To All Clearing Members,
This has reference to SEBI circular No. CIR/HO/MIRSD/DOP/CIR/P/2019/75 dated June 20, 2019 and SEBI/HO/MIRSD/DOP/CIR/P/2019/95 dated August 29, 2019 on Handling of Client’s Securities by Trading Members/ Clearing Members.
The Clearing Corporation in consultation with other Clearing Corporations has formulated an indicative penalty structure for any non-compliance of the provisions of the said circular. The penalty structure is enclosed at Annexure A.
The said penalty norms shall be applicable for instances of non-compliances observed from the date of applicability of the provisions of stipulated in the SEBI circular dated June 20, 2019 read with SEBI Circular dated August 29, 2019. The structure is indicative in nature and the Relevant Authority of the Clearing Corporation may, on case to case basis and based on the gravity of the violation, impose additional penalty.
Members are requested to take note.
For and on behalf of ICCL
Piyush Chourasia
Chief Risk Officer & Head – Strategy
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