NSE initiates strict action against misuse of client funds by trading members


NSE vide circular dated June 13, 2023 has informed all Trading Members that in the recent past, the Exchange has observed instances of misuse of client funds during its inspections as well as in the alerts generated under offsite supervision. Following administrative actions shall be taken by the Exchange against such misuse:

  1. The proprietary deposits/collaterals of the Trading Member available with NCL shall be blocked to the extent of the shortfall/misuse amount or Rs.10 crores, whichever is lower.
  2. In case misuse is observed in all principles, amount equivalent to aggregate amount of all principles, shall be blocked.
  3. Proprietary deposits/collaterals shall be blocked after 2 trading days from the date of communication of the direction regarding the blocking of such deposits/collaterals to the Trading Member.
  4. Such deposits/collateralsshall be blocked for a period of 10 days.
  5. No exposure will be granted to the Trading member on such deposits/collaterals.

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