New Delhi : Stock exchanges have now got time till July 2017 to put in place the requisite mechanism for monitoring of clients’ funds handled by stock brokers, with markets regulator Sebi extending the deadline in this regard.
In September, the markets regulator had asked the bourses to comply with these regulations within three months — a deadline which is ending this month. This mechanism is not applicable for stock brokers who are carrying out only proprietary trading or only trading for institutional clients.
“Based on the alerts generated, stock exchanges shall, inter-alia, seek clarifications, carry out inspections and initiate appropriate actions to protect the clients’ funds from being misused. Stock exchanges shall also maintain records of such clarifications sought and details of such inspections,” Sebi said in a circular.
