SECURITIES AND EXCHANGE BOARD OF INDIA
General Manager
Secondary Market Department
e-mail : pkb@sebi.gov.in
SMD/POLICY/Cir-19/02
August 22, 2002
The Executive Directors/ Managing Directors, All Stock Exchanges
Dear Sir/Madam,
Sub: Confidentiality of information
We have received representations from the FIIs about the leakage of trade data. The matter was discussed in the meeting of the Group on Risk Management Systems for the Equity Markets.
It has been decided that the stock exchanges would reiterate to their employees that they are bound by the code of conduct and to ensure that there is confidentiality of deals and that the trade data is not leaked.
Further, you are advised to draw attention of the members of your exchange by way of a ticker message and by way of circular reiterating that the confidentiality of the client information should be ensured as required by the client broker agreement. You are also advised to bring to the attention of the members, the provisions of clause (3) of Para B of Schedule II “Code of Conduct” of the SEBI (Stock Broker and Sub Broker) Regulations 1992 which state that “a stock-broker shall not disclose or discuss with any other person or make improper use of the details of personal investments and other information of a confidential nature of the client which he comes to know in his business relationship” and that violation of the code of conduct is liable to attract penalty under the Regulations.
You are advised to take necessary steps for the implementation of the above decisions.
Yours faithfully
P. K. BINDLISH
