The National Stock Exchange (NSE) on December 26, 2023, issued the notification regarding the Uniform penalty structure for Clearing Members.
The following has been stated namely: -
• An indicative penalty structure has been formulated for violations observed during various types of inspections of clearing members like Regular Inspection, SEBI Joint Inspection, Limited Purpose Inspection, Offsite Inspection including enhanced monitoring and supervision or any other type of Focused Inspection/Audit/Investigation/Forensic Audit etc.
• The regulatory measures including advisory, warning, monetary fines, penalties, suspension, other regulatory action, etc. are indicative in nature and could undergo change in the specific cases depending on the frequency and gravity of violations. The regulatory measures in respect of violations having high impact would be dealt with on case-to-case basis depending on the seriousness and gravity of such violations.
• The regulatory measures to be taken are prescribed in Annexure 1 and shall be applicable in respect of inspections commenced from January 01, 2024, onwards.
[Notification No. NCL/CMPL/59930]
