Sr. No. |
Type of Trading Activities |
Definition / Meaning |
Penalty Amount (Rs.) |
Supporting Circular |
1 |
Wash / Self Trade |
Same Client(s)/ Group of Client(s) on both sides of the transaction. (I.e. same trade number on both the buy and sell side at a Trading Member). |
Rs. 50000/- or 1% of the Trade value whichever is higher. |
28th Jan 2015 & 16th Mar 2015 |
2 |
Match Trade / Reversal Trade |
(i)Reversal of transactions by same Client(s) or within same Group of Client(s) at significantly different trade prices within a short period of time. (ii) One client makes significant profit and other suffers a loss or apparent loss booking transactions in illiquid contract/securities including options. |
Rs. 50000/- or 1% of the Trade value whichever is higher. |
28th Jan 2015 & 16th Mar 2015 |
3 |
Circular Trading |
(i)Continuous/concentration based trading by client/group of clients in particular scrip over a period of time. (ii) Client/group of clients contributing significant volume (broker and exchange level) in particular scrip – especially illiquid scrip and /or illiquid contracts (iii) Possible matching of trades with a specific group of clients (like same trade number on both buy and sell side of a member and/or immediate execution of order in illiquid scrip etc.) (iv) Possible reversal of trades with the same group of clients (like same trade number on both buy and sell side of a member and/or immediate execution of order in illiquid scrip) |
Rs. 50000/- or 1% of the Trade value whichever is higher. |
28th Jan 2015 & 16th Mar 2015 |
4 |
Shifting of positions |
In order to avoid RMS selling due to aging debit, few clients shift their positions to other parties by matching their trades. |
Rs. 50000/- or 1% of the Trade value whichever is higher. |
28th Jan 2015 & 16th Mar 2015 |
5 |
Unauthorized Trading |
Trade executed in clients A/c without consent of client. |
0.1% of the disputed Turnover or Rs. 50,000/- whichever is lower |
9th August, 2012 |
6 |
Off Market transfer in own A/c of BA |
DP off market Transactions between Business Associates and their clients, and BA having trading A/c with other trading member. |
A minimum of Rs. 5,000/- as penalty (subject to a maximum of such amount as may be decided by the Management but not exceeding Rs. 1, 00,000/-) and/ or Exchange imposed penalty |
SEBI Circular SEBI/MRD/SE/Cir- 33/2003/27/08 dated August 27, 2003 and Surveillance Circular dated December 05, 2013 |
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