NSE Circular on : Guidelines for maintaining bank accounts by the Trading Members
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Date |
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Subject |
Topic |
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15-03-2022 |
NSE |
Guidelines for maintaining bank accounts by the Trading Members |
Compliance Bank Account |
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Highlights of NSE Circular dated March 15, 2022 Guidelines for maintaining bank accounts by the Trading Members Further to NSE circular NSE/INSP/51235 dated February 03, 2022, on Guidelines for maintaining bank accounts by the trading members wherein it was mentioned that in case, members have maintained client bank accounts and/or own bank account with other than clearing banks or scheduled banks respectively, then members were required to close such accounts by March 15, 2022, NSE has now revised this provision and specified that
Members shall maintain client bank accounts with followings banks only: i. Banks designated as Clearing Banks by any of the Clearing Corporations from time to time ii. Banks which are not designated as Clearing Banks however empaneled for the purpose of issuance of BGs and FDRs by any of the Clearing Corporations from time to time iii. Payment Banks licensed under Banking Regulation Act, 1949 Payment Banks licensed under Banking Regulation Act, 1949.SEBI, vide Circular dated February 24, 2022 has further extended the timeline to comply with the provisions of Paragraphs 4 and 5 of SEBI Circular no. SEBI/HO/MRD2_DCAP/CIR/2021/0598 dated July 20, 2021 to May 02, 2022
However, members can maintain the client banks accounts with banks stated above in point (ii) & (iii) only if member has obtained written confirmation from such bank(s) that Bank shall submit day wise account number wise end of day clear running balances and/or information/statement of all bank accounts maintained with such bank(s) to Exchange on daily/weekly basis as may be required by the Exchange. Members shall take confirmation from such bank(s) by April 15, 2022, for the existing bank accounts maintained by them and shall submit the same to Exchange. Further, members shall submit updated/ fresh confirmation to the Exchange within seven working days of opening of any new client bank account. The format of the confirmation is attached as Annexure-A to this Circular
NSE further stated that an online facility will be provided to all members to submit the said confirmation. The system for submission of such confirmation through the inspection module of the member portal shall be informed to the members through a separate circular, in due course
Further, member shall maintain own/proprietary account with Scheduled Banks or Payment Banks licensed under Banking Regulation Act, 1949 only.
In case, members have maintained client bank accounts with banks other than the banks mentioned above in point (i),(ii),(iii) and/or have not taken confirmation from banks stated above in point (ii),(iii) for the bank accounts maintained with them and/or have maintained own bank accounts with banks other than scheduled banks or payment banks mentioned above in point (iii), then members are directed to close such accounts by April 15, 2022.
Members are also requested to note that, as per the requirement of SEBI circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 “In case of closure of any of the reported bank accounts, the same shall be communicated to the Stock Exchanges within one week of its closure
NSE Circular no. NSE/INSP/51639 dated March 15, 2022 is enclosed herewith for your ready reference
In case of any clarification or assistance required in implementation of this circular you may contact VANDANA VANIA (SecMark Consultancy Ltd.)– van...@secmark.in / 9223303460 SHARDUL SHAH - shard...@secmark.in/ 9869265949 / 9653415968 |
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