Uniform client documentation requirement standardises broker forms, mandates broker client identification duties and directs exchanges to adopt formats. SEBI prescribes a uniform set of model documents-Client Registration Form, Member-Client Agreement, Tripartite Agreement for cash segment, Uniform Risk Disclosure Document and Broker-Sub-broker Agreement-allowing additional non-conflicting clauses. Brokers must satisfactorily identify clients and may obtain extra information; specified institutional entities are exempt from the Client Registration Form and may agree on agreements and risk disclosures. All requirements are effective immediately except the tripartite agreement effective December 1, 2004. Exchanges must amend bye-laws, disseminate documents to members and report implementation to SEBI monthly.
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Provisions expressly mentioned in the judgment/order text.
Uniform client documentation requirement standardises broker forms, mandates broker client identification duties and directs exchanges to adopt formats.
SEBI prescribes a uniform set of model documents-Client Registration Form, Member-Client Agreement, Tripartite Agreement for cash segment, Uniform Risk Disclosure Document and Broker-Sub-broker Agreement-allowing additional non-conflicting clauses. Brokers must satisfactorily identify clients and may obtain extra information; specified institutional entities are exempt from the Client Registration Form and may agree on agreements and risk disclosures. All requirements are effective immediately except the tripartite agreement effective December 1, 2004. Exchanges must amend bye-laws, disseminate documents to members and report implementation to SEBI monthly.
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