The National Stock Exchange of India Limited vide its notification dated 21st December 2020 has formulated an indicative penalty structure for Non closure of Client Collateral / Client Margin Trading Securities demat accounts.
SEBI in its earlier notification has directed the trading members to close all existing demat accounts tagged as ‘Client Margin/ Collateral’ and Client Margin Trading Securities demat accounts by August 31, 2020 however those who failed to do so shall be liable to pay penalty as specified in this notification.
For Non-closure of existing Client Margin/ Collateral account and Client Margin Trading Securities account shall attract a penalty of Rs. 50,000/- per account (where Members are unable to provide reasonable explanation). Member to be disabled in all Exchanges in case account is not closed within one month of levy of penalty.
Further for non-reporting of the closure of existing Demat accounts to Exchange/s within one week from closure in the prescribed format shall be liable to pay a penalty of Rs. 5,000/- per annum and warning to be issued to Member and direction to report such details to the Exchange.
