BSE: Clarifications on submission of client level holding statement, cash and cash equivalent balances and bank account balances by members

NOTICE

Notice No.

20220903-1

Date of notice

Sep 03, 2022

Category

Compliance

Segment

General

Matter

Clarifications on submission of client-level holding statement, cash and cash equivalent balances, and bank account balances by members

Attachments

Appendix A.pdf;

Contents

Members’ attention is drawn to Exchange Notices 20200731-25 dated July 31, 2020, 20210927-48 dated September 27, 2021 on incorrect submission of client level holding statement, cash balances and cash equivalents and bank account balances by members in which members were asked to ensure the correct reporting of data to the above-mentioned submissions to Exchange.

As noted in Exchange Notice 20200731-25 dated July 31, 2020, Exchange/SEBI, based on client-level holding statement, cash and cash equivalent balances, and bank account balances by members, generated fund and security alerts periodically. Based on submissions made by Members to date, it has come to the attention of the Exchange that some Members are still incorrectly reporting client level holding statement, cash and cash equivalents balances cash flow and bank account balances on the Stock Exchange. One of the common reasons observed for incorrect reporting is incorrect reporting of client PAN in weekly submissions. It has been observed that the PANs uploaded by some members for their clients in the aforementioned weekly submissions are different from the client PANs uploaded to the Exchange UCC database. Also, the PAN mapped to the customer demat account in the custodian records is different from the customer PAN uploaded to the Exchange UCC database. In view of the same, members are strictly advised to ensure that the PAN of all clients is the same at all times in the UCC database of exchanges, custodian records and submissions made by members to Exchange. Any non-compliance found in this regard will be considered very seriously by Exchange.<_o3a_p>

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In addition, Empty Exchange Notice 20220209-5 dated February 09, 2022 provided clarification on the reporting of securities in clients’ demat accounts under the block mechanism. However, it has been observed that some members still incorrectly report the weekly holding statement to the Exchange by including the securities available on the clients’ demat account under the block mechanism also in their weekly holding statement. In view of this, members are again reminded that members should not include securities in client deposit accounts under the end-of-day block mechanism in the weekly holding statement uploaded to the Exchange.<_o3a_p>

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Members’ attention is also drawn to Exchange Notice 20190412-43 dated April 12, 2019, in which it was reiterated that client securities that have been transferred to the Clearing Member must be reported in the weekly submission of the declaration of detention on the Stock Exchange. However, based on reports made by Trading Members, it has been observed that some Trading Members do not report their clients’ securities available to the Clearing Member at the end of the day due to the settlement/payment obligation. in the weekly holding record submitted exchange. In view of the same, Members are again advised to ensure that the securities of Clients being with the Clearing Member at the end of the day are declared in their Weekly Holding Statement to the Exchange. Members must specify the clearing member’s demat account number and mention “CM COLL” in the “Member Account Type” field. The quantity of these securities, if any, must be entered in the “Free Balance (Qty)” field. In addition, Members are also advised to note that securities for which payment is made to Clearing Companies and which are not available from the Clearing Member at the end of the day, should not be reported in the Holding Statement. weekly submitted to Exchange. <_o3a_p>

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All members are responsible for ensuring the correct submission of data to the client level holding record, cash and cash equivalent balances and bank account balances at the Exchange. Any non-compliance in this regard will be considered seriously by the Exchange and disciplinary action, including the disabling of trading terminals, as set out in Exchange Notice 20210927-48 dated September 27, 2021 will apply. The consolidated list of incorrect submission reasons is attached as Annex A.<_o3a_p>

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All members are invited to take note of the above and to comply with it.<_o3a_p>

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In case of clarifications, members can contact below:<_o3a_p>

022-2272 8435/5785 or [email protected]<_o3a_p>

For and on behalf of BSE Ltd. <_o3a_p>

Hiteshkumar Desai Sandeep Sharma<_o3a_p>

Managing Director Deputy Managing Director<_o3a_p>

Broker Supervision Broker Supervision

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