MANU/SSMD/0044/2021
Ministry : Securities and Exchange Board of India
Department/Board : Market Intermediaries Regulation and Supervision Department
Circular No. : SEBI/HO/MIRSD/DOP/P/CIR/2021/653
Date : 28.10.2021
Notification/ Circulars Referred : Circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 MANU/SDEP/0004/2016;CIR/HO/MIRSD/MIRSD2/CIR/P/2017/64 dated June 22, 2017 MANU/SDEP/0006/2017;Circular no. DOR.No.BP.BC.30/21.04.048/2020-21 dated December 14, 2020 MANU/RMIC/0168/2020
Citing Reference:
Circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 MANU/SDEP/0004/2016 Referred
CIR/HO/MIRSD/MIRSD2/CIR/P/2017/64 dated June 22, 2017 MANU/SDEP/0006/2017 Referred
Circular no. DOR.No.BP.BC.30/21.04.048/2020-21 dated December 14, 2020 MANU/RMIC/0168/2020 Referred
To,
All Recognized Stock Exchanges
Stock Brokers through Recognized Stock Exchanges
Dear Sir/Madam,
Maintenance of current accounts in multiple banks by Stock Brokers
1. SEBI vide circular no. SMD/SED/CIR/93/23321 dated November 18, 1993 on "Regulation of Transactions between Clients and Brokers" mandated that all the brokers shall keep the money of the clients in a separate account and their own money in a separate account. Further, SEBI vide circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 on "Enhanced Supervision of Stock Broker/Depository Participants" and CIR/HO/MIRSD/MIRSD2/CIR/P/2017/64 dated June 22, 2017 on "Clarification to Enhanced Supervision Circular" provided guidelines on uniform nomenclature to be followed by Stock Brokers for naming and tagging of bank accounts according to which Bank account(s) which hold clients funds shall be named as "Name of Stock Broker -Client Account", Bank account(s) held for the purpose of settlement would be named as "Name of Stock Broker - Settlement Account" and that naming of proprietary bank account is voluntary and all accounts which are not named as Client/Settlement account would be deemed to be proprietary accounts.