SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMDRP/POLICY/ CIR-26/99
August 17, 1999
To,
The President/Executive Directors/Managing Directors
All the Stock Exchanges
Dear Sir,
Margins and expansion of trading terminals of exchanges
SEBI convened a meeting of the representatives of all the stock exchanges on August 09, 1999, to take stock of the progress made by the stock exchanges and also to discuss the steps to be taken for the further development of the capital market. In the meeting among other things the following decisions were taken:-
Margins:
It was decided that, in partial amendment of circular no. SMDRP/POLICY/CIR-19/99 dated July 02, 1999 relating to margins, for the exchanges having a base minimum capital of Rs. 2 lakhs, the margin exemption would be to the extent of Rs. 50,000/- and for exchanges which have enhanced the base minimum capital in compliance with our circular no. SMD/SED/RCG/270/96 dated January 16, 1996 the exempted margin would be Rs. 1 lakh.
Expansion of trading terminals of the exchanges:
SEBI had vide circular no. SMD/POLICY/5325/96 dated October 30, 1996, issued guidelines for the expansion of the trading terminals. In this regard, it was decided that expansion of the trading terminals of the regional exchanges to centres which are outside the municipal limits of the other exchanges would be allowed without requiring prior permission of SEBI, subject to the conditions that the exchanges expanding the terminals would comply with the requirements specified in the circular dated October 30, 1996. The Stock Exchanges expanding the terminals would be required to keep SEBI informed of the number of trading terminals so established along with the names of the centres regularly in the monthly development report of the exchange.
Yours faithfully,
P K BINDLISH
DIVISION CHIEF
Secondary Market, Depository
Research & Publication Department
E-mail: pkb@ sebi.gov.in