The Bombay Stock Exchange (BSE) on October 05, 2023, issued a notification regarding the Reporting requirement on Bank Guarantees created out of clients’ funds
This has a reference to the SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/061 dated April 25, 2023, and Exchange Notice 20230425-35 dated April 25, 2023, on "Bank Guarantees (BGs) created out of clients’ funds".
The following has been stated namely: -
• It states that No new Bank Guarantees (BGs) shall be created out of clients’ funds by Members w.e.f. May 01, 2023.
• It states that the Existing Bank Guarantees (BGs) created out of clients’ funds shall be wound down by September 30, 2023.
• The members are required to submit a certificate to the Stock Exchange by October 16, 2023, confirming the implementation of provisions of SEBI Circular duly certified by their Statutory Auditor.
• The Members are advised to submit the aforesaid certificate in the prescribed format enclosed as Annexure A. Members who are carrying out only proprietary trading without any clients since the date of the above SEBI Circular shall submit a one-time declaration.
• It further states that an online facility is being provided to members for submission of Statutory Auditor Certificate / one-time declaration to the Exchange.
• The user manual for submission of the certificate / one-time declaration is enclosed as Annexure B.
• The Members are advised to mail the aforesaid certificate in the prescribed format enclosed as Annexure to [email protected]
[Notification No. 20231005-55]
