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Prefunded Instrument

Policy on pre funded Instruments (Pay Order, Demand Draft, Banker’s Cheque, etc.) and Electronic Fund Transfer

In order to curb the inflow of third party funds/ unidentified money, as per SEBI Circular No. CIR/MIRSD/03/2011 dated June 9, 2011 which affects the integrity of the securities market, the following policies are adopted:

That no DD/Pay Order/Banker’s cheque is to be accepted unless the same is accompanied with a covering letter of the client alongwith the following documents:

  1. The name of the bank account holder and number of the bank account debited for the purpose, duly certified by the issuing bank.
  2. And the mode of certification may include the following:
    1. Certificate from the issuing bank on its letterhead or on a plain paper with the seal of the issuing bank.
    2. Certified copy of the requisition slip (portion which is retained by the bank) to issue the instrument.
    3. Certified copy of the passbook/bank statement for the account debited to issue the instrument.
    4. Authentication of the bank account-number debited and name of the account holder by the issuing bank on the reverse of the instrument.

We also maintain an audit trail of the funds received through electronic fund transfers to ensure that the funds are received from their clients only and the relevant documentary proof either xerox copy of receipted copy of RTGS payment instruction slip containing the name of the bank issuing the amount of transfer from the account of the client with signature or e-mail from the client containing the NEFT fund transfer giving details of bank transaction, reference no. or a covering letter of the client with bank statement debiting the amount remitted in this regard are to be preserved.

Dated: 12/07/2011