The Bombay Stock Exchange (BSE) on April 08, 2024, issued a framework for Trading Members to provide the facility of voluntary freezing/blocking the online access of the trading account to their clients.
The following has been stated: -
•This is with reference to SEBI Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/4 dated January 12, 2024, and Exchange Notice No. 20240112-30 dated January 12, 2024, on the subject “Ease of Doing Investments by Investors - Facility of voluntary freezing/ blocking of Trading Accounts by Clients”.
•The framework for trading members to provide the facility of voluntary freezing/blocking the online access of the trading account to their clients on account of suspicious activities as finalized in accordance with point no. 4 of the SEBI Circular is enclosed as Annexure – 1.
•The trading members shall frame a policy in line with the above-mentioned framework, which shall be part of the trading member’s Risk Management Policy. The trading members shall disclose on their website, the above policy along with the process and mode(s) through which the client can place the request to freeze / block & unfreeze/unblock the trading account along with the timelines that will be followed by the trading members for the same.
•With respect to new clients onboarded with effect from July 01, 2024, the policy so framed in line with the above-mentioned framework shall form part of the account opening kit.
The detailed circular is given in the document attached below.
[Circular No. 20240408-12]
