|
Violations Observed |
One or a few instance(s) |
Multiple instances |
|
|
Books of Accounts |
|
|
|
|
· Not
maintained
· Not
maintained properly
· Not made
available for verification
· Not
maintained for branch / sub-broker
· Not
maintained properly for branch / sub-broker
· Not made
available for branch / sub-broker |
3,000/-
1,500/-
Reprimand
3,000/- per office
1,500/- per office
Reprimand |
N.A
N.A
N.A
N.A
N.A
N.A |
*
*
*
*
|
|
Segregation of Exchange wise client
ledgers not maintained
Non-maintenance of vouchers
(entries being directly posted to ledgers)
Non-maintenance of upto date bank
reconciliation statements |
3,000/- per office
Advice
Advice |
N.A
Reprimand
Reprimand |
|
|
Registers and Documents |
|
|
|
|
Non-maintenance of registers
(Register of Securities / Register of Transactions /
Register of Complaints / Dividend ledger / Margin
Deposit Book)
Non-availability of prescribed
information in Registers |
1,500/- per register per office
Reprimand |
1,500/- per register per office
Reprimand
|
|
Non-execution of member /
sub-broker -constituent agreements
Non-execution of member /
sub-broker –constituent agreement in the
prescribed format
Both non-execution of member /
sub-broker -constituent agreements and non-execution
of member / sub-broker -constituent agreement in the
prescribed format in multiple instances
Not obtaining Client registration
forms
Client registration forms not
completed or not supported by documents
Both non-obtainment of client
registration forms and client registration forms not
completed or not supported by documents, in multiple
instances
|
Reprimand
Advice
N.A
Reprimand
Advice
N.A |
3,000/-
1,500/-
3,000/-
3,000/-
1,500/-
3,000/- |
*
*
|
|
Banking Operations |
|
|
|
|
Non maintenance of Client a/c
Non-segregation of own and client
transactions in separate bank accounts
Use of Client bank account for
purposes other than specified |
7,500/-
Reprimand
Reprimand |
N.A
3,000/-
3,000/- |
|
|
Dealings with Clients |
|
|
|
|
Use of clients’ funds for own
purposes / Misuse of clients’ funds / Unauthorised
transfer of funds from one client’s account to
another client’s account
Delay in payment of funds to
constituents
Non-payment or delay in payment of
dividend amounts to constituents / non-reconciliation
of dividend account |
15,000/-
Advice
Advice |
30,000/-
1,500/-
(In case of inordinate delays of
more than 1 week, double the fine amount be levied)
1,500/- |
*
* |
|
Securities due to constituents
transferred to Trading Member’s beneficiary account
Securities due to one client
transferred to other clients OR
Securities due to constituents used
for meeting the payin obligation of the trading member
/ other constituents
Delay in delivery of securities to
the clients
|
Reprimand
15,000/-
Advice |
1,500/-
30,000/-
1,500/-
(In case of inordinate delays of
more than 1 week, double the fine amount be levied) |
*
*
|
|
Brokerage charged at a rate higher
than the permissible maximum of 2.5% |
The Trading Member to be advised to
refund the excess brokerage charged to the
constituents and a fine of an equivalent amount or Rs
5000/-, whichever is higher, be levied on the Trading
Member |
|
|
|
Non-maintenance of Unique client
code / Non maintenance of mapping of the trading codes
to unique client codes |
1,500/- |
3,000/- |
* |
Half yearly statement of accounts for funds
/securities not sent to the clients
|
1,500/- |
3,000/- |
|
|
Dealings with intermediaries |
|
|
|
|
Sharing of brokerage with
-another trading member
-an employee of another trading
member or a person for or with whom trading members
are forbidden to do business
Dealing with intermediaries |
1,500/-
3,000/-
7,500/- per intermediary |
3,000/-
6,000/-
7,500/- per intermediary |
* |
Inspection of the books of
registered sub-brokers not done
|
Reprimand |
3,000/- |
|
|
Contract Notes ( Purchase / Sale
notes in the case of sub-brokers ) |
|
|
|
|
Non-issue of contract notes
Issue of contract notes otherwise
than in the prescribed format / Issue of contract
notes without the signature of authorized signatory or
which do not bear a running serial number or bear a
serial number which is not initiated at the beginning
