Capital market regulator SEBIĀ on Tuesday clarified that the brand new format for seeking shoppers’ trading preferences prescribed by it final month is not going to be relevant to members registered completely with commodity derivatives exchanges.
Such members will use the format as prescribed by the erstwhile Forward Markets Commission (FMC) in February 2015, the Securities and Exchange Board of India (SEBI) stated in a round.
Requirement below new format
Under the format, the member should specify the names of the exchanges the place the member has membership, the date of consent for trading on the involved trade and the signature of the shopper.
In case of permitting a shopper for trading on every other trade at a later date, which isn’t chosen now, a separate consent letter is required to be obtained by the member from the shopper and to be stored as an enclosure with this doc.
“In view of the truth that within the case of commodity derivatives exchanges, the overlap of traded commodities between them is low at this time limit, it’s hereby clarified that.
format of ‘Trading Preferences’ as laid out in SEBIĀ round dated June 21, 2023, shall not be made relevant to members registered completely with commodity derivatives exchanges,” it added.
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Also, it clarified that an opting-out facility must be offered to new in addition to current shoppers, and damaging consent must be obtained individually from shoppers in writing.
Stock brokers might be mandated to take care of data of such written damaging consent offered by the shoppers for a minimum of 5 years.
In June, SEBIĀ got here out with a normal format for seeking the trading preferences of shoppers to be offered to their respective inventory brokers for the identical product in numerous exchanges.
(With PTI inputs)
