Archive for the ‘Stock Exchanges’ Category


CIRCULAR, CIR/MIRSD/8 /2012 dated July 05, 2012

To

All Recognized Stock Exchanges

All SEBI registered Registrars to an Issue and Share Transfer Agents

1. The listing agreement for equity shares prescribed under the Securities Contracts (Regulation) Act, 1956 inter alia specifies a period of one month for registering transfer of shares from the date of lodgment.

2. With a view to expedite the transfer process in the interest of the investors, it has been decided, in consultation with Registrars Association of India (RAIN), Stock Exchanges and market participants to reduce the time-line for registering the transfer of shares to 15 days. The same time-line shall also be applicable for transfer of debt securities.

3. Accordingly, all the recognized stock exchanges are directed

a. to amend Clauses 3 (c) and 12A(3) of the listing agreement for equity shares,

b. to amend Clauses 3(c) and 14(b) of the SME Equity listing agreement,

c. to incorporate the time-line of 15 days for transfer of debt securities and the provision for compensation of the opportunity losses caused during the period of delay in transfer, in the listing agreement for debt securities, on the lines of the existing provisions in the listing agreement for equity shares and SEBI Circular No. SMDRP/POLICY/CIR-46/2001 dated September 27, 2001,

d. to amend any other clauses as applicable in the above listing agreements.

4. All SEBI registered Registrars to an Issue and Share Transfer Agents are directed to adhere to the above time-lines for transfer of shares and debt securities.

5. In view of the above, the time-line for transfer of shares and / or provision for compensation for delay thereof, as referred to in SEBI Circulars No. RTI Circular No.1(2000-2001) dated May 09, 2001, SMDRP/POLICY/CIR-46/2001 dated September 27, 2001 and  PMD/RRTI/NB/22463/2002 dated November 20, 2002 stand modified.

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 and shall come into force with effect from October 01, 2012.

7. This circular is available on SEBI website (www.sebi.gov.in) under the categories “Legal Framework” and “Circulars”.

Yours faithfully,

K. SARAVANAN

Deputy General Manager

Tel. No: 022-26449220

Email id: saravanank@sebi.gov.in

Click here to download the complete text of the above Circular in PDF Format- CIRCULAR, CIR/MIRSD/8 /2012 dated July 05, 2012.

Source: Securities and Exchange Board of India.


Clarification to the “Guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) Circular dated April 13, 2012”

CIRCULAR, CIR/MRD/DMS/ 17 /2012, dated June 22, 2012

All Stock Exchanges / All Depositories

1. SEBI vide circular no CIR/MRD/DMS/12/2012 dated April 13, 2012 had issued broad guidelines for Business Continuity Plan and Disaster Recovery for Stock Exchanges and Depositories.

2. In this regard, Stock Exchanges and Depositories have sought guidance and clarifications regarding some of the provisions of the circular.

3. Upon examination it has been decided to modify the guidelines as under:

a. Clause 1. ii. may be read as:

“Apart from DRS, stock exchanges should have a Near Site (NS) to ensure zero data loss whereas, the depositories should also ensure zero data loss by adopting a suitable mechanism”.

b. Clause 1. v. b) may be read as:

“Exchanges / Depositories should have Recovery Time Objective (RTO) and Recovery Point Objective (RPO) not more than 4 hours and 30 minutes, respectively”.

c. Clause 1. vii. c) may be read as:

“Stock Exchanges / Depositories / Clearing Houses or Clearing Corporations of Stock Exchanges should also demonstrate their preparedness to handle any issue which may arise due to trading halts in stock exchanges and / or failure or stoppages at other Stock Exchanges / Depositories / Clearing Corporations”.

4. This circular is being 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 market.

5. This circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework” and “Circulars”.

Yours faithfully,

B. J. Dilip

Deputy General Manager

+91-22-26449682

dilipbj@sebi.gov.in

Click here to download the complete text of the above Circular in PDF Format- CIRCULAR, CIR/MRD/DMS/ 17 /2012, dated June 22, 2012.

Source: Securities and Exchange Board of India.


