The National Stock Exchange (NSE) on December 29, 2023, issued the Penalty Structure with respect to Unauthorized Trades.
The following has been stated namely: -
• The penalty on unauthorized trades as observed by the Investor Grievance Redressal Committee (IGRC/Arbitration/Appellate) is now being extended to unauthorized trades observed by the Conciliation/Arbitration under Online Dispute Redressal Mechanism (ODR).
• The Contravention: -
1. Unauthorized trading observed by Arbitrators while finalizing Arbitration/Appellate awards under the old mechanism, even if the trading member settled the claim.
2. Unauthorized trading as observed by Conciliator/Arbitration under the Online Dispute Resolution (ODR) mechanism even if the trading member settled the claim.
• The Penalty for the above has been stated in the notification.
• The revised penalty structure is applicable for the cases in respect of trades executed and determined as unauthorized trades by the GRC order/Conciliatory reports/Arbitration/Appellate Awards from December 29, 2023.
[Notification No. NSE/ISC/60035]
