Frns.. i'v an assingment n i need help.. Please let me know of 5 laws which support industries or businesses and 5 laws which are detrimental to a proper business environment.
The Question is like this:
INDIAN LEGAL ENVIRONMENT
Facilitators and Obstacles..
Pls help..
2006-07-19 20:43:36 · 2 answers · asked by Varun 1 in Business & Finance ➔ Corporations
BUSINESS RULES FOR TRADING ON NSE THROUGH ISE SECURITIES & SERVICES LTD. (ISS)
1.
Only Traders / Dealers of ISE duly registered by SEBI shall be allowed to be registered as sub-brokers of ISS. Only such registered Sub-brokers of ISS, who are termed as registered Intermediaries hereafter, shall be allowed to operate on the NSE segment through ISS.
2.
ISS would not trade for investors directly.
3.
All such Registered Intermediaries shall be allowed to trade only in those securities, where SEBI has made delivery in Demat form compulsory, for all categories. They may trade in the Capital Market Segment, Derivatives segment and the Retail Debt Market segments on NSE.
4.
All such Registered Intermediaries would be the authorized users for the NSE's Computer-To- computer Layer (CTCL) connectivity and trading system through ISS. Registered Intermediaries may also open branch offices, where they may appoint additional authorized users attached to them after obtaining approval (by submitting data in requisite format as given in Annexure A), the Registered Intermediaries would be responsible for the obligations created in the market and also the legal issues attached. In case any Registered Intermediary has allotted terminals to unregistered sub-brokers and other unauthorised persons, in gross violation of the requirement, they stand the risk of suspension/de-activation. Registered Intermediaries are advised to strictly comply with the requirements in this regard. Any violation thereof will be viewed seriously and strict action will be initiated. Registered Intermediaries are also advised to ensure that any change in trading terminal details is carried out only after duly informing ISS.
Any change in the CTCL location should be intimated to ISS using this facility and only on receipt of a success file from ISS should the change of location be implemented. Changing of the CTCL locations without express permission of ISS will also be treated as a serious non-compliance. (Inserted vide ISS circular ref. no. 03-04/ISS/15832/MR dated January 28, 2004)
5.
Deposits: (At present, all deposits shall be interest free)
Each Registered Intermediary shall be required to submit the following initial deposit in the form of cash (at least 25%) and Bank Guarantee/Fixed deposit (maximum 75%) only: a) Minimum Rs. 50,000/- in cash (no interest payable)
This may be increased thereafter in the form of additional deposits, in multiples of Rs. 5,000.00, in the proportion 30% cash (at least, on which interest would not be payable) and 70% Bank Guarantee/Fixed Deposit (validity for the BG should be a minimum of six months with a one month claim period from the expiry of the aforesaid BG) or cash deposits on which no interest would be payable. Registered Intermediaries are required to submit the document on their letterhead duly signed by the Authorised Signatory. After receipt of this document, all requests for increase in Additional Capital/ Initial Margin can be immediately attended to and limits enhanced in a much shorter time span. (ISS circular ref. no. 03-04/ISS/15638/MR dated January 19, 2004 and ISS circular ref. no. 03-04/ISS/16336/MR dated February 26, 2004) This additional deposit should be placed for a minimum period of one month with ISS. Bank Guarantees may be obtained only from the list of Banks as approved by NSE from time to time. The revised format for such Bank Guarantees and related documents are given at Annexure B (The revised format of such Bank Guarantees issued vide circular ref. No. 04-05/ISS/20687/GC dated November 20, 2004).
Additional deposits may be withdrawn, after ensuring that the Registered Intermediary has reduced his exposures to the level applicable after withdrawal of such additional deposit. In case additional deposit has been demanded by ISS, due to violation of any of the prescribed rules, the minimum retention period would be of one month. Additional deposits would be released to the Registered Intermediaries after receiving their requests for the same.
