9th December, 2009
Trading Members are hereby informed
that the Exchange has received a Circular from SEBI Ref. No. MRD/DoP/SE/Cir-21/2009 dated December 09, 2009 on the subject cited above. The contents of the said Circular are given
here under for information of the trading
members.
DEPUTY GENERAL MANAGER
Market Regulation
Department - Division of Policy
E-mail: harinib@sebi.gov.in
MRD/DoP/SE/Cir-
21 /2009
December
9, 2009
All
Stock Exchanges
Dear Sir,
Sub: Preservation of records
1. This
circular is issued in supersession of SEBI circular no. SEBI/MRD/SE/Cir-15/2005
dated August 4, 2005 and SEBI/MRD/SE/Cir-23/05 dated December 22, 2005.
2. In
terms of Rules 14 and 15 of Securities
Contracts (Regulation) Rules, 1957 (hereinafter referred to as SCRR, 1957),
every recognized stock exchange and its members are required to maintain and preserve the specified books of
account and documents for a period ranging from two years to five years. Further, as per regulation 18 of SEBI (Stock
Brokers & Sub-brokers) Regulations, 1992 (hereinafter referred to as Stock
Broker Regulations), every stock broker shall preserve the specified books of
account and other records for a minimum period of five years. In case such
documents are maintained in electronic form, provisions of Information
Technology Act, 2000 in this regard shall be complied with.
3. Further, it has been noticed that
enforcement agencies like CBI, Police, Crime Branch etc. have been collecting
copies of the various records/documents during the course of their
investigation. The originals of such
documents maintained either in physical or in electronic form or in both would
be required by such enforcement agencies during trial of the case also.
4. In view of the
above, it is clarified that if a copy is taken by such enforcement agency
either from physical or electronic record then the respective original is to be
maintained till the trial or investigation proceedings have concluded.
5.
All the Stock Exchanges are advised to:-
a) make necessary
amendments to the bye-laws and Listing Agreement, as applicable ;
b) bring the provisions of this circular to the
notice of their members and also to put up the same on the website; and
c) communicate to
SEBI the status of the implementation of the provisions of this circular in the
Monthly Development Report.
6.
This circular is being issued in exercise of the powers conferred by Section
11(1) of Securities and Exchange Board of India Act, 1992 to protect the
interest of investors in securities and to promote the development of, and to
regulate, the securities market.
Yours faithfully,
HARINI
BALAJI
Members are reuqested to note the aforesaid guidelines of SEBI and comply accordingly.
DGM(Surveillance)