Insurance
As per SEBI directive dated January 19, 1996 it is mandatory for every trading member to have an insurance cover.
Further, the members are advised to take note of the following and put in place systems and procedures so as to ensure adherence to the compliance requirements:
- It is mandatory for the members to have an insurance cover at all points of time and submit the renewed copy to the Exchange on or before expiry.
- In case, Member is not trading in any particular financial year and has not renewed the insurance policy, the member is required to submit a declaration for not trading on their letter head duly signed by authorised signatory to the Exchange. Member trading only in proprietary account, needs to submit a declaration stating the same on their letter head duly signed by authorised signatory to the Exchange.
- For non-submission of Insurance policy, a penalty of Rs. 1000/- per day will be levied till the date of submission. The Exchange provides a grace period of 1 month to the member to electronically submit the document. If the same non-compliance is repeated in subsequent years, the financial disincentives will escalate to 50%.
- The penalty will be collected on monthly basis from the Exchange dues account of the member.