NATIONAL STOCK EXCHANGE OF INDIA LIMITED DEPARTMENT : COMPLIANCE Download Ref.No.: NSE/COMP/31391
Date : December 18, 2015
Circular Ref.No.: 236/2015
To All Members Sub : Schemes/Leagues/Competitions Launched by Registered Stock Brokers The Exchange has received a communication from SEBI advising the stock exchanges to ensure the following compliances with respect to its members (here-in-after referred as ‘stock broker’) whose clients avail the services under any schemes/ leagues/ competitions etc. offered by any third party/ group company/ associate of the stock broker:i) The stock broker shall not have any financial liability or contingent liability towards any third party/associate/group company of the stock broker in respect of any schemes/leagues/competitions etc. ln other words, the stock broker shall not become the sponsor of such scheme/leagues/competitions etc. ii) In respect of advertisements, if any, the stock broker shall comply with the provisions contained in SEBI Circular MIRSD/9/2010 dated November 04, 2010 and the clauses A(5), C(4)&(5) of Code of conduct specified in Schedule II under Regulation 9 of SEBI (Stock Brokers and Sub-brokers) Regulations, 1992. iii) The stock broker shall not enter into any tripartite agreement with clients/participants and the third party/associate/group company of the stock broker. iv) The current practice, given as part of ‘Client information’ under the heading ‘Rights and obligations of Stock Brokers, Sub-brokers and Clients’, as specified by SEBI vide circular CIR/MIRSD/16/2011 dated August 22, 2011 shall continue to apply as given below:“The stock broker and sub-broker shall maintain all the details of the client as mentioned in the account opening form or any other information pertaining to the client, confidentially and that they shall not disclose the same to any person/authority except as required under any law/regulatory requirements. Provided however that the stock broker may so disclose information about his client to any person or authority with the express permission of the client.” v) The stock broker shall obtain written confirmation from the client that the client shall not have recourse to dispute redressal mechanism/arbitration mechanism/investor protection schemes of the Stock Exchanges/SEBI in case the client avails services under any Regd. Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051
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schemes/leagues/competitions etc. offered by any third party/group company/associate of the stock broker. All the members are advised to strictly adhere to the above requirements in relation to any schemes/ leagues/ competitions etc. launched by members or by any third party/ group company/ associate of the member. For and on behalf of National Stock Exchange of India Limited
Nipa Simaria Chief Manager
Telephone No 1800 22 00 51
Fax No 91 022 26598428
Email id
[email protected]
Regd. Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051
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