of each financial year
Issue of contract notes involving
delays
Issue of OTCEI contract notes for
transactions not executed on the exchange / for
fictitious transactions |
1,500/-
Advice
Advice
30,000/- |
3,000/-
1,500/-
3,000/-
60,000/- |
*
* |
|
Difference in trade rate as per the
OASIS system and the rate charged |
Excess amount to be returned to the
client and fine equal to twice the excess amount
charged or Rs 25,000/-, whichever is higher, to be
levied on the trading member |
|
|
|
Transfer of trades executed for one
client to another client
Transfer of trades from PRO account
to client account or vice-versa
Use of fictitious client codes
during order placement |
Advice
1,500/-
3,000/- |
1,500/-
3,000/-
6,000/ |
*
|
|
Off-market transactions
Off-market transactions executed
partly on the Exchange
|
0.01% of trade value or Rs 1,500/-
whichever is higher
0.05% of trade value or Rs 3,000/-
whichever is higher |
0.01% of trade value or Rs 4,500/-
whichever is higher
0.05% of trade value or Rs 6,000/-
whichever is higher |
* |
|
Margin Requirements |
|
|
|
|
Non–collection / short collection
of upfront margins from constituents
Non–collection / short collection
of daily margin from constituents |
Advice |
Reprimand |
|
| |
For short collection of daily
margin upto 20%, the trading member be reprimanded and
in other cases, a fine of 0.1% of amount of short
collection be levied |
|
|
|
Adopting a procedure (like use of
PRO code for clients’ trades) to evade margin |
0.1 % of the margin evaded or Rs
7,500/- whichever is higher |
* |
|
|
Membership Requirements |
|
|
|
|
Fund Based activities |
Advice |
6,000/- |
|
|
Shareholding pattern not verifiable
due to incomplete / absence of records |
A fine of Rs 3,000/- |
|
|
|
Change in the shareholding pattern
without the approval of the Exchange which has
resulted in the dilution of the shareholding / profit
sharing ratio of the dominant group below 51% (40% in
the case of listed trading member) |
30,000/- |
45,000/- |
* |
| |
Withdrawal of trading facility of
the trading member till the changes are approved by
the Exchange |
|
|
|
Any change in the shareholding
pattern / profit sharing ratio without the prior
approval of the Exchange involving dilution not below
the minimum prescribed shareholding of the dominant
promoter group
OR
Any change in the non-dominant
category of unlisted corporate Trading Members
involving induction of new shareholders
Any other change in the
shareholding pattern / profit sharing ratio of the
Trading Member without the approval of the Exchange |
A fine of Rs 1,500/-
Advice |
|
|
|
Non appointment of minimum 2
experienced directors and at least one whole-time
director |
If experienced director(s) is (are)
not available the trading member be advised to appoint
within three months and confirm the same to the
Exchange. In case of non compliance to the Exchange
directive, a fine of Rs 7,500/- be levied per
experienced director not appointed |
|
|
|
Violation of the Advertisement Code
of the Exchange |
1,500/- |
3,000/- |
|
Trading member acting through or
on behalf of another trading member for trading on
the Exchange without the prior approval of the
Exchange in writing
|
3,000/- |
7,500/- |
|
|
Office Management |
|
|
|
|
Usage and operation of a trading
terminal by a person (an employee of the trading
member) other than an approved user |
Advice |
3,000/- |
|
Allotment of terminals to
ineligible persons
|
1,500/- |
3,000 |
|
|
Trading (OASIS) terminals provided
to unregistered intermediaries / unauthorised
extension of trading network / non submission of
required details of terminals to the Exchange |
4,500/- per instance |
4,500/- per instance
|
|
|
Non-display of Notice board |
3,000/- |
6,000/- |
|
Non-display of SEBI Registration
Certificate
|
3,000/- |
6,000/- |
|
|
Other Violations |
|
|
|
|
Wrong reporting of trades as NCIT |
1,500/- |
3,000/- |
|
Wrong reporting of settlement of
BT trades
|
1,500/- |
3,000/- |
|
Non submission of information as
required in the prescribed format to the Exchange
for underwriting
|
Reprimand |
3,000/- |
|
|
Commencement of Internet Trading
without prior approval from the Exchange |
3,000/- |
NA |
|
