The National Stock Exchange of India Limited (NSE) on April 05, 2024, issued a notification regarding the Operational Guidelines and SOP for Monitoring of client funds under Enhanced Supervision.
The following has been stated namely, -
• It states that in reference to https://www.sebi.gov.in/legal/circulars/jan-2024/ease-of-doing-business-changes-in-reporting_80598.html, dated January 12, 2024, notified regarding “Ease of doing business-Changes in reporting” in point 5(b) - Operational guidelines for Computation of ‘G’ Principle and SOP for monitoring of ‘G’ Principles shall be enclosed as Annexure 1.
• Principle G states that the total available funds, including cash and cash equivalents held by the stock broker and the clearing corporation/clearing member, shall always be equal to or greater than clients’ funds/payable as per the ledger balance.
• It also specifies that Compliance with SEBI/Exchanges/CCs provisions for monitoring clients’ funds shall also be included in the internal audit checklist, verified biannually by auditors.
Kindly refer to the attached document for a detailed analysis of Annexure 1.
[Notification no. - NSE/INSP/61508]