In case of deposit of additional capital by way of cash deposit in the relevant settlement account of the Registered Intermediary, he would be required to inform the same to ISS by fax (as per Format I given in Annexure N attached). (Deleted) The trading limits would be enhanced within an hour from receipt of such intimation. In case of additional deposits in the form of Bank Guarantees/Fixed Deposit, 75% of the value of the Bank Guarantee/Fixed Deposit will be enhanced once it is confirmed that all documents are in order and further limits will be enhanced after ISS receives back-to-back limits with NSE.
(Enhancement of limits to the extent of 100% of the value of BG / FD furnished - w.e.f September 6, 2004 as per ISS circular ref. 04-05/ISS/19340/GC dated September 6, 2004)
6.
Trading limits:
A Registered Intermediary would be given trading limits:
Type of limit Computation
Turnover Limits 25.00 times the total deposit maintained with ISS
Gross Exposure Limits 8.5 times the initial and additional deposit with ISS
In cases where the Base Deposit get eroded due to adjustments towards funds pay-in the Gross exposure multiplier permitted for trading purposes shall be revised downwards as per the following
Deposit amount Multiple for Gross
Exposure purposes
Greater than or equal to Rs. 2 lakhs 8.5 times
Less than Rs. 2 lakhs but greater than Rs. 1 lakh 6.0 times
Less than Rs 1 lakh 3.5 times
Illustration of trading limits on the basis of various combinations of deposits
Deposit (Rs. in Lakh) Limits (Rs. in Lakh)
Cash Bank Guarantee Total Intra-day Turnover Gross Exposure
0.50 1.50 2.00 50.00 17.00
0.80 2.20 3.00 75.00 25.50
1.50 3.50 5.00 125.00 42.50
2.90 7.10 10.00 250.00 85.00
4.40 10.60 15.00 375.00 127.50
For meeting margin requirements, Registered Intermediaries shall be required to tender either cash deposits or Fixed Deposits/Bank Guarantees (whose validity would be for a minimum period of 6 months, with one month claim period from the expiry of the aforesaid BG). Such margin deposits shall have to be in multiples of Rs.5,000. Thus, the margin deposit rendered by a Registered Intermediary would be used by ISS to meet the ongoing margin requirements of NSE.
In the case of a Registered Intermediary having a purchase position, as well as a sale position on day T, the carry forward exposure at the beginning of day T+1 would not include the exposure for the sale transaction (in full or in part) to the extent of pay-in of securities effected on day T itself. Therefore, the securities delivered on day T would result in corresponding release of exposure for T+1. Further, purchase side exposure would be released on T+1 only if the entire securities pay-in for T is completed on T itself. (Inserted vide ISS circular ref. No. 03-04/ISS/15267/MR dated January 2, 2004)
7.
The cost of trading on the NSE Capital Market segment would be as follows:
Particulars Rates
Brokerage Rs.6.00 per lakh of turnover
Transaction charges Rs. 7.00 per lakh of turnover
The charges will be exclusive of Stamp Duty (presently 0.01% of delivery value and 0.002% on squared up transactions). Service Tax (8% of the brokerage charged) (10.2% of brokerage charged, including 2% education cess, w.e.f. September 10, 2004 - issued vide ISS circular ref. no. 04-05/ISS/19465/GC dated September 10, 2004) would be charged additionally to the Traders / Dealers. All charges / fees, etc. being debited / charged would be reflected in the various bills/intimations on a settlement basis or monthly basis. If a trade is squared up on the same day then the second leg will be charged Brokerage @ Rs. 3.00 per lakh of turnover. The other charges will be applied as in the first leg.
The Registered Intermediaries shall be required to remit the charges for network connectivity (leased line or VSAT) to the relevant authority of ISE or ISS as per the schedule intimated to them. The recurring charges for network usage would also have to be borne by the Registered Intermediaries. Other charges applicable would include FDR/BG Commission charges, securities borrowing charges etc
In addition, the charges levied by the Depository Participant, where ISS maintains its Clearing Member Pool Account, for handling demat accounts and for effecting securities movement between the different beneficiary accounts and the ISS Clearing Member Pool Account will have to be borne by the concerned Traders / Dealers.
8.
