Centralized Reporting for Investor Demise through KRAs In order to streamline the transmission process in the securities market, a centralized mechanism for reporting and verification in the event of an investor’s demise has been implemented. This circular outlines the operational norms and the obligations of various regulated entities, such as registered intermediaries who interact with investors or account holders. Introduction The purpose of this circular is to introduce a centralized mechanism for reporting and verifying […]

Internal Audit of Trading Members-Update   Introduction and Purpose This communication pertains to Exchange Circular No. NSE/INSP/56678 dated May 11, 2023, which sets forth the framework for the selection of auditors and outlines the eligibility criteria for conducting internal audits of trading members. Revision of Eligibility Criteria Following feedback from various member associations, the exchanges have collectively reviewed and revised the eligibility criteria for conducting internal audits of trading members. Please refer to Annexure A […]

Updated penalties for audit report submissions Note: This revised circular is in reference to NSE Circular Ref No-NSE/INSP/53530 dated September 02, 2022, NSE/INSP/54386 dated November 11, 2022, & NSE Circular No- NSE/INSP/56308 dated April 10, 2023. Introduction This circular aims to inform trading members about the updated framework of penalties and disciplinary actions related to the submission of preliminary audit reports, Action Taken Reports (ATR), Follow-on Audit Reports, and the closure of reported observations in […]

Reporting Requirement on Bank Guarantees (BGs) created out of clients’ funds This article provides important information regarding the reporting requirement for Bank Guarantees (BGs) created from clients’ funds, as outlined in SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/061 dated April 25, 2023, and Exchange Circular No. NSE/INSP/56489 dated April 25, 2023. Introduction In compliance with the aforementioned SEBI Circular, it is mandatory to implement the following provisions: No creation of new Bank Guarantees (BGs) from clients’ funds Effective […]

Operating Guidelines for Trading Supported by Blocked Amount in Secondary Market – NSE Segment: Equity Cash Segment In an effort to streamline trading in the secondary market, the Securities and Exchange Board of India (SEBI) has introduced a supplementary process known as the Facility. Under this process, trading is based on the amount blocked in an investor’s bank account. This circular outlines the operational guidelines for the Facility. Registration for the Facility Availing the Facility […]