Due to the increasing number of complaints and issues from the clients, we have put the Do’s required to be followed mandatorily by all the Authorised persons as part of the company’s AP compliances and policy:-
DO’s for all the APs-
- All the APs shall have the requisite infrastructure as provided in the AP policy and must comply with all the necessary rules and regulations as per SEBI (Stock Broker and Sub-brokers) Regulations, 1992 and as described in AP policy on a timely basis.
- AP shall assist the trading member/ stock broker in the inspection by providing books of accounts, invoices, recordings (Pre-trade & Post-trade), and other data required from time to time.
- AP shall comply with all the AP policies and compliances to avoid hold in brokerages so that the same can be released on time.
The major compliances to be followed are as under:-
1. | AP shall maintain pre-trade and post- trade confirmation recordings through CRM all the time and its mandatory |
2. | SEBI, AP & NISM registration certificate, Company Details, Investor Grievance Reddressal mechanism, etc. should be displayed in the office premises of AP and made clearly visible. |
3. | Mandatory opting of voice panel CRM before applying for CTCL/ Terminal id. |
4. | Maintenance of visiting and complaint register at the office premises. |
5. | AP should operate from the address as provided to the exchange at the time of registration and if in case of any change in address, he/ she should intimate to the compliance department. |
6. | The terminal id should be operated by an approved user (NISM holder) only as per the data available with the exchange. |
- AP shall mandatorily opt for Voice panel CRM for hassle-free maintenance of pre-trade and post-trade records. Through this, the AP shall not be required to submit the recordings separately to HO or branch as the same will be automatically available on the server. If in any case, CRM is not reachable or the server is down, then if the trades are executed via mobile, then AP shall mandatory have other call recording applications installed on the phone and the records for the same should be submitted to HO or branch within due time. No trades executed via an offline trading platform shall be done without the client’s consent through a recorded line.
- In case of auto square-off of positions in the intraday market, the AP should make sure that post-trade confirmations are made to the client at end of the day for all the open positions auto-squared off in his account, if traded offline.
- While executing a trade in the client’s account, the dealer shall never give any profit commitment on any trade nor shall the dealer provide any fixed amount or percentage of return on any trade.
- The dealer shall be well aware of the category of client and also shall ask the client in which segment he/ she is interested to trade.
- The dealer shall give a brief about the trades in all segments along with the risk involved in each segment. Also, the client shall be made aware of the quantities purchased and the brokerage charged in each segment with a short example at the time of account opening itself.
- If the client is new to the stock market or has initially started trading then the dealer shall make sure that heavy lots are not traded and the dealer shall trade on the client’s approval and consent only, after explaining to him complete details of the trade and other charges applicable.
- AP shall always ensure that the clients are not misguided and cheated in the name of higher profits/ returns in any segment, for any trade/ contract.
- AP shall clearly explain the brokerage chargeable in all segments along with other applicable charges on demat & trading account at the time of account opening itself on a recorded line.
- Last but not least, the AP should execute trades in a client account in an ethical way (i.e no heavy volumes in options, not to trade in very small premium contracts) and not just with the purpose to earn brokerage.
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