S
O 627 (E) In exercise of the powers conferred by section 29 of the Securities
and Exchange Board of India Act, 1992 (15 of 1992), the Central Government
hereby makes the following rules, namely:-
Short title and
commencement.
1.
(1) These rules may be called the Securities and Exchange Board of India
(Stock Brokers and Sub-Brokers) Rules, 1992.
(2)
They shall come into force on the date of their publication in the Official
Gazette.
Definitions.
2.
In these rules, unless the context otherwise requires -
(a) "Act" means the Securities and Exchange
Board of India Act, 1992 (15 of 1992);
(b)
"certificate" means a certificate of registration issued by the
Board;
(c)
"Rules" means the Securities and Exchange Board of India (Stock
Brokers and Sub-Brokers) Rules, 1992;
(d)
"stock exchange" means a stock exchange which is for the time being
recognised by the Central Government under Section 4 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956);
(e)
"stock broker" means a member of a stock exchange;
(f)
"sub-broker" means any person not being a member of a stock exchange
who acts on behalf of a stock-broker as an agent or otherwise for assisting
the investors in buying, selling or dealing in securities through such
stock-brokers;
(g)
"Regulations" means the Securities and Exchange Board of India
(Stock Brokers and Sub- Brokers) Regulations, 1992.
Not to
act as stock-broker or sub-broker without registration.
3.
No stock-broker or sub-broker shall buy, sell, deal in securities, unless he
holds a certificate granted by the Board under the Regulations:
Provided
that such person may continue to buy, sell or deal in securities if he has
made an application for such registration till the disposal of such
application.
Conditions for grant
of certificate to stock-broker.
4.
The Board may grant a certificate to a stock-broker subject to the following
conditions namely:
(a) he holds the membership of any stock exchange;
(b)
he shall abide by the rules, regulations and bye-laws of the stock exchange
or stock exchanges of which he is a member;
(c)
in case of any change in the status and constitution, the stock broker shall
obtain prior permission of the Board to continue to buy, sell or deal in
securities in any stock exchange;
(d)
he shall pay the amount of fees for registration in the manner provided in
the regulations; and
(e)
he shall take adequate steps for redressal of grievances of the investors
within one month of the date of the receipt of the complaint and keep the
Board informed about the number, nature and other particulars of the
complaints received from such investors.
Conditions
of grant of certificate to sub-broker.
5.
(1) The Board may grant a certificate to a sub-broker subject to the
following conditions, namely:
(a) he shall pay the fees in the manner provided in the
regulations;
(b)
he shall take adequate steps for redressal of grievances of the investors
within one month of the date of the receipt of the complaint and keep the
Board informed about the number, nature and other particulars of the
complaints received;
(c)
in case of any change in the status and constitution, the sub- broker shall
obtain prior permission of the Board to continue to buy, sell or deal in
securities in any stock exchange; and
(d)
he is authorised in writing by a stock-broker being a member of a stock
exchange for affiliating himself in buying, selling or dealing in securities:
Provided such stock-broker is entitled to buy, sell or
deal in securities.
F. No. 20(7)/SE/92
*** These Rules have been repealed
by Ministry of Finance Notification dated September 7, 2006.
