Ease of Doing Investments by Investors- Facility of voluntary freezing/blocking of Trading Accounts by Clients
Summary
SEBI mandates that the Brokers’ Industry Standards Forum (ISF) must establish a framework for trading members to offer voluntary freezing or blocking of client trading accounts by April 1, 2024. Stock exchanges are required to ensure the implementation of these guidelines by July 1, 2024, and submit a compliance report to SEBI by August 31, 2024. The circular empowers investors to block their online trading access in response to suspicious activities, mirroring facilities available for demat accounts.
Text
framework for Trading Members to provide the facility of voluntary freezing/blocking the online access of the trading account... shall be laid down on or before April 01, 2024, by the ISF
Detailed policy for voluntary freezing/ blocking the online access of the trading account of the client including modes through which a client can request/communicate... issuing of acknowledgement... time period within which the request shall be processed
Action to be taken by the Trading Member pursuant to the receipt of request for freezing/blocking of the trading account
Process for re-enabling the client for trading/transfers
Intimation to be provided by the trading member to the clients w.r.t. introduction of the facility to block the trading accounts
Stock Exchanges shall ensure that the guidelines so issued under the aforesaid Framework are implemented by Trading Members with effect from July 01, 2024
Stock Exchanges shall also put in place an appropriate reporting requirement by Trading Members to enforce the above system. A compliance report to this effect shall be submitted to SEBI by Stock Exchanges latest by August 31, 2024
take necessary steps and put in place necessary systems for implementation of above
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above
bring the provisions of this circular to the notice of Trading Members and also to disseminate the same on their website
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 30 of SEBI (Stock Brokers) Regulations, 1992
Source: SecMarx — Ease of Doing Investments by Investors- Facility of voluntary freezing/blocking of Trading Accounts by Clients. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.