This is with reference to SEBI Circular no. CIR/MIRSD/16/2011 dated August 22, 2011, and Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/73 dated April 24, 2020, and SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/71 dated May 17, 2023.
The Exchange, in the recent past, has observed that some of the members are taking default consent for the trading preferences (Selection of Segment), either being auto populated or provided as a default option, with or without providing any option to the client to deselect/opt out of any such segment(s) at the time of onboarding.
By not obtaining the express consent and/or explicit confirmation from the clients regarding Trading preference in the Equity Derivatives/Currency Derivatives/Commodities Derivatives Segments (hereinafter collectively referred as "Derivatives Segments") during online account opening process, the members are not adhering to the guidelines issued vide aforesaid circulars w.r.t trading account opening including onboarding of the clients through online KYC.
In view of the above, it is reiterated that the members shall obtain express consent and/or explicit confirmation from the clients for the trading preferences in the Derivatives Segments by providing an option to the clients to only select/opt in at the time of onboarding of the client.
Members are advised to take note of the contents of the Circular and ensure strict compliance.
In case of any clarifications, members may contact us on details given as under:
For and on behalf of BSE Ltd.
Hiteshkumar Desai Richa Ghosh
General Manager Asst. Gen. Manager
Inspection Inspection |