OTC EXCHANGE OF INDIA

CIRCULAR

 

Ref. No.: OTC/MD/Circular 1
Date: 15^th Sept. 2003

 To

All Members/ Dealers

 

Sub: Pro  account” trading terminal

 SEBI has issued a circular no. SEBI/MRD/SE/Cir- 33/2003/27/08 of 27/08/2003 regarding “Pro – account” trading terminal. The contents of the relevant instructions are given below.

Quote

1. During the course of inspections carried out by SEBI and stock exchanges of the books of accounts and other documents of members, it has been observed that certain members are putting large number of orders on pro-account from various locations rather than using “pro-account” at the terminals located at the corporate office from where the owner/directors normally function. It has further been observed that these trades executed from various locations under “pro-account” are, many a time, transferred subsequently to the respective clients in the back office of the members. This practice is in clear violation of putting the orders of clients under the appropriate client code through trading terminals.
2. With a view to check such misuse of the above facility, if any, stock exchanges are directed to ensure the following:

 

2.1.                  Facility of placing orders on “pro-account” through trading terminals shall be extended only at one location of the members as specified/required by the members.

2.2.                  Trading terminals located at places other than the above location shall have a facility to place orders for and on behalf of a client by entering client code details as required/ specified by the Exchange/SEBI.

2.3.                  In case any member requires the facility of using “pro-account” through trading terminals from more than one location, such member shall be required to submit an undertaking to the stock exchanges stating the reason for using the “pro-account” at multiple locations and the stock exchange may, on case to case basis after due diligence, consider extending the facility of allowing use of “pro-account” from more than one location.

Unquote

 Members are advised to comply with the above circular with immediate effect.

 Yours faithfully,

 For OTC Exchange of India

 R.Anand

Asst. Vice President