Sebi tightens broker norms for commodity derivatives
ET Bureau|
Updated: Sep 26, 2017, 07.56 PM IST
Mumbai: Sebi has asked brokers to execute trades of clients in commodity derivatives only after keeping evidence of the client placing such order.
The evidence could be in the form on physical record written & signed by client,telephone recording,email from authorized email id,log for internet transactions,record of short message service and any other legally verifiable record, the regulator said on Tuesday.
"When dispute arises, the burden of proof will be on the broker to produce the above records for the disputed trades,"Sebi said.
"Wherever the order instructions are received from clients through the telephone,the stock broker shall mandatorily use telephone recording system to record the instructions and maintain telephone recordings as part of its records," it added.
The new rule would be effective from January 1, 2018.
The evidence could be in the form on physical record written & signed by client,telephone recording,email from authorized email id,log for internet transactions,record of short message service and any other legally verifiable record, the regulator said on Tuesday.
"When dispute arises, the burden of proof will be on the broker to produce the above records for the disputed trades,"Sebi said.
"Wherever the order instructions are received from clients through the telephone,the stock broker shall mandatorily use telephone recording system to record the instructions and maintain telephone recordings as part of its records," it added.
The new rule would be effective from January 1, 2018.
