Functions of Monitoring, Investigation and Compliance department DSE

24/02/2013 16:19

The main functional areas of the department are:

  • Monitoring
  • Investigation
  • Legal & Compliance
  • Grievance Cell

Monitoring:

  • TWS set up monitoring
  • Room verification
  • DP- monitoring
  • Any other monitoring ordered by CEO regarding violations of Securities
  • Rules by any listed company with DSE or any brokerage house.
  • Company Monitoring ordered by SEC any directed by CEO.

Procedure of general monitoring:

Monitoring team generally examine the following documents :

General Observation (General documents related with share trading):

  • Account opening Form
  • Buy Sale order Slip
  • Trade confirmation Statement
  • Buy/Sale order register
  • Money receipt
  • Payment Voucher
  • Share receive and Delivery certificate
  • Broker/dealer license
  • Authorize registration certificate
  • Client ledger.
  • Stock report.
  • Bank Account Statement.
  • Net Capital Balance position.
  • Deed of Margin Agreement between member and investor (if possible).
  • Compliance report.
  • Compliant register.

Special observation (Monitoring House Activities as Depository participant):

  • BO account opening for
  • Pay in slip
  • Pay out slip
  • BO stock report
  • Find discrepancies and variability of houses activities and generating report.
  • Inform the concern house about their deficiencies.
  • Aware them about securities rules and provide feedback to the house to overcome deficiencies regarding any lapse in operating house activities and also try to re from them in order to rules and regulations.
  • Final report submits to the Securities and Exchange Commission about house status. Monitoring department monitors the activities of at least 5 brokerage houses in each Calendar month.

Special Monitoring:

Monitoring Department conducts special monitoring in brokerage houses according to SEC order through their inspection report. The procedure is same as general monitoring. The department conducts some other monitoring from time to time. They are as follows:

  • TWS set up monitoring: Monitoring department inspect the set up of TWS according to TWS installation and user manual.
  • Room verification  : Monitoring department inspect brokerage house office premises whether they are properly decorated and suitable for business.
  • DP – Monitoring  : Monitoring Department inspect DP activities of the brokerage house regarding their pay in, pay out, and other activities as DP.

Investigation:

One of the main responsibilities of Monitoring Department is to ensure compliance with Securities and Exchange rules and investigate any fraudulent activities in respect of securities market operations.

Legal:

This department assists DSE in various legal matters such as

  • Correspondence with outside solicitors if any litigation arise against DSE.
  • Assists in any other legal matters of DSE.
  • Settlement of dispute that arises out by death of members or un settled claim by the member.
  • Arrangement of hearing between appellant accused member house and settlement of any undue claim against the house.

Grievance Cell:

  • Assistance in the settlement of dispute between client complainant and member houses.

Arrangement of necessary legal procedures to settle investor claims.

  • Assistance in arrangement of hearing of complaints and also adoption of necessary steps and correspondence.

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