There would be no restriction on the maximum order value that a Registered Intermediary can enter, as long as he operates within his permissible trading limits.
Any delivery of securities effected by a Registered Intermediary through transfer to the Clearing Member Pool account of ISS, against his outstanding sales position, immediately after trading would be excluded from computations of his gross exposure. Similarly, margins would not be attracted for deliveries transferred to ISS in such cases.
The following rules would be applicable in case of early pay-in of securities, i.e. securities tendered against outstanding sales positions:
a) The securities may be tendered only after the end of the relevant settlement period.
The following rules would be applicable in case of early pay-in of funds:
a) The funds may be tendered only after the end of the relevant settlement period.
b) The funds pay-in is completed in full for all segments.
Benefit for part funds pay-in will be on a best efforts basis only.
Facility for reporting Early pay-in of funds (Applicable w.e.f. January 2, 2004)
In case Registered Intermediaries wish to make early pay-in of funds for a settlement, a request has to be forwarded to ISS. The request should be made using a facility made available in FTP (Home Page) called 'Request for early funds pay-in'. The settlement number for which early pay-in of funds would have to be made should be mentioned. It is clarified that early pay-in of funds would have to be for both the Normal and Trade For Trade segments. Part funds pay-in will not be considered. This facility will be available between 4:00 p.m and 5:30 p.m on any given day. (Inserted vide ISS circular ref. no. 03-04/ISS/15267/MR dated January 2, 2004)
9.
At the end of each trading day, ISS would be generating Contract Notes separately for each Registered Intermediary for the trades done by him through ISS on the NSE segment, giving therewith the contract numbers. These contracts would be downloaded in an electronic mode through appropriate connectivity within 2 hours from close of the market to the TWSs of the Registered Intermediaries or to such other convenient locations to which the Registered Intermediaries have access. These document / file downloads giving the contract numbers may be used by the Registered Intermediaries for generation of confirmation memos / purchase or sale notes to be given to their clients. The Contract Notes will be Digitally signed and Registered Intermediaries will have to revert to ISS within 24 hours in case of non-receipt of the Contract Notes. In case ISS does not receive any query within 24 hours from the Registered Intermediary it will be deemed that the Contract Notes have been received and the transaction details are in order
Similarly, Bills would be downloaded within 24 hours from the end of the Settlement. Digitally signed Bills will also be made available latest by T+1.
10.
ISS has appointed clearing bankers, i.e. HDFC Bank Ltd. and ICICI Bank Ltd. for purposes of funds clearing of ISS with regard to obligations on the NSE market. For locations which are not serviced by HDFC Bank ICICI Bank has been appointed as a Clearing Banker.
Every Registered Intermediary shall be required to open two accounts, namely Settlement and Client account, for the purpose of all monetary operations, with regards the obligations created by him while trading on NSE through ISS (viz. Margin pay-ins, Settlement pay-in and pay-out). ISS in turn would communicate with such branches of the approved Clearing Banks, through an appropriate mode (electronic or otherwise) for communicating particulars of the debit or credit instructions. The Settlement account would not have withdrawal (cheque book) facility (funds may only be transferred to the client account) whereas in case of Settlement account with HDFC bank, the Registered Intermediary would have facility of self cheques only.
Every Registered Intermediary would be given the schedule of payments for various obligations, which should be available in the designated account as a clear balance at the specified time and date. All movement of funds between the Registered Intermediaries and ISS would be through this mode. The details of the approved Clearing Banks, addresses, contact persons and telephone / facsimile numbers are given at Annexure C for each location. Opening of these accounts and intimating ISS about the same would be a pre-requisite for commencing operations by a Registered Intermediary.
In such locations, where HDFC Bank is not available, a facility of correspondent banks of HDFC Bank is available. (A registered Intermediary is not bound to use the services of the correspondent bank, if he is having any other alternative arrangement). The Registered Intermediary shall fund his Settlement Account with HDFC Bank through the correspondent bank, for which he would have to bear the costs. The instructions for transfer of funds should be within the prescribed schedule of ISS. HDFC Bank provides net based banking transactions also, which could be used by the Registered Intermediaries.
