Sebi asks brokers to keep clients' call records for 3 yrs

New Delhi, Nov 30 () Markets regulator Sebi today asked brokers to keep records of telephonic communications with clients for three years in a bid to prevent unauthorised trading activities. Earlier, no time period was specified for call records by the Securities and Exchange Board of India (Sebi). The new decision has been taken after the regulatorreceived representations from brokers and their associationsexpressing operational difficulties caused to them.In view of operational difficulties faced by brokers,Sebi has decided that brokers will have to maintain the callrecords "for a minimum period for which the arbitrationaccepts investor complaints as notified from time to time,currently three years".However, in cases where dispute has been raised, suchrecords would be kept till final resolution of the dispute,the regulator said in a circular.If Sebi desires that specific records be preserved thensuch records will be kept till further intimation by theregulator.The evidence could be physical record written and signedby client, telephone recording, e-mail from authorised ID, logfor internet transactions, record of SMS messages or any otherlegally verifiable record.Sebi reiterated that the onus will be on brokers toproduce proof of clients activities in the event of anydispute arising out of a stock trade.However, for exceptional cases such as technical failure,where broker fails to produce order placing evidences, thenthe broker will have to justify it with reasons for the sameand depending upon merit and other appropriate evidences likepost trade confirmation by client in respect of disputed tradewill be considered, the regulator noted. SPMKJ