Trading Preferences by Clients
Summary
SEBI has modified the 'Trading Preferences' format in the Master Circular for Stock Brokers to standardize client access across stock exchanges. Stock brokers are mandated to register new clients on all active exchanges and offer existing clients multi-exchange access by default within three months. The circular comes into force on August 1, 2023, and requires stock exchanges to monitor compliance and update their bye-laws.
Text
Based on the representations received and in consultation with Stock Exchanges, it has been decided to standardize the format of “Trading Preferences” in order to ensure that clients are permitted to access all the stock exchanges in which the stock brokers are registered for the same segment.
Para C of Annexure – 8 of “Master Circular for Stock Brokers” ... stands modified as under: C. TRADING PREFERENCES Please sign in the relevant boxes where you wish to trade. Please strike off the segment not chosen by you. Exchanges NSE, BSE & MSEI All Segments Cash / Mutual Fund F&O Currency Debt Commodity Derivatives MCX, NCDEX, BSE & NSE If you do not wish to trade in any of segments / Mutual Fund, please mention here ____________________.
All stock brokers are mandated to register their new clients on all the active stock exchanges after obtaining the trading preferences as per the aforementioned format. For existing clients, the stock brokers are mandated to offer them access on all the active stock exchanges for the segments already opted by them, as a default mode, within three months from the effective date of the circular and inform their respective clients through email / SMS. Clients shall be given a choice to opt out of such access by providing negative consent in this regard. Further, the stock brokers shall activate / deactivate the segments based on the preference of the clients.
The aforementioned provisions shall also be applicable to the clients registered in accordance with SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/73 dated April 24, 2020.
Stock Exchanges are directed to: 8.1. bring the provisions of this circular to the notice of stock brokers and also disseminate the same on their websites; 8.2. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above provisions; 8.3. monitor the implementation and compliance of this circular through half yearly internal audit and inspection of the stock brokers; and 8.4. communicate to SEBI, the status of the implementation of the provisions of this circular in their monthly development report.
The provisions of this circular shall come into force with effect from August 01, 2023.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.
Source: SecMarx — Trading Preferences by Clients. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.