Circular No. CIR/MIRSD/15/2011 , Dated- August 02, 2011
These guidelines are applicable to equity – cash and derivative – segments of the stock exchanges.
B. Uploading of mobile number and E-mail address by stock brokers
i. Stock exchanges shall provide a platform to stock brokers to upload the details of their clients, preferably, in sync with the UCC updation module.
ii. Stock brokers shall upload the details of clients, such as, name, mobile number, address for correspondence and E-mail address.
iii. Stock brokers shall ensure that the mobile numbers/E-mail addresses of their employees/sub-brokers/remisiers/authorized persons are not uploaded on behalf of clients.
iv. Stock Brokers shall ensure that separate mobile number/E-mail address is uploaded for each client. However, under exceptional circumstances, the stock broker may, at the specific written request of a client, upload the same mobile number/E-mail address for more than one client provided such clients belong to one family. ‘Family’ for this purpose would mean self, spouse, dependent children and dependent parents.
C. Verification by the stock exchanges
After uploading of details by the stock brokers, the stock exchanges shall take necessary steps to verify the details by any mode as considered appropriate by them which may include the following:
a. By way of sending SMS and E-mail directly to the investors at the numbers/E-mail address uploaded by the stock brokers.
b. By way of sending letters to the address of the investors uploaded by the stock brokers.
D. Sending of alerts by the stock exchanges
Upon receipt of confirmation from the investors, the stock exchanges shall commence sending the transaction details generated based on investors’ Permanent Account Number, directly to them.
E. Handling of discrepancies, if any. If any discrepancy is observed by the stock exchanges in the details uploaded by the stock brokers including non-confirmation by investors, bounced E-mails, undelivered SMS/letters, etc., the stock exchanges shall inform the respective stock broker.
F. Meeting out the expenses for providing SMS and E-mail alerts The stock exchanges may use the amount set aside from the listing fees for providing services to the investing public, as provided vide SEBI communication dated SE/10118 dated October 12, 1992, to meet the expenses for providing this facility.
The stock exchanges shall put in place necessary infrastructure and implement the SMS and E-mail alert facility at the earliest and not later than four months from the date of this circular.
3. Stock exchanges are advised to :
e. publicize widely the availability of this facility for the awareness of the investors.
4. This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and shall come into effect from the date of this Circular.
5. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework” and “Circulars”.
V S Sundaresan
Chief General Manager