sebi:WTM/RKA/ISD/143/2016
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Facts / Headnote
Representations of the broker disposed of, subject to conditions
Parties
- Gee Bee Securities Private Limited
Holding
The representations of Gee Bee Securities Private Limited were disposed of permitting it to open a new client margin account, transfer clients' securities from its frozen beneficiary account to that account, create pledges on clients' securities for margin benefits, and invoke pledge/sell securities on client default, subject to stated conditions and supervision of exchanges and depositories.
Full text
__________________________________________________________________________ Disposal of the representations of Gee Bee Securities Private Limited Page 2 of 2 client margin account whereby:
a. It can open a new account and tag it as client margin account. b. It can transfer clients’ securities from its beneficiary account (frozen) to the newly created client margin account pursuant to the satisfaction of the depository that these securities pertain to the clients. c. In the new client margin account, it can create pledge on clients' securities for the purpose of giving them margin benefits. In case of default by the client, it can invoke the pledge/ sell clients’ securities from the client margin account. d. It is allowed to close any existing pledge/ lien marked to its beneficiary account (i.e. frozen).
Subject to the following: a. No proprietary dealing or buy or sale of securities in proprietary capacity shall be made from this newly created margin account by the broker. b. In case of sale of securities from the client margin account, the broker has to satisfy the exchange/ depository that the securities pertain to the client who has defaulted to pay the margin money. c. Sale of client's shares from the client margin account shall be under the supervision of Exchange/ Depository. d. It has to comply with requirements of Exchange/ Depository, if any, in this regard. e. Further an audit trail may be maintained for each and every transaction in the said account.
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Source: SecMarx — sebi:WTM/RKA/ISD/143/2016. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.