SEBI Circular: Prevention of Unauthorised Trading by Stock Brokers

Dear Business Associate,

This is with reference to SEBI circular reference CIR/HO/MIRSD/MIRSD2/CIR/P/2017/108 dated September 26, 2017, it has now been decided that all brokers shall execute trades of clients only after keeping evidence of the client placing such order, it could be, inter alia, in the form of:
a. Physical record written & signed by client (Sample copy is attached)
b.Telephone recording,
c.Email from authorized email id,
d.Log for internet transactions,
e.Record of SMS messages,
f.Any other legally verifiable record

When dispute arises, the burden of proof will be on you to produce the above records for the disputed trades.
Hence you are requested to have evidence of the client placing order.
This circular shall be effective with effect from April 01 2018.
Further we hereby request you to install voice logger system at office on or before March 31, 2018 if you have not installed the same.

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