N O T I C E
Dated : January
27, 2016
Trading
members are hereby informed that the Exchange has received a Circular from SEBI
vide Ref. No. SEBI/HO/MRD/DSA/CIR/P/2016/30 dated January 22, 2016 regarding, Amendment to SEBI Circular
CIR/MRD/DSA/33/2012 dated December 13, 2012 pursuant to amendment in Regulation
2(1)(b) of SECC Regulations, 2012 .The contents of the said
circular are reproduced hereunder for information of trading members.
CIRCULAR
SEBI/HO/MRD/DSA/CIR/P/2016/30 January 22, 2016
All recognised Stock Exchanges/ Clearing Corporations
Dear Sir/Madam,
Sub: Amendment to SEBI Circular
CIR/MRD/DSA/33/2012 dated December 13, 2012 pursuant to amendment in Regulation
2(1)(b) of SECC Regulations, 2012.
1. Pursuant to the approval of SEBI Board
in its meeting held on November 30, 2015, SEBI has notified the amendments to
the definition of associate as contained in Regulation 2(1)(b) of SECC
Regulations.
2. Consequent to the amended definition
of ‘associate’ as contained in Regulation 2(1)(b) of SECC Regulations, it has
been decided to review the provisions of Para 14(1) of SEBI Circular No:
CIR/MRD/DSA/33/2012 dated December 13, 2012.
3. Accordingly, the Para 14.1 of the SEBI
Circular No: CIR/MRD/DSA/33/2012 dated December 13, 2012 providing
clarification with respect to composition of governing board under regulation
23(7), is replaced as under:
14 .1
a) no trading member or clearing member,
or their associates and agents, irrespective of the stock exchange/ clearing
corporation of which they are members, shall be on the governing board of any
recognised stock exchange or recognised clearing corporation.
b) a person who is a director in an entity, that itself is a
trading member or clearing member or has associate(s) as trading member(s) or
clearing member(s) in terms of regulation 2(1)(b), he/she will be
deemed to be trading member or clearing member:
Provided a person will not be deemed to
be Clearing Member and / or Trading Member or their associate for the purpose
of Regulation 23(7), if he/she is on the board of a Public Financial
Institution (PFI) or Bank which is in Public Sector or which either has no
identifiable ultimate promoter or the ultimate promoter is in Public Sector or
has well diversified shareholding , and such PFI or Bank or its associate is a
Clearing Member and / or Trading Member. Further, independent directors of
associates of PFI or Bank in Public Sector, who are Clearing Member and/or
Trading Member and where the majority shareholding is that of such PFI or Bank
in Public Sector, will not be deemed to be Clearing Member and / or Trading
Member for the purpose of Regulation 23(7).
c) The appointment shall be subject to
fulfillment of other requirements and satisfaction of SEBI in accordance with
Regulation 2(1)(b).
d) Recognised Stock Exchange and
recognised Clearing Corporation, shall monitor and ensure the compliance of the
Regulation 23(7) on continuous basis, to ensure that directors appointed, on
their governing board, do not get associated with Trading Member or Clearing
Member after approval and appointment.
4. In view of
the above, the recognised stock exchanges are advised to:-
(a)
make necessary amendments to the their bye-laws, rules or regulations, for
incorporation of the above immediately;
(b)
bring the provisions of this circular to the notice of its trading members and
also to disseminate the same through their website ; and
(c) communicate to SEBI, the status of
implementation of this circular in the Monthly Development Reports to SEBI.
5. This circular is issued in exercise of
powers conferred under Section 11(1) and 11(2)(j) 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 market.
6. Other contents of the SEBI Circular
No: CIR/MRD/DSA/33/2012 dated December 13, 2012 will remain operative.
7. This circular is available on SEBI website at www.sebi.gov.in.
Yours faithfully,
Bithin Mahanta
Deputy General Manager
Email: bithinm@sebi.gov.in
Trading
Members are requested to take note of the aforesaid guidelines of SEBI and act
accordingly.
M.A.V. Raju
General
Manager