"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," the National Stock Exchange (NSE) said in a circular today.
"The revised measures will come into effect from January 1 onwards," it added.
Further, under the amended rules, if the unauthorised trades persist for three consecutive quarters, the trading member concerned will be debarred from taking new clients for a period of three months.
"Beyond this, the case will be placed before the disciplinary action committee (DAC)," the exchange said.
Under the existing norms, the exchange was imposing a monetary penalty of Rs one lakh on unauthorised trades, among others as determined by investor grievance redressal panel or arbitration when there is no appeal.
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