Voluntary freezing of trading accounts for suspected misuse to be standardised, with broker procedures and re enablement safeguards. SEBI directs a standardized framework for voluntary freezing/blocking of online trading account access on clients' requests, to be drafted by the Brokers' Industry Standards Forum under stock exchanges. The framework must specify request modes, acknowledgement procedures, processing timeframes, Trading Member actions upon receipt, re-enablement processes, and client communications. Stock exchanges must ensure implementation, amend bye-laws and establish reporting requirements, and submit a compliance report to SEBI, imposing operational and compliance obligations to protect investor interests.
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Voluntary freezing of trading accounts for suspected misuse to be standardised, with broker procedures and re enablement safeguards.
SEBI directs a standardized framework for voluntary freezing/blocking of online trading account access on clients' requests, to be drafted by the Brokers' Industry Standards Forum under stock exchanges. The framework must specify request modes, acknowledgement procedures, processing timeframes, Trading Member actions upon receipt, re-enablement processes, and client communications. Stock exchanges must ensure implementation, amend bye-laws and establish reporting requirements, and submit a compliance report to SEBI, imposing operational and compliance obligations to protect investor interests.
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