The Bombay Stock Exchange (BSE) on December 29, 2023, issued a notification regarding a uniform penalty structure for Clearing Members.
The following has been stated: -
•Indian Clearing Corporation Limited (ICCL) in consultation with other Clearing Corporations and SEBI has formulated an indicative penalty structure 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.
•It may be noted that these regulatory measures including advisory, warning, monetary fines, penalties, suspension, other regulatory action, etc. are indicative in nature and could undergo change in specific cases depending on the frequency and gravity of violations. The enforcement actions are decided by the Relevant Authority of ICCL by the actual imposition of appropriate regulatory measures on the clearing members. The regulatory measures with respect to violations having a high impact would be dealt with on a case-to-case basis depending on the seriousness and gravity of such violations.
•The regulatory measures to be taken are prescribed in the enclosed Annexure and shall be applicable in respect of inspections commenced from January 01, 2024, onwards.
The detailed notification is given in the document attached below.
[Notice No. 20231229-11]
