Enhanced Supervision of Stock Brokers/Depository Participants


SEBI UPDATE

Enhanced Supervision of Stock Brokers/Depository Participants 

SEBI issued a Circular providing the Guidelines for Enhanced Supervision of Stock Brokers/Depository Participants. The Guidelines include the nomenclature for bank accounts and demat accounts which is to be uniformly followed, a Sophisticated alerting and reconciliation mechanism for monitoring the Client’s Funds, Changes in the existing system of internal audit for stock brokers/depository participants and Imposition of uniform penal action in the event of non-compliance with specified requirements. It further requires Stock Exchanges/Depositories to disseminate the information provided in the Circular on their website, make necessary amendments for attaining uniformity and communicate to SEBI the status of implementation in their Monthly Development Reports.


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