BSE revives Remisier system

As per the norms worked out by the BSE, a remisier can be registered only with one member. However, there would be no limit on the number of remisiers to be appointed by a member. A remisier should not be an employee of any individual or any oganisation. A remisier should not be or act as a sub-brokers anywhere so long as he continues as a remisier.

Any dispute between the member and his remisier relating to or arising out of any transactions done on the exchange will be subject to arbitration as provided in the Bye-laws.

According to BSE president M G Damani, members have expressed difficulties in doing business through sub-brokers, whose registration rules require a member to be personally responsible for unlimited amount in respect of liabilities of the sub-brokers toward their clients.

Damani said with automated screen based trading and computerisation of brokers’ back offices, the manual work has been substantially reduced in the past two years. “The constraints that compelled members to refuse more clients do not exist any more. Investors are craving for dealing directly with main brokers. Due to lowering of brokerage rates, brokers need more business to break-even,” he said.

The time has now come for the members to increase the availability of their services to investing public. “The contracts of members of BSE should reach a wider horizon of investors throughout the country, he said.” `’The development of chain of remisiers and serving a larger number of investors directly would enhance the credibility of the members,” Damani added.

The remisier system is expected to replace sub-brokers on the BSE.

Sub-brokers who have not registered with the Securities and Exchange Board of India are likely to opt for the remisier system. “Both remisier and sub-broker will be doing the same job,” said a broker.