Image Source : PTI SEBI clarifies on the format for looking for purchasers’ buying and selling preferences
Capital market regulator SEBI on Tuesday clarified that the brand new format for looking for purchasers’ buying and selling preferences prescribed by it final month is not going to be relevant to members registered solely 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) mentioned in a round.
Requirement underneath 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 buying and selling on the involved trade and the signature of the consumer.
In case of permitting a consumer for buying and selling 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 consumer 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 cut-off date, it’s hereby clarified that.
format of ‘Trading Preferences’ as laid out in SEBI round dated June 21, 2023, shall not be made relevant to members registered solely with commodity derivatives exchanges,” it added.
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Also, it clarified that an opting-out facility must be supplied to new in addition to present purchasers, and unfavourable consent must be obtained individually from purchasers in writing.
Stock brokers might be mandated to keep up data of such written unfavourable consent supplied by the purchasers for not less than 5 years.
In June, SEBI got here out with a regular format for looking for the buying and selling preferences of purchasers to be supplied to their respective inventory brokers for a similar product in numerous exchanges.
(With PTI inputs)
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Source: www.indiatvnews.com
