In consultation with the Brokers’ Industry Standards Forum (ISF) and to enhance ease of doing business and ease of investment, it has been decided that the framework for Trading Members to provide the facility of voluntary freezing/blocking the online access of the trading account to their clients on account of suspicious activities shall be laid down on or before April 01, 2024, by the ISF, under the aegis of stock exchanges, in consultation with SEBI and the same shall, inter-alia, contain necessary guidelines with respect to the following:
Detailed policy for voluntary freezing/ blocking the online access of the trading account of the client including the following:
modes through which a client can request/communicate to the Trading Member for voluntarily blocking the trading accounts; issuing of acknowledgement to the clients on receipt of message; time period within which the request shall be processed and the trading account shall be frozen/blocked
Action to be taken by the Trading Member pursuant to the receipt of request for freezing/blocking of the trading account;
Process for re-enabling the client for trading/transfers;
Intimation to be provided by the trading member to the clients w.r.t. introduction of the facility to block the trading accounts.
The Stock Exchanges shall ensure that the guidelines so issued under the aforesaid Framework are implemented by Trading Members with effect from July 01, 2024. Stock Exchanges shall also put in place an appropriate reporting requirement by Trading Members to enforce the above system. A compliance report to this effect shall be submitted to SEBI by Stock Exchanges latest by August 31, 2024.
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