Dear Sir,

SEBI had earlier decided that the shares issued by companies should be pari passu in all respects so that the same ISIN numbers could be allotted. But it was brought to the notice that there has often been undue delay on the part of companies to list further issue of capital. Such delays on the part of listed companies may cause problem related to bad delivery, as there is a possibility of such freshly issued shares which will also bear the common ISIN number with shares already listed being delivered in the market without being listed. The exchanges can neither monitor nor check such deliveries.

This issue was discussed in the meeting of all the stock exchanges held on January 17, 2001. Pursuant to the decision in the meeting, the stock exchanges are advised to take immediate steps to amend the listing agreement as below:

Further, the regional stock exchange shall confirm to the depositories that the shares or securities of the company have been granted listing on all the exchanges where the company has applied for listing.

Stock Exchanges may also note that this circular comes into effect immediately and the stock exchanges must take immediate steps to amend the Listing Agreement.

Yours faithfully,
 
 

P. K. BINDLISH
Deputy General Manager
Secondary Market, Depository
Research & Publications Dept.
E-mail : pkb@sebi.gov.in