The Bombay Stock Exchange (BSE) on November 07, 2023, issued the notification regarding the Bank Guarantees (BGs) created out of clients’ funds.
The following has been stated namely: -
• Member cannot create BG out of clients’ funds and the value of any BG including BG created out of members’ own funds cannot be considered for the computation of availability of client payables. This was in effect from October 01, 2023.
• BG should not be considered for the computation of availability of client payables and accordingly, members should not include the value of BG while reporting data towards the weekly monitoring of client funds (Enhanced Supervision of Stock Brokers).
[Notification No. 20231107-1]
