|
No
|
Details
of contravention
|
Penalty
(Fine in rupees)
|
|
A -
Dealings with clients
|
|
a.
|
Client registration
documents
|
|
|
|
(i) non-execution
|
Rs 10000/-
per client
|
|
|
(ii)
inclusion of contravening clauses /
omission of material details
|
Rs 10000/-
|
|
|
(iii )
otherwise not in the prescribed format
|
Advice
|
|
b.
|
Constituent–wise
accounts for funds / securities not maintained
|
Rs 50000/-
|
|
c.
|
Bank and
demat account operations
|
|
|
|
(i) Separate
client bank or depository account not maintained
|
Rs 10000/-
|
|
|
(ii) Payin /
payout not received from / delivered to respective constituents
|
If number of
instances of violations exceed 2%, fine of Rs 10000/-
Otherwise,
advice
|
|
|
(iii)
Non-segregation of own and constituents’ funds or securities
|
If number of
instances of violations exceed 2%, fine of Rs 10000/-
Otherwise,
advice
|
|
|
(iv) Delay
in release of payout of funds
|
If number of
instances of violations exceed 2%, fine of Rs 10000/-
Otherwise,
advice
|
|
|
(v) Delayed
/ non-payment of dividend (delay in
excess of 3 months)
|
0.5 % of the
amount (Rs 10000/- if amount not known)
|
|
d.
|
Excess
brokerage collected
|
Member to be
advised to refund the excess brokerage collected, to the constituents and
Fine of the
excess brokerage or Rs 5000/- whichever is higher
|
|
e.
|
Use of
multiple codes for a constituent or proprietary account
|
Advice
|
|
f.
|
Contract
notes related violations
|
|
|
|
(i)
Issued
with material discrepancies (such as difference in trade price)
(ii)
Non
maintenance of duplicates / copies / proof of dispatch
|
Rs 10000/-
|
|
|
(iii) other contraventions
|
Advice
|
|
g.
|
Quarterly
statement of accounts for funds and /or securities not sent
Other contraventions
|
In excess of
2% of number of clients, fine of Rs 10000/-
Advice
|
|
h.
|
Cash
dealings with constituents
|
0.1% of the
value in excess of Rs 10 lakhs
Otherwise -
Advice
|
|
i.
|
(i) Non-disclosure
of proprietary trading to clients
(ii) Exclusive
e-mail id for investors' complaints not created / not displayed
|
Advice
|
|
j.
|
Transfer of
trades
|
In excess of
2% of number of orders executed, fine of
0.1% of value of trades transferred
|
|
|
|
|
|
B -
Dealings with intermediaries
|
|
a.
|
Dealings
with intermediaries
|
Rs 100000/-
per intermediary
Members to
be advised to ensure that the entities stopped dealing as intermediaries and
directed to withdraw the terminal(s), if any, allotted to such entities,
immediately.
In addition
to monetary fine, membership may also be suspended, depending upon the
gravity of the violation.
|
|
b.
|
Doing
business for / through other Members without prior approval of the Exchange
For dealing
with Members of other exchanges
|
Rs 10000/-
for dealing with member of same exchange.
Advice
|
|
c.
|
(i) Inspection
of branches not done
(ii) Sharing
of Brokerage / Commission, except as
permitted under the Bye-Laws of the Exchange
|
Advice
|
|
C -
Trading system & office management
|
|
a.
|
Operation of
terminals by persons other than an approved user / person
|
Advice
|
|
b.
|
Allowing
trading terminals to be operated by persons without approved certification.
|
Rs 1000/-
per terminal
|
|
c.
|
(i)
Unauthorised extension of TWS terminal
/ Non-upload of CTCL details to the
Exchange / Upload of CTCL details with
incorrect terminal location
|
Rs 50000/-
per terminal
In cases
where non-upload of details of more than 5 CTCL terminals are observed and
such CTCL terminals are operated by entities acting as intermediaries and /
or such terminals are used for carrying out illegal trading activity,
suspension of the membership may also be considered, depending upon the
gravity of the violation.
|
|
|
(ii) Errors
in upload of CTCL details
|
In excess of
5 terminals, Rs 5000/- per terminal
|
|
d.
|
Non-display
of Name Board, Notice Board or SEBI
registration certificate
|
Rs 10000/-
|
|
e.
|
Non-appointment
of compliance officer
|
Rs 10000/-
|
|
f.
|
Execution of
proprietary trades from locations other than those permitted by the Exchange
|
Rs 10000/-
|
|
g.
|
Evasion of
margin
|
0.3% of the
value of trades or Rs 25000/- whichever is higher
|
|
h.
|
Non-compliance
with the advertisement code of the Exchange
|
Rs 5000/-
|
|
i.
|
Non-compliance
with PMLA requirements
|
Rs 10000/-
|
|
j.
|
Books of
accounts, registers, records & documents not in prescribed format / not
maintained properly
|
Advice
|
|
k.
|
Follow-up
Inspection
|
|
|
|
Violations
observed in follow-up inspection also and in respect of which, fine has been levied.
|
Fines
prescribed for respective violations increased by 50%
|
|
|
|
|
|
D -
Margin reporting requirement
|
|
|
(i) If
percentage of factual wrong reporting of margin collected from constituents
to total margin reported as collected is :
|
|
|
Upto
5%
|
Warning
|
|
|
> 5% and upto 10%
|
0.5% of wrongly
reported amount
|
|
|
>
10% and upto 25%
|
2% of the
wrongly reported amount
|
|
|
>
25% and upto 50%
|
2% of the
wrongly reported amount and suspension from trading for 1 day
|
|
|
> 50%
|
2% of the
wrongly reported amount and suspension from trading for 5 days
|
|
|
(ii) if
percentage of (margin available but not properly accounted for / margin received
from third parties) to total margin reported as collected is :
|
|
|
Upto 5%
|
Advice
|
|
|
> 5% and upto 10%
|
0.5% of the
wrongly reported amount, subject to a maximum of Rs 25000/-
|
|
|
> 10% and upto 25%
|
0.75% of the
wrongly reported amount, subject to a maximum of Rs 50,000
|
|
|
> 25% and upto 50%
|
1% of the
wrongly reported amount, subject to a maximum of Rs 75,000/-
|
|
|
> 50%
|
1.25% of the
wrongly reported amount, subject to a maximum of Rs 1,00,000/-
|
