This is with reference to SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/061 dated April 25, 2023, and Exchange Notice 20230425-35 dated April 25, 2023 on "Bank Guarantees (BGs) created out of clients’ funds".
In accordance with the aforesaid SEBI Circular, the following provisions were required to be implemented:
a. No new Bank Guarantees (BGs) shall be created out of clients’ funds by Members w.e.f. May 01, 2023.
b. Existing Bank Guarantees (BGs) created out of clients’ funds shall be wound down by September 30, 2023.
Further, as per Para 5 of the aforementioned SEBI Circular, members are required to submit a certificate to the Stock Exchange by October 16, 2023, confirming the implementation of provisions of SEBI Circular duly certified by their Statutory Auditor.
Accordingly, Members are advised to submit the aforesaid certificate in the prescribed format enclosed as Annexure A. Members who are carrying out only proprietary trading without any clients since the date of above SEBI Circular, shall submit a one-time declaration.
An online facility is being provided to members for submission of Statutory Auditor Certificate / one time declaration to the Exchange. User manual for submission of the certificate / one time declaration is enclosed as Annexure B.
All members are advised to take note of the contents of this Notice and comply.
In case of any clarifications, members may contact us on details given as under:
For and on behalf of BSE Ltd.
Hitesh Kumar Desai Kalpesh Ganger
Gen. Manager Manager
Inspection Inspection
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