NATIONAL
STOCK EXCHANGE OF INDIA LIMITED
INVESTIGATION
DEPARTMENT
CIRCULAR
Circular No. NSE/INVG/PRE/2003/16
Download No. NSE/INVG/2003/4590
Dear Members,
Sub: Sub:
Disclosure of proprietary trading by broker to client
To all Members,
In pursuance of SEBI
Circular no: SEBI/MRD/SE/Cir-42/2003 dated November 19, 2003, with a view to
increase the transparency in the dealings between the trading member and their
clients, all trading members are required to disclose to his clients whether
they do client based business or proprietary trading as well. In connection
with the same, the trading members may take note of the following
:
1.
The trading member
shall disclose the aforesaid information to his existing clients within a
period of one month from the date of this circular.
2.
Further, the trading
member shall disclose this information upfront to his new clients at the time
of entering into the Know Your Client agreement.
3.
In case of a trading
member who at present does not trade on proprietary account, chooses to do so
at a later date, he shall be required to disclose this to his clients before
carrying out any proprietary trading.
Members may please note
that non-compliance of this requirement by any member shall be treated as a
violation.
The provisions of this
circular shall come into effect from
Yours faithfully,
TapasDas
(Manager)