NSE has launched Facility of voluntary freezing/ blocking of Trading Accounts by Clients

NSE vide circular dated January 16, 2024 has launched Facility of voluntary freezing/ blocking of Trading Accounts by Clients. SEBI decided that the framework for Trading Members to provide the facility of voluntary freezing/blocking the online access of the trading account to their clients on account of suspicious activities shall be laid down on or before April 01, 2024, by the ISF, under the aegis of stock exchanges, in consultation with SEBI and the same shall, inter-alia, contain necessary guidelines with respect to the following:

1. Detailed policy for voluntary freezing/ blocking the online access of the trading account of the client including modes through which a client can request/communicate to the Trading Member for voluntarily blocking the trading accounts and issuing of acknowledgement to the clients on receipt of message and time period within which the request shall be processed and the trading account shall be frozen/blocked.
2. Action to be taken by the Trading Member pursuant to the receipt of request for freezing/blocking of the trading account;
3. Process for re-enabling the client for trading/transfers;4.4.Intimation to be provided by the trading member to the clients w.r.t. introduction of the facility to block the trading accounts.