Beginning new year, each unauthorized trade transaction by a trading member shall attract a levy of Rs. 10000 as decided by the NSE.
The changed penalty structure for unauthorized trades is inclusive of debarment of the broker from taking new clients for a one month time in case 25% of the total complaints that are put forth before the grievance redressal panel in the preceding quarter of the calendar year are found to be of illicit nature.
In a circular today, the National Stock Exchange (NSE) said, "Based on the representations received from members for review of the indicative penalty with respect to unauthorised trading, the exchange has amended the indicative penalty structure".
It further added, "the revised measures will come into effect from January 1 onwards".
In case these illicit trades continue for three consecutive quarters, the alleged broking house shall be barred from acquiring new clientele for three months time. In current practise a penalty of Rs. 1 lakh is charged on unauthorized trades.
"Beyond this, the case will be placed before the disciplinary action committee (DAC)," the exchange said.
With Inputs From PTI