You are here: Home » Markets » News
Business Standard

Devise framework for non-reporting margins fines: Sebi to stock exchanges

The move is intended "to rationalise and bring uniformity in the manner of imposition of fine for 'false or incorrect' reporting of margin and 'non-reporting' of margin", Sebi said in a circular

Press Trust of India  |  New Delhi 

Sebi

regulator on Thursday asked clearing corporations and to devise a standard framework for levying fine on trading members for non-reporting or misreporting of margins collected from clients.

The move is intended "to rationalise and bring uniformity in the manner of imposition of fine for 'false or incorrect' reporting of margin and 'non-reporting' of margin", said in a circular.

The exchanges and clearing corporations in all segments are required to devise such a framework in consultation with one another, it added.

For levying the penalty, the principle of 'proportionality' shall be considered and the fine shall be charged "based on the materiality of non-compliance done by the member which may include factors such as number of instances, repeated violations, etc," said.

Also, the amount of fine to be imposed on the trading member "may extend to 100 per cent of such false/incorrectly/non reported amount of margin and/or suspension of trading for appropriate number of days", the regulator said.

The circular will become effective from September 1, Sebi said.

It noted that it was brought to the regulator's notice by the that "there is need to harmonise the penalties" specified by Sebi through its earlier circulars issued in August 2011 and September 2016.

First Published: Thu, August 01 2019. 17:25 IST
RECOMMENDED FOR YOU