NOTICE
June 29, 2011
CSE/Notices/SEBI/2011/004
Trading members are hereby
informed that the Exchange has received a Circular from SEBI vide Ref.
No.CIR/MIRSD/2/2011, dated June 03, 2011 regarding grant of prior approval to
members of stock exchanges/sub-brokers. The contents of the said Circular are
reproduced hereunder for information of the trading members.
Quote : -
CIR/MIRSD/2/2011 June 3, 2011
To
All Recognized Stock Exchanges
Dear Sir/Madam,
Sub: Periodical Report – Grant of prior approval to members of stock
exchanges/sub-brokers
1) SEBI (Stock
Brokers and Sub-brokers) Regulations, 1992 {hereinafter referred to as
"the said Regulations"}, have been amended vide Notification No.
LAD-NRO/GN/2011-12/03/12650 dated April 19, 2011 {hereinafter referred to as
"the said amendment"}, a copy of which is available on SEBI website www.sebi.gov.in
2) With the said
amendment, the requirement of members of the stock exchanges and sub-brokers to
obtain prior approval from SEBI for change in status or constitution has been
done away with. However, the members of the stock exchanges would be required
to take prior approval from SEBI for change in control.
3) The stock
exchanges will continue to grant prior approval to their members and
sub-brokers for change in status or constitution, which would include the
following;
(a) in case of a body
corporate —
(i) amalgamation,
demerger, consolidation or any other kind of corporate restructuring falling
within the scope of section 391 of the Companies Act, 1956 (1 of 1956) or the
corresponding provision of any other law for the time being in force;
(ii) change in its
managing director, whole-time director or director appointed in compliance with
clause (v) of sub-rule (4A) of rule 8 of the Securities Contracts (Regulation)
Rules, 1957; and
(iii) any change in
control over the body corporate;
(b) any change
between the following legal forms - individual, partnership firm, Hindu
undivided family, private company, public company, unlimited company or
statutory corporation and other similar changes;
(c) in case of a
partnership firm any change in partners not amounting to dissolution of the
firm;
(d) any other purpose
as may be considered appropriate by the stock exchanges
4) The stock
exchanges shall submit a periodical report with details of the changes in
status or constitution of the members / sub-brokers, as per
the format and in
accordance with guidelines given at Annexure A.
5) The stock
exchanges are directed to:
(a) bring the
provisions of this circular to the notice of the Stock Brokers and also
disseminate the same on their websites.
(b) make necessary
amendments to the relevant bye-laws, rules and regulations for the
implementation of the above decision in coordination with one another to
achieve uniformity in approach.
(c) communicate to
SEBI, the status of the implementation of the provisions of this circular in
their Monthly Development Reports.
6) This circular is
issued in exercise of powers conferred under Section 11(1) of the Securities
and Exchange Board of India Act, 1992 to protect the interests of investors in
securities and to promote the development of, and to regulate the securities
markets.
7) This circular is
available on SEBI website at www.sebi.gov.in
under the categories “Legal
Framework” and “Circulars”. Yours faithfully,
V.S.Sundaresan
Chief General Manager
022-26449200
sundaresanvs@sebi.gov.in
Encl: Annexure A
Annexure –A
Format for reporting changes in "status or constitution"
of members/ sub-brokers
Name of the stock exchange:-
Report for the quarter ending:- June/September/December/March Year:-
Date of report:-
Details of changes
S.No. |
Date of receipt |
Name of the member/ sub-broker |
Registration number INB/F/EINS |
Type of change |
Details of changes |
PAN (incoming entities) |
Date of Change |
Date of approval by stock Exchange |
|
Pre |
Post |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type |
Description of Change |
I |
Amalgamation, demerger, consolidation or any other kind of corporate restructuring falling within the scope of section 391 of the Companies Act, 1956 (1 of 1956) or the corresponding provision of any other law for the time being in force. |
II |
Change in managing director, whole-time director or director appointed in compliance with clause (v) of sub-rule (4A) of rule 8 of the Securities Contracts (Regulation) Rules, 1957. |
III |
Change in control. |
IV |
Any change between the following legal forms - individual, partnership firm, Hindu undivided family private company, public company, unlimited company or statutory corporation and other similar changes |
V |
In case of a partnership firm any change in partners not amounting to dissolution of the firm. |
VI |
Any other purpose as may be considered appropriate by the stock exchanges. |
Guidelines to fill up the format and sending the
same to SEBI
1) A separate
annexure shall be submitted for each "Type of change" as specified in
the format.
2) The report shall
be signed by an authorized representative of the stock exchange and the same
shall be stamped.
3) The Stock
Exchanges shall furnish the report to SEBI by 7th day of month following the
end of each quarter, starting with report for the quarter ending June 2011.
Thus the first report shall be submitted to SEBI on or before July 07, 2011.
4) The report shall
be submitted by e-mail at serpa@sebi.gov.in. A hard copy of the report shall also be
submitted to SEBI.
Unquote:
Trading
Members are requested to take note of the aforesaid guideline of SEBI and
comply accordingly.
MAV Raju
DGM (HR & Admn.)