Clarification to Enhanced Supervision Circular
Summary
SEBI clarifies operational difficulties faced by stock brokers regarding data uploading under the Enhanced Supervision Circular. The circular exempts custodian settled clients and inactive accounts from specific data upload requirements while adjusting submission timelines. Stock Exchanges are directed to disseminate these clarifications and amend their bye-laws to ensure uniform implementation.
Text
stock broker shall submit the data as on the last trading day of every month to the Stock Exchanges on or before the next three trading days till March 31, 2018.
Thereafter, the uploading of that data by the stock broker to the Stock Exchanges shall be on weekly basis i.e. stock brokers shall submit the data as on last trading day of every week on or before the next three trading days.
the Stock Broker shall not be required to upload data with respect to custodian settled clients.
the stock broker shall not be required to upload the data for the following clients onto the stock exchange system: a) Custodian settled clients
the stock broker shall not be required to upload the data for the following clients... b) Client with zero funds and securities zero balances and also not traded in the last 12 months.
it is clarified that the stock brokers shall submit the data within seven calendar days of the last trading day of the month.
Stock Exchanges shall ensure that, the Internal Auditors also monitor the corrective steps taken by the stock brokers to rectify the deficiencies observed in the inspection carried out by SEBI/Stock Exchanges and the compliance thereof.
The compliance status shall be made as part of the internal audit report.
bring the contents of this circular to the notice of the Stock Brokers and also disseminate the same on their websites.
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above directions in co-ordination with one another to achieve uniformity in approach.
Source: SecMarx — Clarification to Enhanced Supervision Circular. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.