.
Proceeds of SMS stocks
shall be transferred to designated bank account, irrespective of whether the
client continues to trade with the said Trading Member or not.
4.
In the event where the
client has closed his trading account, the Trading member shall make all
efforts to bring the funds back from clients else Trading member shall transfer
his own funds to the extent of deficit to the designated bank account.
5.
Designated Account:
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
6.
Transfer of proceeds of
SMS stocks to designated bank account shall be completed by May 28, 2018.
7.
The aforementioned action
shall also be made applicable to all SMS Stocks which may be published by the
Stock Exchanges on its website from time to time.
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
Unquote: -
Trading
Members are requested to take note of the aforesaid Notice of BSE and act
accordingly.
Amit Santra
Manager Surveillance