The Registered Intermediary may use his discretion to open a separate client account for the NSE segment or use the designated client account as applicable for ISE operations. He would be required to adhere to the guidelines prescribed by SEBI for operation of client account(s).
11.
Every Registered Intermediary shall be required to open a beneficiary account with any Depository Participant (DP) for the purpose of effecting delivery pay-in and for receipt of securities at the time of delivery pay-out by ISS. Opening of these accounts and intimating ISS about the same would be a pre-requisite for commencing operations by a Registered Intermediary.
ISS would accept direct credits for the purpose of securities pay-in from the beneficiary accounts of the clients of the Registered Intermediaries of ISS. For this purpose, the Registered Intermediaries would have to register their clients (who wish to deliver the securities directly to the Pool Account of ISS) in advance. A facility has been created in the extranet server so that they may register their clients with ISS. If deliveries are received from unregistered clients then the delivery will not be considered.
Information on deliveries tendered will have to be provided to ISS in the format as mentioned in "ISS Form- 7". Requests for return of excess deliveries will have to be tendered in the format as mentioned in "ISS Form- 8". (Deleted)
Requests for Inter-Settlement Transfers for securities pay-in would have to be submitted to ISS using a facility that has been made available in the extranet server. The data will have to be submitted on the day of the sale itself. Alternatively the Registered Intermediary may opt for the Auto Inter settlement transfer instruction route. The format of the undertaking to be submitted (in case this route is opted) is enclosed. Annexure D
Registered Intermediaries may further note that, FTP (File Transfer Protocol) service has been installed for transfer of files for reports pertaining to ISS operations. This would be available during non-trading hours. The onus would lie on the Registered Intermediaries to take this download and be aware of their positions and commitments to fulfill all obligations pertaining to ISS operations.
12.
Regional Clearing Houses have been established at all the Participating Exchange locations. In addition, ISE has opened Regional Administrative Offices (RAO) in Delhi, Calcutta, Nagpur and Mumbai to begin with. These administrative offices, besides acting as Regional Clearing Houses for the purpose of submission of documents, bank guarantees and such other communication of Regional Clearing Houses and Regional Administrative Offices, deemed necessary, to be exchanged with ISS. The list alongwith the addresses, contact persons and telephone / fax numbers are given at Annexure E.
13.
ISS has tied up with SHCIL so that the facility of stock borrowing can be availed of. The Registered Intermediaries could, if they so desire, avail this facility in case positions are left open as a result of not being able to square up positions due to failure in connectivity or system failure. (Deleted)
14.
The Registered Intermediaries shall be required to adhere to the settlement schedule specified by ISS for completing the daily and settlement obligations. This schedule, in the form of a Settlement Calendar would be intimated in advance. The general rule governing this schedule would be that pay-in of funds would be completed 24 hours before the scheduled time of NSE and delivery pay-in would be completed 24 hours before the scheduled time of NSE. In the case of margin payments ISS's Schedule would generally be 2 hours prior to the scheduled time specified by NSE for this purpose. The specific schedule would be made available to the Registered Intermediaries in the extranet server.
Normally funds and securities pay-out would be declared by ISS after 24 hours from the time the same are declared by NSE.
15.
In case there are any short deliveries, due to which auction of securities are conducted by NSE against ISS, none of the other Registered Intermediaries can participate in the auction session for that particular security, as per the current NSE rules.
In case of securities pay-in shortage, the defaulting seller would be debited with a valuation debit (which would be at the official closing price on NSE on the day). This debit would be effected on the day prior to the auction day for the relevant settlement on NSE. Incremental debit (if any) would be effected on the basis of the auction price / close-out price plus applicable penalties / fines etc., on the next day after the auction / close out is effected on NSE.
16.
Registered Intermediaries (RIs) may please note that all internal shortages in deliveries will be closed out at Highest traded rate in the Normal segment till the date of auction
17.
