Members’ attention is drawn to Exchange Notice No. 20051213-3 dated December 13, 2005, and 20210209-41 dated February 09, 2021, wherein Trading Members were advised not to indulge in practice of financing securities transactions. Members were also advised to desist from acting as a conduit or front for financing any secondary market transactions entered by their clients, directly or indirectly except in accordance with the regulatory provisions of Margin Trading Facility and Securities Lending and Borrowing.
Further, Exchange vide Notice No. 20220705-40 dated July 05, 2022, reiterated that “Trading Members shall not share transaction / obligation details of the clients with NBFC or any other lending institutions”.
However, during inspection of Trading Members, it was observed that unique client codes, settlement details and obligation details of clients’ transactions were shared by Trading Members with their related NBFC entities.
In view of the above, it is reiterated that members are advised to refrain from sharing data relating to transaction / obligation details of the clients with any NBFCs or any lending institutions.
All members are advised to take note of the same and comply.
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. General Manager
Inspection Inspection |