GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Sebi Tightens Stockbroker Norms to Curb Unauthorised Trades

Under the stricter regulatory framework, stockbrokers have to compulsorily "use telephone recording system to record the instructions and maintain telephone recordings," in case the client is giving the orders on phone.

PTI

Updated:September 26, 2017, 7:52 PM IST
facebookTwittergoogleskypewhatsapp
Sebi Tightens Stockbroker Norms to Curb Unauthorised Trades
File photo of SEBI building, Mumbai. Representative image
Loading...
New Delhi: To prevent unauthorised trading activities, markets regulator Sebi on Tuesday directed stockbrokers to compulsorily keep a record of orders placed by clients from January 1, 2018.

Under the stricter regulatory framework, stockbrokers have to compulsorily "use telephone recording system to record the instructions and maintain telephone recordings," in case the client is giving the orders on phone.

Issuing a circular to the stock exchanges, Sebi said that in spite of measures taken, a considerable proportion of investor complaints is of the nature of 'unauthorised trades'.

"... it has now been decided that all brokers shall execute trades of clients only after keeping evidence of the client placing such order," the circular said.

The evidence could be a physical record written and signed by the client, telephone recording, e-mail from authorised ID, log for internet transactions, a record of SMS or any other legally verifiable record, as per the circular.

"When a dispute arises, the burden of proof will be on the broker to produce the above records for the disputed trade," it added.

The circular would be effective from January 1, 2018.

The regulator said the decision has been taken to further strengthen regulatory provisions against unauthorised trades as also to harmonise the requirements across markets.

Currently, the regulations for commodity derivative markets require members to execute the trade of clients only after keeping evidence of placing the order and the proof could also be in the form of sound recording.

However, there are no such requirements in equity, equity derivative and currency derivative markets.

"Sebi in the past has taken several steps to tackle the menace of 'unauthorised trades' viz periodic running account settlement, post transactions SMS/ email by exchanges/ depositories, ticker on broker/ DP websites...," the circular said.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Kotak Mahindra 1,279.65 8.42
HCL Tech 961.95 -4.99
Sun Pharma 411.25 -2.12
Yes Bank 166.20 -1.34
Reliance 1,133.80 0.90
Company Price Change %Gain
Kotak Mahindra 1,282.25 8.53
Indiabulls Hsg 718.95 -1.80
Sun Pharma 411.30 -2.09
Yes Bank 166.10 -1.31
HCL Tech 961.55 -4.98
Top Gainers
Company Price Change %Gain
Kotak Mahindra 1,279.65 8.42
Bajaj Finserv 5,849.90 3.22
Adani Ports 373.45 2.61
Bajaj Auto 2,786.20 2.51
Bajaj Finance 2,486.35 2.22
Company Price Change %Gain
Kotak Mahindra 1,282.25 8.53
Adani Ports 373.75 2.71
Bajaj Auto 2,779.75 2.23
Infosys 681.05 1.92
Asian Paints 1,317.00 1.69
Top Losers
Company Price Change %Gain
HCL Tech 961.95 -4.99
GAIL 334.70 -4.10
Indiabulls Hsg 716.85 -2.25
Sun Pharma 411.25 -2.12
Coal India 236.75 -1.60
Company Price Change %Gain
Sun Pharma 411.30 -2.09
Coal India 236.80 -1.62
Yes Bank 166.10 -1.31
NTPC 137.85 -0.93
Tata Steel 507.90 -0.62

Live TV

Loading...