The margins applicable / leviable from the Registered Intermediaries of ISS, for trades done on NSE would be at a client level. Overruled by Circular 02-03/ISS/11890/MR dated March 31, 2003.
18.
Margins are required to be paid on T+1 day by 12 Noon for trading on NSE. If margins are not received by the scheduled day and time, ISS will have the right to square off all outstanding positions without prejudice, and further restrain the Registered Intermediary from trading thereafter until such time as he provides additional bank guarantee / cash towards margin requirements to the extent required. Overruled by Circular 02-03/ISS/11890/MR dated March 31, 2003
19.
If a Registered Intermediary defaults in fulfilling his margin or settlement pay-in obligation on schedule or he exceeds his prescribed trading / exposure limit, ISS could impose additional deposit requirement or can reduce his trading/exposure limit. ISS would charge interest @24% on all funds pay in defaults. If there are more than four instances of delayed funds pay-in in a month by any Registered Intermediary, the interest rate shall be 36% p.a. for all the defaults during the said month. (Inserted vide ISS circular ref. no. 04-05/ISS/18088/MR dated July 1, 2004)
20.
If a Registered Intermediary defaults in his margin / settlement pay-in or any other obligation imposed on him by ISS, as per the scheduled date and time, action could be initiated against him as give below:
a) All outstanding positions could be squared off
b) demand could be raised for additional deposit
c) could be restrained from further trading
d) could be declared a defaulter and not be allowed to trade any further. (This would also result in him being declared a defaulter on ISE). Further, if the defaulter is also a member of any other Stock Exchange, he would render himself liable for declaration as defaulter on such other Exchange too.
e) In case of such defaults the shortfalls in margin/settlement payin or other obligation would be met by accessing the Settlement Stabilization Fund created by ISS. If after declaration of a trader or dealer as defaulter on ISE, additional amount is required the deficit would be sought to be realized from the Settlement Guarantee Fund (SGF) of ISE.
ISS follows a system whereby if a Registered Intermediary of ISS does not clear his funds pay-in obligations relating to his transactions done on day T for 3 consecutive days after the scheduled ISS pay-in date, i.e. on T+1, T+2 or T+3, then ISS compulsorily sells the securities withheld by it against such funds pay-in default latest on T+4. In other words, for transactions done by a Registered Intermediary on Monday of week 1 (day T), in case he does not complete his funds pay-in obligation by Thursday of week 1 (i.e. T+3), then ISS compulsorily sells the securities withheld by it against the funds pay-in default of this Registered Intermediary on T+4 (i.e. Friday). For transactions done on day T, where the Registered Intermediary does not complete his funds pay-in by T+1, but squares up his outstanding positions in part or in full on T+2 or T+3, then ISS sells off on T+4 only the balance securities after considering the squaring up done by the Registered Intermediary on T+2 or T+3. In case the sale of securities does not suffice to meet the funds pay in default then the cash portion of the deposits will be adjusted immediately. In case of a further shortfall in the funds pay in obligation the Bank Guarantees available with ISS will be invoked after providing for a months time. If in spite of invoking the Bank Guarantee the default still persists then the matter will be referred to ISE Defaults Committee for necessary action. Where the Registered Intermediary has defaulted in his funds pay-in obligations to ISS in the manner described above, he shall be permitted to resume his trading on ISS only after he has cleared his funds pay-in amount and has made an additional cash deposit towards his trading capital, equivalent of 25% of the pay-in default amount (as on the ISS pay-in day) or Rs.50,000/-, whichever is higher. Similar additional trading deposit requirement would be applicable in cases where a Registered Intermediary defaults in his funds pay-in obligations for a shorter duration (i.e. less than 3 days from the scheduled pay-in date of ISS) on more than two occasions in a calendar month. In this case, the highest of the pay-in default amounts in the calendar month would be reckoned for the purposes of determining the quantum of additional cash deposit required to be made by the Registered Intermediaries.
In case of a funds pay in default on the day of ISS pay in the Registered Intermediary will not be allowed to trade the next day onwards till he clears his funds pay in obligation.
21.
