Policy on Pre-Funded Instruments/ Electronic Fund Transfer

With reference to NSE Circular No. NSE/INSP/2011/118 dated June 9, 2011 on the drafted policy on Pre-funded Instrument/Electronic Fund Transfer which has been approved by Board /Management/ key Personnel’s are given hereunder:

1. The company instructs its office bearers to check properly the instrument received from clients before depositing the same into bank.
2. If on checking, the instrument is identified as Pay Order/DD, then a suitable reason/classification is required to be obtained from the client.
3. The details of the instrument must be tallied with the detail provided by the clients in KYC before entering into back office software
4. In case of mismatch is identified, it should be reported to department head/ management/ key personnel’s for taking appropriate action
5. Clients who make the payment through pre-fund instrument will be advised to avoid it or not to use this route by educating them the Exchange and PMLA rules & byelaws in this regard.
6. Payment received through Electronic Fund Transfer have to be properly check with the detail available in bank statement like payee account no, payee name etc. and in case of non – availability of the detail in bank statement then it will be asked from the client to confirm the payment detail through e-mail or SMS.
7. In addition to above circulars, issued by Exchange from time to time has to be followed for proper compliance on this matter.