The National Stock Exchange (NSE) on March 27, 2026, notified regarding the Common violations/deficiencies observed by the Exchange during the inspections of Trading Members and Authorised Persons.
The following has been stated:
• It is a continuation of an earlier circular and provides an updated list (Annexure A) of recurring compliance gaps identified by the Exchange. The circular mainly flags irregular practices by Authorised Persons, such as unauthorized handling of client funds, misuse of client login credentials, executing trades without proper authorization, and engaging in activities aimed at generating brokerage rather than client interest.
• It also notes issues like incorrect client mapping, lack of proper inspection by trading members, unapproved advertisements, and failure to maintain mandatory records and display investor-related information at AP offices.
• Additionally, the Exchange has identified deficiencies in the books and operations of trading members, including issues related to banking transactions and compliance processes.
• Overall, NSE advises all trading members to review these commonly observed irregularities and strengthen their internal systems, controls, and compliance mechanisms to ensure adherence to regulatory requirements and avoid similar lapses in future inspections.
[Notification no. - NSE/INSP/73503]
