Sebi asks brokers to keep clients' call records for 3 yrs

Markets regulator Sebi today asked brokers to keep records of telephonic communications with clients for three years in a bid to prevent unauthorised trading activities.
Earlier, no time period was specified for call records by the Securities and Exchange Board of India (Sebi).
The new decision has been taken after the regulator received representations from brokers and their associations expressing operational difficulties caused to them.
In view of operational difficulties faced by brokers, Sebi has decided that brokers will have to maintain the call records "for a minimum period for which the arbitration accepts investor complaints as notified from time to time, currently three years".

However, in cases where dispute has been raised, such records would be kept till final resolution of the dispute, the regulator said in a circular.
If Sebi desires that specific records be preserved then such records will be kept till further intimation by the regulator.

The evidence could be physical record written and signed by client, telephone recording, e-mail from authorised ID, log for internet transactions, record of SMS messages or any other legally verifiable record.
Sebi reiterated that the onus will be on brokers to produce proof of clients activities in the event of any dispute arising out of a stock trade.

However, for exceptional cases such as technical failure, where broker fails to produce order placing evidences, then the broker will have to justify it with reasons for the same and depending upon merit and other appropriate evidences like post trade confirmation by client in respect of disputed trade will be considered, the regulator noted.