Redressal of complaints against Stock Exchanges (SEs) and Depositories through SEBI Complaints Redress System (SCORES).

CIRCULAR, CIR/MRD/ICC/16/2012, June 15, 2012

All Depositories

All recognized Stock Exchanges

1. As you are aware, SEBI has commenced processing of complaints through SCORES.

2. The complaints received by SEBI against SEs and Depositories shall be electronically sent through SCORES. You are advised to view the pending complaints at http://scores.gov.in/admin and submit the Action Taken Report (ATR) along with supporting documents electronically in SCORES. Please note that updation of action taken shall not be possible with physical ATRs. Hence, submission of physical ATR shall not be accepted for complaints lodged in SCORES.

3. The SEs and Depositories shall do the following:

a. indicate a contact person in case of SCORES, who is an employee heading the complaint services division/cell/department. Contact details (i.e. phone no., email id, postal address) of the said contact person be made widely available for e.g. on the websites of SEs/Depositories.

b. address/redress the complaints within a period of 15 days upon receipt of complaint on SCORES. In case additional information is required from the complainant, the same shall be sought within 7 days of receipt on SCORES. In such case, the period of 15 days will be counted upon the receipt of additional information.

c. maintain a monthly record of the complaints which are not addressed/redressed within 15 days from the date of receipt of the complaint/information, alongwith the reason for such pendency.

d. Upload/update the ATR on the SCORES. Failure to do so shall be considered as non-redressal of the complaint and the complaint shall be shown as pending.

4. The circular is issued in exercise of powers conferred upon SEBI under Section 11(1) of the Securities and Exchange Board of India Act, 1992.

5. The circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework” and “Circulars”.

Yours faithfully,

B K Gupta

Deputy General Manager

022-26449218.

bhartendrakg@sebi.gov.in

Click here to download the complete text of the above Circular in PDF Format-CIR/MRD/ICC/16/2012, June 15, 2012.

Source: Securities and Exchange Board of India.


Establishment of Connectivity with both depositories NSDL and CDSL- Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement

CIRCULAR- CIR/MRD/DP/ 15 /2012- Dated June 14, 2012

To,

All Stock Exchanges

1. It is observed from the information provided by the depositories that the companies listed in Annexure ‘A’ have established connectivity with both the depositories.

2. The stock exchanges may consider shifting the trading in these securities to normal Rolling Settlement subject to the following:

a) At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent (RTA) and submit the same to the stock exchange/s. However, if an issuer-company does not have a separate RTA, it may obtain a certificate in this regard from a practicing company Secretary/Chartered Accountant and submit the same to the stock exchange/s.

b) There are no other grounds/reasons for continuation of the trading in TFTS.

3. The Stock Exchanges are advised to report to SEBI, the action taken in this regard in the Monthly/Quarterly Development Report.

Yours faithfully,

B. J. Dilip

Deputy General Manager

022-26449682

Email: dilipbj@sebi.gov.in

Annexure A

Click here to download the complete text of the above Circular in PDF Format-CIR/MRD/DP/ 15 /2012- Dated June 14, 2012.

Source: Securities and Exchange Board of India.


CIRCULAR- CIR/ IMD/ FII&C/ 13/ 2012, dated June 07, 2012

All SEBI registered Intermediaries/ Recognized Stock Exchanges/ Depositories/Mutual Fund/ qualified Depository Participants (DP)

Vide SEBI circulars Cir/IMD/DF/14/2011 and Cir/IMD/FII&C/3/2012 dated August 09, 2011 and January 13, 2012, respectively, Qualified Foreign Investors (QFI) were allowed to invest in schemes of Indian mutual funds and Indian equity shares subject to terms and conditions mentioned therein. Subsequently, vide SEBI circular CIR/IMD/FII&C/4/2012 dated January 25, 2012, the eligibility criteria for a qualified DP was revised.

