 "National Stock Exchange")
National Stock Exchange (NSE) has directed brokers to ensure that their demat accounts used for holding clients securities will have to be compulsorily flagged as 'client margin account' by April 30.
The move is aimed at ensuring proper segregation of client securities and clear demarcation of demat accounts used for client purposes.
Trading members will be required to inform the exchange, the depository accounts flagged as 'client margin account' or 'client beneficiary account', NSE said.
Besides, they will have to provide details of the client bank accounts which will be periodically updated as and when there is any change.
The process of reporting the details to the exchange will be informed in due course.
"Members are hereby directed to ensure that all their demat accounts used for holding clients securities are compulsorily flagged as client margin account or client beneficiary account in the respective depositories (NSDL and CDSL) by April 30, 2016," the exchange said.
Every broker, holding client money, has a separate account at bank in the name of such broker member in the title of which the word "clients" appear.
Accordingly, stock brokers will have to ensure that the word 'Client Account' is mentioned/incorporated in the bank accounts maintained for holding client funds.
