The National Stock Exchange (NSE) on July 05, 2024, notified regarding the Enforcement actions against the Trading Members.
The following has been stated:
• Schedule I (B) Sr. No. 63 for observation ‘Member has not maintained pre order confirmation of trades’:
The SEBI Circular No. SEBI/HO/MIRSD/DOP1/CIR/P/2018/54 dated March 22, 2018 mandates Trading Members to maintain evidence of pre-order placement for trades of clients.
Non-compliance to above Circular such as non-maintenance or not providing pre-order placement evidence for trades of clients when sought, shall be construed by the Exchange as unauthorized trade executed by the Trading Member as said trades were executed without the consent of the client. Accordingly, penalty structure with respect to unauthorized trades informed vide Exchange Circular No. NSE/ISC/60035 dated December 29, 2023 and similar circulars issued from time to time, shall be applicable to the above mentioned non-compliance.
• Schedule I – penalties where ‘Advice’ and ‘Warning’ is applicable:
In case where current applicable action as per the penalty structure mentioned in the Exchange Circular No. NSE/INSP/53530 dated September 2, 2022, is 'Advice' or ‘Warning’ and the Exchange observes repeated violation of the same nature and magnitude subsequently, in such cases, the said action shall be escalated including monetary penalty.
• The Exchange Circular NSE/INSP/53530 dated September 2, 2022, on Enforcement actions against the Trading Members stands modified to the extent of the above-mentioned details.
This notification will come into force from July 05, 2024.
[Notification No NSE/INSP/62813]
