[Developed based upon SEBI Circular no. CIR/MIRSD/5/2013 dated August 27, 2013]
The following document describes the risk management policy followed by Prudent Corporate Advisory Services Limited (herewith refer as PCAS). Please read it carefully as it pertains to your trading activity.
The purpose of the conflict-of-interest policy is to protect Prudent Corporate Advisory Services Limited (Now herewith refer as PCAS / Organization) interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer or director or the Organization or might result in a possible excess benefit transaction and thereby adhere to SEBI’s guidelines for avoiding or dealing with or managing conflict or interest. This policy is intended to supplement but not replace the internal code of conduct of organization already in operations.
The policy shall equally applies to all employees, sub-brokers, authorized persons, associated persons, agents etc. who are associated with the PCAS as such and accordingly deal with the client or directly / indirectly linked to them.
There are a number of situations where conflict of interest are likely to arise. However, being too specific risks restricting the application of this Policy to the examples specifically mentioned hereunder. Please note that this list of potential conflict of interest is not exhaustive. Even if a particular situation is not expressly mentioned in the policy, Associates are advised to disclose all particular situations which may result in interest and where appropriate, seek approval.
All employees are required to identify any potential conflict of interest and report it to their manager and to Compliance Department.
The following is a non-exhaustive list of typical examples of situations where conflict may arise :
PCAS shall endeavor to control conflict of interest through a range of administrative and organizational process to maintain logical & physical segregation by business area, preserve the highest level of confidentiality, restrict information flows and ensure independence in our activities which are designed to safeguard the interest of our clients.
All employees are bound by this Code of Conduct of PCAS Group, which imposes obligations to work in clients’ best interest by :
Duty to Disclose : In connection with any actual or possible conflict or interest, an interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of committees with governing board delegated powers considering the proposed transaction or arrangement. The Board or Committee thereby proceed further in determining Whether a Conflict of Interest exists or not. If the governing board or committee has reasonable cause to believe that associated person has failed to disclose actual or possible conflict of interest, it shall inform him of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the member’s response and after making further investigation as warranted by circumstances, the governing board or committee shall take appropriate disciplinary and corrective action.
The minutes of the governing board and all committees with board delegated powers shall contain :
Employees are reminded of applicable policies and procedures during training sessions and by the frequent distribution of relevant regulatory actions. In addition there is a requirement to review / update the procedures in place (including those relating to conflicts management) as the need occurs and as a matter of policy.
The Board of Directors or Managing Committee of Board of Directors of PCAS shall review this policy at least annually and where appropriate, on ad hoc basis to ensure it adequately reflects the types of conflicts or potential conflicts that might arise.
Thus, a conflict of interest situation can generally be understood as a situation where the multifaceted interest of an individual are in inter se conflict. In the context of market intermediaries like PCAS, such conflicts are augmented by the vast and diversified client base, endless product innovations, undisclosed and complex market mechanics and simultaneous operations in multiple intermediary services. Though the efforts have been made to identify various situations involving conflict of interests, it is specifically clarified that the same are not exhaustive and can vary in different situations / cases.
Please also note that this policy / guidelines shall be in addition to the provisions, if any contained in respective regulations / circulars issued by SEBI from time to time regarding dealing with conflict of interest, in respect of such intermediaries. PCAS reserves its right to amend, alter, add, delete or modify in its absolute discretion.