2. On a review and in consultation with the Government of India (GoI) and RBI, it has been decided to revise the definition of QFI as under:

QFI shall mean a person who fulfils the following criteria:

(i) Resident in a country that is a member of Financial Action Task Force (FATF) or a member of a group which is a member of FATF; and

(ii) Resident in a country that is a signatory to IOSCO’s MMOU (Appendix A Signatories) or a signatory of a bilateral MOU with SEBI:

Provided that the person is not resident in a country listed in the public statements issued by FATF from time to time on-(i) jurisdictions having a strategic Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) deficiencies to which counter measures apply, (ii) jurisdictions that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies:

Provided further such person is not resident in India:

Provided further that such person is not registered with SEBI as Foreign Institutional Investor or Sub-account or Foreign Venture Capital Investor.

Explanation.-For the purposes of this clause:

(1)The term “Person” shall carry the same meaning under Foreign Exchange Management Act (FEMA), 1999 and section 2(31) of the Income Tax Act, 1961;

(2) The phrase “resident in India” shall carry the same meaning as in the FEMA 1999, and Income Tax Act, 1961;

(3) “Resident” in a country, other than India, shall mean resident as per the direct tax laws of that country.

(4) “Bilateral MoU with SEBI” shall mean a bilateral MoU between SEBI and the overseas regulator that inter alia provides for information sharing arrangements.

(5) Member of FATF shall not mean an Associate member of FATF.

The definition of QFI, as provided in the circulars Cir/IMD/DF/14/2011 and Cir/IMD/FII&C/3/2012 dated August 09, 2011 and January 13, 2012, respectively, stands amended as above.

3. The word “Purchase” used in clause 6.1.4 of circular Cir/IMD/FII&C/3/2012 dated January 13, 2012 shall be substituted with the word “Subscription”.

4. Between clauses 8.6 and 8.7 of Circular dated January 13, 2012, clause 8.6.1 is inserted to read as under:

“8.6.1. In case a person invests in the same company through both QFI route and FDI route, the aggregate holding of the person in such company shall not exceed five percent of paid up equity capital of the company at any point of time. This investment limit shall be applicable to each class of equity shares having separate and distinct ISIN. This shall be subject to guidelines on FDI as prescribed by GoI and RBI from time to time.”

5. It has been decided to allow QFIs to make fresh purchases of eligible securities, out of the sale/ redemption/ dividend proceeds of any of the eligible securities. Further, it is clarified that all the eligible securities shall be held in a single demat account of the QFI. Eligible securities shall mean mutual fund units (under both direct and indirect route), equity shares, corporate debt and any other security which is permitted for investment by QFI from time to time by GoI, RBI and SEBI.

Clause 4.7.7 of circular Cir/IMD/DF/14/2011 dated August 09, 2011 and Clause 9.2.2 of circular Cir/IMD/FII&C/3/2012 dated January 13, 2012 stand amended, accordingly.

6. It has been further decided to extend the option of appointment of custodian of securities by the QFI. The QFI, if it so desires, may appoint a custodian of securities, who would be obligated to perform clearing and settlement of securities on behalf of the QFI client. However, no person shall be appointed as custodian by the QFI unless it is itself the qualified DP of the QFI and is also registered as custodian with SEBI under SEBI (Custodian of Securities) Regulations, 1996.

7. A QFI shall open a single non-interest bearing Rupee Account with an AD Category- I bank in India, for routing the receipt and payment for transactions relating to purchase and sale of eligible securities subject to the conditions as may be prescribed by RBI from time to time. Accordingly, it is clarified that henceforth there is no more requirement for opening and maintenance of a single rupee pool bank account by the qualified DP. QFIs, shall, henceforth invest in all eligible securities through this single non- interest bearing Rupee Account.

Circulars dated August 9, 2011, January 13, 2012, and January 25, 2012 respectively, stand amended as above.

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 market.

Yours faithfully,

S MADHUSUDHANAN

Deputy General Manager

Tel No.: 022-26449614

Email: smadhu@sebi.gov.in

Click here to download the complete text of the above Circular in PDF Format- CIRCULAR- CIR/ IMD/ FII&C/ 13/ 2012, dated June 07, 2012.

Source: Securities and Exchange Board of India.