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2. In this case, information was received on 21./03/2016 from Asstt. Director of Income Tax (Investigation), Unit 1(3), Ahmedabad by which a Survey Report was disseminated in case of beneficiary clients who have taken contrived losses and shifted out profits using Client Code Modification.

3. It is a detailed report of 589 pages. On going through the report and gathered that Client Code is a unique code which is assigned by a broker to its clients. A broker can issued just one code to a client. Client Code Modification means modification / change of the client codes after execution of trades. Vide Circular No. SMD/Policy/CIR./03 dated February 6, 2003 SEBI mandates that the stock exchanges shall not normally permit changes in the client code except to correct for genuine mistakes. The client code modifications permit brokers to rectify human errors when a client inadvertently provides a wrong code or when or a wrong code is punched in by the broker while executing the trade. The broker is allowed to change it between 3.30 pm and 4 pm to rectify a genuine error that may have occurred while entering the code. The facility ensures smooth functioning of the system and is to be used as an exception rather than routine. Client code modification means modification of client code after the execution of trade.