On 22-5-2024, the Securities and Exchange Board of India (‘SEBI’) issued a Master Circular for Stock Brokers. The provisions came into force on 22-5-2024.
Key Points:
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In addition to the directions/ instructions laid down in the circulars contained in the Master Circular dated 17-5-2023 which laid down the extent to which it related to Stock Brokers which stood rescinded, this Master Circular further lays down the directions/ instructions contained in the 12 Circulars listed in the Appendix which will stand rescinded, to the extent they relate to the Stock Brokers.
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Inspite of the rescission:
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Anything done/ action taken/ purported to have been done/ taken under the rescinded circulars prior to such rescission, will be deemed to have been done/ taken under the corresponding provisions of this Master Circular.
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Any application made to SEBI under the rescinded circulars, prior to such rescission, and pending before it will be deemed to have been made under the corresponding provisions of this Master Circular.
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The previous operation of the rescinded circulars will remain unaffected as if the rescinded circulars have never been rescinded.
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SEBI Circulars that are rescinded through this Master Circular:
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Circular dated- 25-4-2023- Bank Guarantees created out of clients’ fund;
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Circular dated 19-5-2023- Risk disclosure with respect to trading by individual traders in Equity Futures & Options Segment;
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Circular dated 2-6-2023- Transactions in Corporate Bonds through Request for Quote platform by Stock brokers;
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Circular dated 21-6-2023- Trading Preferences by Clients;
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Circular dated 1-8-2023- Trading Preferences by Clients- Applicability for commodity derivatives;
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Circular dated 26-9-2023- Extension of timeline
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For nomination in eligible demat accounts and;
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For submission of PAN, Nomination and KYC details by physical security holders; and voluntary nomination for trading accounts;
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Circular dated 13-11-2023- Most Important Terms and Conditions;
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Circular dated 12-12-2023- Upstreaming of clients’ funds by Stock Brokers/ Clearing Members to Clearing Corporations;
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Circular dated 28-12-2023- Settlement of Running Account of Clients’ Funds lying with Trading Member;
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Circular dated 12-1-2024- Ease of doing business- Changes in reporting;
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Circular dated 12-1-2024- Ease of Doing Investments by Investors Facility of voluntary freezing/ blocking of Trading Accounts by Clients;
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Circular dated 11-3-2024- Measures to instill trust in securities market- Expanding the framework of Qualified Stock Brokers to more stock brokers.
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