On 13-11-2023, the Securities and Exchange Board of India (‘SEBI’) revised the Master Circular dated 17-5-2023 introducing a standard “Most Important Terms and Conditions” (‘MITC’) which will be given by the brokers to the clients to bring into focus critical aspects of broker-client relationship and for ease of understanding of the clients.
Key Points:
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Brokers’ Industry Standard Forum (‘ISF’) will have to publish the form, nature of communication, documentation and detailed standards for implementation of MITC on or before 1-1-2024.
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The date of implementation and compliance for the new onboarding clients will be 1-4-2024.
Note: The Master Circular is revised as the following uniform documents for formalizing the broker-client relationship are voluminous and investors may lose focus on critical aspects:
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Account opening form;
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Rights and obligations;
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Risk disclosure documents;
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Guidance notes;
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Policies and procedures;
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Tariff sheet.
