The National Stock Exchange (NSE) on May 22, 2023, issued a circular regarding the Penalty Provisions for trading terminals without having valid certification.
This has a reference to Circular No. NSE/INSP/40559 dated March 27, 2019, related to the passing of the certification program by the associated persons of the Members.
The following has been stated namely: -
• It states that all approved persons of the Members should have valid certification as specified by SEBI/Exchange from time to time and no trades are executed without a valid certification.
• The Members are advised to monitor the expiry of certification of approved persons and ensure that requisite certification has been renewed well before the expiry, and shall exercise appropriate due diligence and verify the authenticity and validity of the certification prior to uploading the certification details to the Exchange.
• it has been decided to prescribe the revised penalty structure in case of “operation of the trading terminal by the user without valid certification” for the Cash segment as well as Derivative Segments as per the Table attached.
• It states that the Exchange shall deactivate the user ids/trading terminals of all approved persons (NEAT as well as 12-digit NNF terminals) having expired certification or not meeting certification requirements as specified by SEBI/Exchange from time to time as on the End of Day of November 01, 2023.
• It further states that the same shall be applicable if the certification has expired for any user type i.e., Corporate Manager, Branch Manager, and Dealer NEAT user id OR 12-digit NNF terminals with purpose reported as “Trading” as per certificate requirements specified for respective segments vide Exchange Circular no. NSE/INSP/34638 dated April 13, 2017.
• The Members are requested to take note of the contents of the circular and ensure strict compliance.
[Circular No: NSE/INSP/56784]
