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
Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Official Blog Fema India Experts Connect with our Facebook Page:- Click and Like our Page Subscribe our Email updates like other 15,000 Members, Free/Easy/Comfortableway
