To
All Members/Participants,
Indian Clearing Corporation Limited (ICCL) in consultation with other Clearing Corporations and SEBI has formulated an indicative penalty structure for violations observed during various types of inspections of clearing members like Regular Inspection, SEBI Joint Inspection, Limited Purpose Inspection, Offsite Inspection including enhanced monitoring and supervision or any other type of Focused Inspection/ Audit/Investigation/Forensic Audit etc.
It may be noted that these regulatory measures including advisory, warning, monetary fines, penalties, suspension, other regulatory action etc. are indicative in nature and could undergo change in specific case depending on frequency and gravity of violations. The enforcement actions are decided by the Relevant Authority of ICCL by actual imposition of appropriate regulatory measures on the clearing members. The regulatory measures in respect of violations having high impact would be dealt with on case-to-case basis depending on the seriousness and gravity of such violations.
The regulatory measures to be taken are prescribed in the enclosed Annexure and shall be applicable in respect of inspections commenced from January 1, 2024 onwards.
Members are advised to take note of the same and put in place systems and procedures to ensure adherence to the compliance requirements.
For and on behalf of Indian Clearing Corporation Limited
Ganesh Kanaujiya
Senior Manager |