THE GAZETTE OF INDIA

EXTRAORDINARY

PART –II – SECTION 3 – SUB SECTION (ii)

PUBLISHED BY AUTHORITY

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the 12^th January, 2006

SECURITIES AND EXCHANGE BOARD OF INDIA

(CUSTODIAN OF SECURITIES) (AMENDMENT) REGULATIONS, 2006

 

S.O No.39(E). – In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996, namely :-

1.      These Regulations may be called the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2006.

2.      They shall come into force on the date of their publication in the Official Gazette.

3.      In the Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996 –

 

(i)      in regulation 2, clause (e) shall be substituted with the following, namely –

”(e)      ‘custodial services’ in relation to securities of a client or gold or gold related instruments held by a mutual fund in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 means, safekeeping of such securities or gold or gold related instruments and providing services incidental thereto, and includes-

(i) maintaining accounts of securities or gold or gold related instruments of a client;

(ii) collecting the benefits or rights accruing to the client in respect of securities or gold or gold related instruments;

(iii) keeping the client informed of the actions taken or to be taken by the issuer of securities, having a bearing on the benefits or rights accruing to the client; and

(iv) maintaining and reconciling records of the services referred to in sub-clauses (i) to (iii).”

(ii)    in regulation 6, in sub-regulation (1), after clause (b), the following clause shall be inserted, namely –

“(ba)    the applicant has the requisite approvals under any law for the time being in force, in connection with providing custodial services in respect of gold or gold related instruments of a mutual fund, where applicable;”

(iii)  in regulation 8, after sub-regulation (3), the following proviso and sub-regulation shall be inserted, namely –

“Provided that the Board may restrict the certificate of registration to providing custodial services either in respect of securities or in respect of gold or gold related instruments of a client.”

“(4) A custodian of securities holding a certificate of registration as on the date of commencement of the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 2006 may

provide custodial services in respect of gold or gold related instruments of a mutual fund only after taking prior approval of the Board.”

 

 

F.No. SEBI/LAD/DOP/ 25602 /2006

 

M. DAMODARAN

CHAIRMAN

SECURITIES AND EXCHANGE BOARD OF INDIA

Footnotes:

(1)   The Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996, the Principal Regulations were published in the Gazette of India on May 16, 1996 vide S.O. No. 344(E).

(2)   The Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996 were subsequently amended –

(a)   on December 4, 1996 by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 1996 vide S.O. No.851(E).

(b)   on October 17, 1997 by the Securities and Exchange Board of India  (Custodian of Securities) (Amendment) Regulations, 1997 vide S.O. No.732 (E).

(c)   on January 5, 1998 by the Securities and Exchange Board of India (Custodian of Securities) (Amendment) Regulations, 1998 vide S.O. No.17 (E).

(d)   on March 28, 2000 by the Securities and Exchange Board of India (Appeal to the Securities Appellate Tribunal) (Amendment) Regulations, 2000 vide S.O. No.278(E).

(e)   on May 29, 2001 by the Securities and Exchange Board of India (Investment Advice by Intermediaries) (Amendment) Regulations, 2001 vide S.O. No.476(E).

(f)     on September 27, 2002 by the Securities and Exchange Board of India (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide S.O. No.1045(E).

(g)   on March 10, 2004 by the Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E).