SEBI Circular: Prevention of Unauthorized Trading

Dear Business Associate,

This is with reference to SEBI circular reference CIR/HO SEBI/HO/MIRSD/DOP1/CIR/P/2018/54 dated March 22, 2018, 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
g. Every Franchisee will receive a Order Request Form before placing any order from sitting clients.
h. Every Franchisee will maintain Visitor Register at their office.

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.

Download order request form ad attached on circular 
Order Request Form
Circular

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