![SEBI](https://static.indiatvnews.com/ins-web/images/lazy-big.jpg)
Capital market regulator SEBI on Tuesday clarified that the new format for seeking clients' trading preferences prescribed by it last month will not be applicable to members registered exclusively with commodity derivatives exchanges.
Such members will use the format as prescribed by the erstwhile Forward Markets Commission (FMC) in February 2015, the Securities and Exchange Board of India (SEBI) said in a circular.
Requirement under new format
Under the format, the member must specify the names of the exchanges where the member has membership, the date of consent for trading on the concerned exchange and the signature of the client.
In case of allowing a client for trading on any other exchange at a later date, which is not selected now, a separate consent letter is required to be obtained by the member from the client and to be kept as an enclosure with this document.
"In view of the fact that in the case of commodity derivatives exchanges, the overlap of traded commodities between them is low at this point in time, it is hereby clarified that.
format of 'Trading Preferences' as specified in SEBI circular dated June 21, 2023, shall not be made applicable to members registered exclusively with commodity derivatives exchanges," it added.
ALSO READ: Bank of India plans share sale to meet Sebi's minimum public holding norms
Also, it clarified that an opting-out facility should be provided to new as well as existing clients, and negative consent should be obtained separately from clients in writing.
Stock brokers will be mandated to maintain records of such written negative consent provided by the clients for at least five years.
In June, SEBI came out with a standard format for seeking the trading preferences of clients to be provided to their respective stock brokers for the same product in different exchanges.
(With PTI inputs)