Notices

Notice No

20130604-20

Notice Date

04 Jun 2013

Category

Compliance

Segment

General

Subject

Observation / Caution letters
based on trading pattern of trading members and their
client/s.

Content

To

All Trading Members of the
Exchange

Sub:  Observation / Caution
letters based on trading pattern of trading members and their
client/s.

The attention of the trading members of the
Exchange is drawn to the Notice No. 20120605-30 dated June 5, 2012
in the captioned matter. As informed, with a view to identify and
alert the market participants viz., Members, and their Clients at an
early stage about unusual/abnormal activity, the Exchanges had
decided jointly with SEBI to issue observation/caution letters to
Members/clients where prima facie, unusual/abnormal activities are
observed by the Exchange.

Also, as informed earlier, as per the Code of
Conduct prescribed in SEBI (Stock Brokers and Sub-Brokers)
Regulations, 1992 a stock broker is required to act with due skill,
care and diligence in the conduct of all his business and
accordingly members were asked to take adequate measures to ensure
that there was no continuation of or undertaking of similar trading
activity by them or their clients, upon receipt of
observation/caution letter from the
Exchange.

The trading members are once again advised to
take adequate measures to ensure that similar trading activity is
not continued by/through them post issuance of Observation/Caution
letters by Exchange. Further, such client/s may be advised to ensure
that similar trading activity is not continued through different
trading member/s. Continuance of unusual/abnormal activity by the
member/clients may attract appropriate disciplinary/regulatory
action against the trading member/ client in co-ordination with
SEBI.

The trading members are advised to take note
of the aforesaid contents and also bring the same to the notice of
their clients.

Soundararajan V
Usha Sharma

Sr. Gen. Manager
Dy. Gen. Manager

Surveillance & Supervision
Surveillance & Supervision

June
4, 2013