The National Stock Exchange (NSE) on June 23, 2023, issued a Circular regarding the Reporting of Bank Account & Demat Account
This has reference to the Exchange circular NSE/INSP/33409 dated October 14, 2016, wherein members were required to report details of all bank accounts and demat accounts to the Exchange, through the inspection module in the member portal.
The following has been stated namely: -
• It states that in accordance with the SEBI circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, and Exchange circular NSE/INSP/57041 dated June 09, 2023, on “Upstreaming of clients’ funds by Stock Brokers (SBs) / Clearing Members (CMs) to Clearing Corporations (CCs)”, the members are required to change the nomenclature of all these designated client bank accounts ("Name of SB/CM - Client Account") to either of the following categories of Bank Account namely: -
(a) Up Streaming Client Nodal Bank Account (USCNBA): The nomenclature for such accounts shall be “Name of the SB/CM – USCNB account”.
(b) Down streaming Client Nodal Bank Account (DSCNBA): The nomenclature for such accounts shall be “Name of the SB/CM – DSCNB account”. In addition, clearing members, who clear trades for other stockbrokers, shall only use the designated bank account maintained with the nomenclature “Name of the CM –TM prop account” to receive/pay proprietary funds from/to stock brokers.
• It states that the members shall have to maintain a dedicated demat account for subscription/ redemption of MFOS units. The nomenclature for the dedicated demat account shall be “Client Nodal MFOS Account”.
• The members are requested to note that a separate column in the existing Bank account reporting structure under the Inspection module of the Member portal has been made available to members to input “Up Streaming Client Nodal Bank Account (USCNBA)” or “Down streaming Client Nodal Bank Account (DSCNBA)” or “CM –TM prop account” for all existing client bank accounts as well as any new bank account opened by a member
• The members are advised to update the nomenclature for all the existing client bank accounts from the aforesaid three categories in accordance with said SEBI circular dated June 08, 2023, by June 30, 2023. Similarly, one more category i.e., “Client Nodal MFOS Account”, for reporting of Demat account has been made available in the existing DP account reporting structure through the Inspection module of the Member portal.
• The procedure for submitting the aforesaid information through the Inspection module in the Member portal has been attached as Annexure-A
• All Members are advised to take note of the same and strictly comply
[Circular No. NSE/INSP/57266]
