CHIEF GENERAL MANAGER
INVESTMENT MANAGEMENT DEPARTMENT
Circular No. IMD/CUST/16/2004
April 02 , 2004
All Foreign Institutional Investors and
Custodians of Securities
Sub: Unique Client Code for Foreign Institutional Investors (FIIs) and their sub-accounts(SAs)
SEBI vide circular No. SEBI/SMD/SE/11/2003/31/03 dated March 31, 2003(copy enclosed) had stipulated that the stock exchanges would generate Unique Client Codes (UCC) for institutional investors including FIIs and their sub-accounts. In order to identify the trades through multiple members of the Stock Exchanges and for the purpose of better risk management, it has been decided that FIIs/sub-accounts while trading in the Indian securities market would be required to inform the UCC to the member brokers. The use of UCC for trading through brokers will be made compulsory from a future date which will be announced separately.
In view of the above, it is advised that:
This circular is being issued in exercise of powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of and to regulate the securities market.
A copy of the circular is available at the web page "Foreign Institutional Investors" on our website www.sebi.gov.in . The custodians are requested to bring the contents of this circular to the notice of their FII clients.
Encl: As above
Secondary Market Department
e-mail : email@example.com
March 31, 2003
Managing Directors and Executive Directors
Of all the stock exchanges
Sub :-Issue of Unique Client Code by Exchanges for Mutual Funds and FIIs
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 SEBI circular no. SMDRP/POLICY/CIR-5/2003 dated February 12, 2003 regarding the activity schedule for the implementation of the T+2 rolling settlement at the exchanges w.e.f. April 01, 2003 and Para No. 6 of the circular relating to client code.
As agreed, in the meeting with stock exchanges, depositories, market participants and RBI held on March 24, 2003 to take stock of the preparedness of the exchanges, depositories and the market participants in implementing the T+2 rolling settlement, it has been decided that the exchanges would generate a unique code for Mutual Funds and each scheme of a Mutual Fund, Foreign Institutional Investors (FIIs) and their sub-accounts. As this would require the exchanges to put in place adequate systems and carry out software changes the exchanges are provided with three months time to implement the system. Till such time the present practice of putting client IDs at the time of order entry in case of FIIs and mutual funds shall continue.
The exchanges are directed to make necessary amendments to the bye-laws, rules and regulations for the implementation of the above decision immediately.
The exchanges are directed to bring the provisions of this circular 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 the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of March 2003.
P K Bindlish