Regulation 24 - Escalation and reporting mechanisms

Stock broker internal compliance reviews and suspicious trading reports to stock exchanges mandated, with half-yearly action summaries required.

Requires stock brokers to review compliance with the Chapter's regulatory requirements at least quarterly, with the operative effect of instituting periodic internal compliance assessment. Mandates prompt reporting to recognised stock exchanges, in the specified manner, upon detection of any suspicious activity, fraud, or market abuse, with the operative effect of enabling immediate regulatory escalation and exchange action. Prescribes half-yearly submission to recognised stock exchanges of a summary analysis and action-taken report on such instances, with the operative effect of ongoing accountability and supervisory monitoring. Requires deviations from internal controls, risk management, surveillance, and client onboarding policies, along with proposed corrective actions, to be placed before the appropriate committee/board or equivalent bodies at regular intervals, with the operative effect of formal governance oversight; such deviations must also be included in the half-yearly report. Permits seeking guidance from a recognised stock exchange where a suspicious activity is identified but a violation cannot be ascertained, with the operative effect of clarifying reporting support.