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POLICY REGARDING TREATMENT OF INACTIVE/DORMANT ACCOUNT
OBJECTIVE
The objective of the policy is to appropriately deal with the
Inactive/dormant clients, where the clients have not traded for
more than eleven continuous months.
The policy is also applicable for accounts which have been
marked as inactive on account of Rules, Byelaws, Circulars and
guidelines issued by SEBI, Sock Exchange and Internal Risk
Management Policies.
BACKGROUND
SEBI vide circular dated Dec 03, 2009 and the NSE vide circular
no. NSE/NSP/13606 dated Dec 03, 2009 directed that a policy be
framed by the stock brokers to deal with the inactive/dormant
accounts.
POLICY
It is prudent to keep a track of dormant and inactive accounts,
which could be the breeding ground for any unauthorised
transactions. Hence, a closer look is warranted for handling
dormant accounts and also to lay down a procedure for
reactivating them.
PROCEDURE TO HANDLE INACTIVE/DORMANT ACCOUNTS:
If there is no transaction (buy/sell) entered into by
the account holder for more than 11 continuous months, the
account will be marked as ‘INACTIVE/DORMANT’.All Funds &
Securities belonging to such Inactive Clients shall be returned
to them within a week of marking as Inactive Account.
All the accounts marked as ‘INACTIVE/DORMANT’ shall be set to a
‘zero limit’ in the exposures. If the client wants to make the
account ‘ACTIVE’ afterwards, necessary permission will have to
be obtained from the operations in-charge/proprietor. In case,
the client account is made inactive due to submission of
documents or any other information, the same will be insisted
upon and then only the account shall be reactivated. In case
there is any change in the information such as, address, mobile
number, email id, bank/demat account, financial disclosure
provided in KYC at the time of registration as client, the same
will be collected, verified and incorporated in the client
master and then only the activation will be carried out. The
client account shall be made active after due verification as
per rules and company policy in vogue at those times.
CONTROLS AFTER ACTIVATION OF INACTIVE ACCOUNTS
Trades in accounts that have been reactivated after a lapse of
11 months or more shall be confirmed by a person from head
office (back office section), who would not have punched the
orders.
APPROVAL AND REVIEW
The policy has been decided by the Complaince Office, Ramesh
Bajaj and therefore, further approvals are not necessary. The
policy shall be reviewed as and when there are any changes
introduced by any statutory authority or as and when it is found
necessary to change on account of business needs and Risk
Management Policy.
POLICY COMMUNICATION
A copy of this policy shall be made available to all
the relevant staff/persons such as: compliance officer /
department in-charge of registration of clients and sub-broker /
authorised persons.
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