15th October, 2013
All Trading Members of the Exchange are hereby
informed that the SEBI vide its Circulars No.
CIR/MIRSD/08/2013, dated 30th
September 2013, had issued guidelines for implementation of the
modalities notified in the Securities and Exchange Board of India (Stock
Brokers and Sub-brokers) (Second Amendment) Regulations, 2013 dated 27th
September 2013 as under:
Quote
“ DEPUTY GENERAL MANAGER
CIR/MIRSD/8/2013
September 30, 2013
All Recognized Stock Exchanges and Clearing Corporations
Sub: Simplification of registration
requirements for Stock Brokers
1. Please find enclosed the Notification No. LAD-NRO/GN/2013-14/25/24775
dated September 27, 2013 amending
the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 (hereinafter referred to as Broker Regulations). As per the amendment, the existing
practice of obtaining multiple registrations for operating in different segments
of a stock exchange / clearing
corporation has been done away with
and instead a single registration per stock exchange
/ clearing corporation shall be required. For
operating in multiple segments, approval will be required from the
stock exchange or clearing corporation.
2. For the purpose
of implementing the revised
registration requirements, the following
guidelines are being issued:
a. If a new entity intends
to register as a stock broker or clearing member in any segment(s) of a stock exchange or a clearing corporation promoted
by that stock exchange, then the entity shall apply to
SEBI through the respective stock
exchange or clearing corporation in the manner prescribed in the
Broker Regulations in any one segment. The entity shall be issued a certificate with a unique registration
number for each stock exchange or clearing
corporation, as the case may be, irrespective of number of segments.
b. If
an entity is already registered with SEBI in any segment
of the stock exchange, then for operating in any other segment of that stock exchange
or for operating in the clearing
corporation promoted by that stock exchange, the entity need not
apply to SEBI. The entity can
directly apply to the concerned stock
exchange or clearing corporation as per the
procedure prescribed in the Broker
Regulations for approval.
c. Similarly, if any entity is already registered with SEBI in
any segment of the clearing corporation, then for operating in any other segment of the clearing corporation or
for operating in the
stock
exchange
which has promoted that clearing corporation, the entity shall follow the procedure
as prescribed in Clause
2b
above.
d. Fees shall be applicable for all the stock brokers,
self clearing members
and clearing members as per Schedule V of the Broker Regulations. As per current practice, the entity shall
continue to be
liable to pay fees for each additional
segment approved by the stock exchange or clearing corporation, as per the
Schedule to the Brokers Regulations. For stock brokers coming under Schedule III,
fees shall continue to be applicable
as per that Schedule till such time
as the Schedule V becomes
applicable to them.
3. The stock exchange
or clearing corporation shall grant approval
for any additional segment to
the stock broker, self-clearing member or clearing member,
as the case may be, after exercising due diligence
and on being satisfied about the compliance of all relevant
eligibility requirements, and
shall also ensure:
a. The
applicant, its directors, proprietor, partners and associates satisfy the Fit and Proper Criteria as defined in the SEBI (Intermediaries) Regulations, 2008 and whether any
past actions taken / initiated against
them
by
SEBI
/
stock
exchange(s) or other regulators.
b. The stock exchange or clearing corporation shall satisfy itself
that the applicant has taken corrective steps to rectify the deficiencies or irregularities observed in the past. They may also seek
details whether the Board of the
applicant is satisfied about the steps taken. They may
also carry out inspection, wherever considered
appropriate.
c.
Recover all pending fees / dues payable to SEBI and / or stock exchange.
4.
The
Stock Exchanges and Clearing Corporations are directed to -
a.
bring the provisions
of this circular to the notice of the Stock Brokers,
Self Clearing members and Clearing members as the case may be, 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 co-ordination with one another; and
c. Communicate to SEBI, the status of the
implementation of the provisions of this
circular through Monthly
Development Report of the following
month.
5. This circular is issued in exercise of powers conferred
under Section 11(1) of the Securities and Exchange Board
of India Act, 1992 and Regulation 29 & 30 of the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 to
protect the interests of investors in securities and to promote the development of, and to regulate the
securities markets.
Yours faithfully,
A S Mithwani
”
Unquote
All Trading Members of the Exchange are
advised to take note of the above and comply accordingly.
M.A.V. RAJU
General Manager