In case of a default in payment of margins, a Registered Intermediary may be allowed only reduced trading limits or his positions may be squared off by ISS or he may be allowed to only square off his outstanding positions or such other restrictions may be imposed on him by ISS, as deemed fit.
22.
The computer requirements for the ISE and NSE segments have been specified in Annexure F, which would have to be procured by the Registered Intermediaries.
23.
The Registered Intermediaries shall render themselves liable for such fines, penalties or disciplinary action as may be prescribed from time to time, for tampering with this system or misusing this facility or for allowing unauthorized persons to operate this system and also for any consequential loss / damage arising therefrom due to the same.
24.
In case the Registered Intermediaries face technical problems with the network connectivity or the ISS hardware or software for operating on NSE through ISS, they may contact the Help Desk for further assistance. The list of such locations with contact numbers are provided at Annexure J. (Deleted)
If the Registered Intermediaries require their existing outstanding positions to be squared off or their pending orders to be deleted, they may fax the required instructions in writing in the format as enclosed in "ISS Form- 6" or send them in such other approved mode as which may be intimated to them, which would be entered by ISS in the market on behalf of the relevant sub-broker. These orders will be market orders only. This would be done without any prejudice or loss or execution commitment on the part of ISS.
25.
Registered Intermediaries may be suspended from further trading in case of violations of any of the Business Rules or as per the decision of the management of ISS or ISE, for such periods of time, as may be decided from time to time. If and when a Registered Intermediary is suspended by ISS or ISE, all his pending orders in the system would be deleted / returned to him. Further, the pay-out / delivery-out of any Registered Intermediary may be stopped / withheld in case of any violations or due to the decision of ISS or ISE management and the Registered Intermediary would be liable to bear all costs which may be attached to this decision.
26.
Each Trader / Dealer would be mandatorily required to obtain insurance cover through New India Assurance Co. for operations on ISS. ISS and ISE are presently firming up the policy cover, terms and conditions and also the premium payable, which would be intimated to the Traders / Dealers separately. The outline of the same is given at Annexure K. Deleted
27.
In case of any disputes or other such matters, ISS would provide its Registered Intermediaries and clients of the Registered Intermediaries, a forum for conciliation/ dispute resolution through the infrastructure of ISS/ ISE and/ or also through the available system of NSE. A platform/ mechanism would be available for the Registered Intermediaries and their clients for addressing grievances.
28.
The books of accounts, records and operations of the Registered Intermediaries would be inspected by ISS or ISE officials or any other entity to whom this authority is delegated, as per the instructions of ISS, ISE or NSE. The Registered Intermediaries would be required to help them in conducting this inspection and provide them with all relevant data and also access to their records for completing this work as per the requirements of ISS, ISE or NSE. Further, the Registered Intermediaries would be required to furnish such undertakings, indemnities or declarations as ISS, ISE or NSE may communicate from time to time.
29.
ISS would maintain an SSF, which would be in addition to a line of credit obtained from its Clearing Bank. The SSF or line of credit may be used to fund the margin or settlement mis-matches for a temporary period, for which the applicable bank charges would be recovered from the defaulting sub-broker. Registered Intermediaries would be liable to pay any penalty or fine, as may be determined by ISS or ISE, from time to time. Deleted
30.
The Registered Intermediaries may discontinue their trading rights through ISS with a minimum notice of one month. Their deposits maintained with ISS would be released after ISS determines that there are no further dues which are to be collected or no liabilities which may accrue due to the trades done by the Registered Intermediaries through ISS. Notwithstanding this, the release of their deposits would be subject to a minimum cooling period of one month and completion of necessary formalities.
31.
The Registered Intermediaries would be liable to the same disciplinary provisions as specified in the Business Rules of ISE. Modifications may be considered to meet the specific requirements of NSE. Excerpts of the present provisions are given at Annexure G.
32.
All communication would be sent to the Registered Intermediaries at their Registered Office or such other office as intimated to ISS as his communication address, in such mode as opted by ISS, by way of registered post, courier or in any electronic form to his TWS or such other communication mode (internet, etc.) This communication could be a download of obligations or circulars or any such other communication, which ISS is required to give to the sub-brokers. The Registered Intermediaries would be bound by such communication and this would be considered as valid communication.
