NSE Investigation department has issued a circular on Unusual/Abnormal Trading Activities with Download Ref.No.: NSE/INVG/20934 & dated June 5, 2012 and Circular Ref.No.: 751/2012 and said circular is as appended below which is addressed to all NSE members.
All NSE Members
Sub : Observation / Caution letters based on trading pattern of trading members and their
client/s.
With a view to identify and alert the market participants viz., Members, and their Clients at an early stage about unusual/abnormal activity, the Exchanges have decided jointly with SEBI to issue observation/caution letters to Members/clients where prima facie, unusual/abnormal activities are observed by the Exchange. This practice will start with immediate effect.
Trading members may note that as per the Code of Conduct prescribed in SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 a stock broker is required to act with due skill, care and diligence in the conduct of all his business. In continuation to the same, upon receipt of observation/caution letter from the Exchange, they will take adequate measures to ensure that there is no continuation of or undertaking of similar trading activity by them or their clients.
Trading members are advised to take note of the same and also bring the content of this notice to their clients. For any clarifications, members are advised to contact Ms. Kalyani PLS or Mr. Bharat Patil on 022-2659 8366/ 8193.
For and on behalf of
National Stock Exchange of India Limited
Avinash Kharkar
Chief Manager
