General Manager

Secondary Market Department

e-mail :  pkb@sebi.gov.in

SEBI/SMD/SE/15/2003/29/04

April 29, 2003

To

Managing Directors and Executive Directors

Of all the stock exchanges 

 

Dear Sir,

Sub :- Issuance of Contract Notes in electronic form

 

This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of the Securities Contracts(Regulation) Act 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

 

Please refer to our circular no. SMDRP/POLICY/CIR-56/00 dated December 15, 2000 on the captioned subject wherein it was stated that brokers can issue contract notes authenticated by means of digital signatures provided that the broker has obtained digital signature certificate from Certifying Authority under the IT Act, 2000. 

 

SEBI has been receiving representations from market participants whether, they can issue contract notes in electronic form. In this regard, it is clarified that by virtue of our above mentioned circular, the contract notes can be issued by the brokers in electronic form authenticated by means of digital signatures.

 

The Exchanges are directed to make necessary amendments to the bye-laws, rules and regulations to give effect to the above clarification immediately.

 

The Exchanges are directed to bring this clarification to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website for easy access to the investors.

 

The Exchanges are also directed to communicate to SEBI, the status of the implementation of this circular in Section II, item no. 13 of the Monthly Development Report for the month of April 2003.

 

 

Yours faithfully

 

 

P K Bindlish