33.
The Registered Intermediary is required to adhere to the Business Rules, circulars or such other communication, guidelines, rules, regulations specified by ISS, ISE, NSE or SEBI for the operations of a sub-broker. In case of any violation, he would be liable for such disciplinary action as specified by ISS, ISE, NSE or SEBI.
34.
A list showing names of the employees of ISS and ISE, their contact telephone / fax nos. is provided at Annexure M. (Deleted)
35.
A dedicated fax machine (no.: 022-7812794) has now been made available to the Registered Intermediaries for sending emergency requests related to their trading operations. The type of requests that could be faxed to this number are indicated below:
36.
Authorization for debiting Settlement account towards Additional Capital
Authorization for increasing trading and exposure limits
Authorization for entering orders by ISS staff in case of failure of Trader Workstation (TWS) of Registered Intermediaries
Submission of Client registration forms
Submission of details in ISS Form 5 for "Approval of additional user"
Intimation of early pay-in of securities and funds
Other important communication during trading hours
Deleted
37.
Registered Intermediaries interested in squaring up their open positions are cautioned not to wait until the last moments of the trading session for entering the squaring-up orders. They are advised against entering their squaring-up orders especially during the last 15 minutes of the trading session, as there may be possibility of delays/congestion in the ISS and NSE systems during this period, because of peak load conditions
38.
RIs are advised not to enter Good Till Cancelled (GTC) orders in the NSE/ISS system, as NSE has cautioned its members against the same. Results from a GTC order could be erratic/inconsistent. RIs may please take note of this warning and failure to do so will be at their cost and risk
39.
The Registered Intermediary shall ensure placing notice boards/plates of size of minimum 4'x 3', which shall contain details as prescribed in an indelible manner, should be prominently displayed in the main/branch office of the registered intermediary (where the trading terminal is located), as the case may be.
The Registered Intermediary shall ensure that the copy of registration certificate issued by SEBI is displayed at the dealing office. It should be visible to everybody and placed in the reception area of the dealing office.
Registered Intermediaries will enter orders on behalf of only those clients who have submitted data on any of the following details on PAN No.,/Passport No./Voter ID No/Driving license No /Ration card No. coupled with the frequently used bank account No and DP account No. of the client. All data pertaining to clients including the above will have to be uploaded into a facility made available in the extranet server before any order on behalf of the client is entered into the trading system.
A facility is available in FTP whereby an incorrect client code entered at the time of order entry may be rectified immediately at the end of the trading hours. Registered Intermediaries are advised to ensure that all incorrect client codes are reported for rectification using only this facility and it is done diligently so as to avoid problems at the time of reporting Unique Client Code details. It may be noted that this facility is available for corrections of client codes and not for changing codes from PRO to CLI or vice versa. Registered Intermediaries are advised to visit Home Page of FTP for details. (ISS circular ref. No. 03-04/ISS/15797/MR dated January 27, 2004)
40.
The Registered Intermediaries have to ensure compliance with the requirements relating to SEBI (Central Database of Market Participants) Regulations, 2003, as and when required by SEBI.
INDEX OF ANNEXURES
Annexure No. Contents
Annexure A Form for “User for Additional Terminals”
Annexure B Format of Bank Guarantee
Annexure C List of Clearing Bank locations & addresses
Annexure D Format of undertaking for Auto Inter Settlement Transfer
Annexure E List of locations of Regional Clearing Houses / Regional Administrative offices of ISS
Annexure F List of Hardware & Software requirements
Annexure G Provisions for Fines, Penalties & Disciplinary actions as per the current Business Rules of ISE
2006-07-19 22:47:51 · answer #1 · answered by JJ 4 · 5⤊ 2⤋
doing your homework last minute eh...
2006-07-19 20:47:15 · answer #2 · answered by ryanprague1 5 · 0⤊ 0⤋