CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/95 June 21, 2023
To
All Recognized Stock Exchanges
Stock Brokers through Recognized Stock Exchanges
Dear Sir/Madam,
Subject – Trading Preferences by Clients
1. SEBI, vide Annexure – 3 of the circular no. CIR/MIRSD/16/2011 dated August
22, 2011(now rescinded due to issuance of Master Circular for Stock Brokers
dated May 17, 2023), prescribed trading account related details, which clients
would need to provide while opening a trading account with a stock broker.
2. Vide, Para C of the aforementioned Annexure, the format of Trading Preferences
has been prescribed as under:
C. TRADING PREFERENCES
*Please sign in the relevant boxes where you wish to trade. The segment not chosen
should be struck off by the client.
Exchanges Segments
Cash Currency
Name of the Derivative
Exchange -1
F&O
Name of other
Segment(s), if any
Name of the
Name of the
Segment(s) -1,
Exchange -2
2...
# If, in future, the client wants to trade on any new segment/new exchange, separate
authorization/letter should be taken from the client by the stock broker.
3. Thus, currently, clients need to give separate authorization / letter in case they
want to trade on different stock exchange for the same segment or on different
segment.
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4. Based on the representations received and in consultation with Stock
Exchanges, it has been decided to standardize the format of “Trading
Preferences” in order to ensure that clients are permitted to access all the stock
exchanges in which the stock brokers are registered for the same segment.
5. Accordingly, Para C of Annexure – 8 of “Master Circular for Stock Brokers” with
reference no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/71 dated May 17,
2023, stands modified as under:
C. TRADING PREFERENCES
Please sign in the relevant boxes where you wish to trade. Please strike off the
segment not chosen by you.
Exchanges NSE, BSE & MSEI MCX,
NCDEX,
BSE & NSE
All Cash / F&O Currency Debt Commodity
Segments Mutual Derivatives
Fund
If you do not wish to trade in any of segments / Mutual Fund, please mention here
____________________.
6. All stock brokers are mandated to register their new clients on all the active stock
exchanges after obtaining the trading preferences as per the aforementioned
format. For existing clients, the stock brokers are mandated to offer them access
on all the active stock exchanges for the segments already opted by them, as a
default mode, within three months from the effective date of the circular and
inform their respective clients through email / SMS. Clients shall be given a
choice to opt out of such access by providing negative consent in this regard.
Further, the stock brokers shall activate / deactivate the segments based on the
preference of the clients.
7. The aforementioned provisions shall also be applicable to the clients registered
in accordance with SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/73
dated April 24, 2020.
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8. Stock Exchanges are directed to:
8.1. bring the provisions of this circular to the notice of stock brokers and also
disseminate the same on their websites;
8.2. make amendments to the relevant bye-laws, rules and regulations for the
implementation of the above provisions;
8.3. monitor the implementation and compliance of this circular through half
yearly internal audit and inspection of the stock brokers; and
8.4. communicate to SEBI, the status of the implementation of the provisions of
this circular in their monthly development report.
9. Applicability: The provisions of this circular shall come into force with effect from
August 01, 2023.
10. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992, to protect the interests of
investors in securities and to promote the development of, and to regulate, the
securities market.
11. This circular is available on SEBI website at www.sebi.gov.in under the category
"Circulars".
Yours faithfully,
Aradhana Verma
General Manager
Tel. No.: +91-022 26449633
Email: aradhanad@sebi.gov.in
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