Bse Formulates Rules For Remesiers

The Bombay Stock Exchange (BSE) has finalised norms for the remesier to operate at the exchange. The remesier, an agent of the broker, is primarily involved in getting business in securities on a commission basis. The exchange has set out the following terms for the appointment and registration of a remesier:

* A remesier will pay a one-time, non-refundable registration fee of Rs 5,000 at the time of every fresh registration;

* He can be registered with only one exchange member-broker. His appointment would have to be first approved by the governing board of the exchange. However, there would be no limit on the number of remesiers appointed by a member;

 

* He will not make bargains in his own name or on behalf of his employer or any other member when on the floor of the exchange. A remesier, acting in violation of this provision, will be suspended or expelled by the board;

* A register will be maintained by the exchange detailing the names of all remesiers, dates of their appointment and discharge and names of the employing members. The register will be open to inspection by the exchange president or the governing board;

* A remesier should not be an employee of any individual or any organisation;

* He shall not act as a sub-broker anywhere as long as he continues to operate as a remesier;

* Any dispute between the member and the remesier relating to or arising out of any transaction done on the exchange will be subject to arbitration as provided in the rules, bye-laws and regulations of the exchange;

* A member may, with special consent from the governing board, employ an ex-member as a remesier.

According to the BSE top brass, with screen-based trading and computerisation of brokers' back-offices becoming a reality, manual work has been reduced over the past two years.

The constraints which compelled members to refuse more clients did not exist anymore. Investors have sought to deal directly with brokers at the BSE, and with brokerage rates coming down, brokers need more business to break even in a competitive industry, sources said.

The move to revive the activities of remesiers at the BSE has come about as member- brokers said the dealing with unregistered sub-brokers was risky, and the registration process would involve a lengthy exercise.

BSE president has also expressed faith in the development of a chain of remesiers which will go a long way in serving a larger section of investors directly.