Enhanced supervision of stock brokers: exchanges must monitor client funds, enforce account nomenclature and trigger alerts for misuse. Stock Exchanges and Depositories must enforce prescribed account nomenclature and prompt reporting by brokers, implement a weekly-data based monitoring mechanism calculating reconciliation metrics (G, H, I, J) to detect misuse of client funds, and act on alerts by seeking clarifications, conducting inspections and initiating remedial steps. Brokers must comply with internal audit rotation and reporting rules, submit standardized financial statements and indicators, upload monthly client-wise fund and securities balances to exchanges, follow rules on pledging client securities, and observe prescribed running account settlement and PAN disclosure requirements.
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Enhanced supervision of stock brokers: exchanges must monitor client funds, enforce account nomenclature and trigger alerts for misuse.
Stock Exchanges and Depositories must enforce prescribed account nomenclature and prompt reporting by brokers, implement a weekly-data based monitoring mechanism calculating reconciliation metrics (G, H, I, J) to detect misuse of client funds, and act on alerts by seeking clarifications, conducting inspections and initiating remedial steps. Brokers must comply with internal audit rotation and reporting rules, submit standardized financial statements and indicators, upload monthly client-wise fund and securities balances to exchanges, follow rules on pledging client securities, and observe prescribed running account settlement and PAN disclosure requirements.
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