Y2K Preparedness of Stock Exchanges and Stock Brokers

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SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021

SMD//Policy/Cir- 27/99
August 19, 1999

Presidents/Executive Directors/Managing Directors
of All Stock Exchanges.

Dear Sir/Madam,

SUB : Y2K PREPAREDNESS OF STOCK EXCHANGES AND STOCK BROKERS.

In the meeting of the Heads of Stock Exchanges held on August 09, 1999, inter-alia, the issue of Y2K Preparedness of Stock Exchanges was discussed and the following decisions were taken :

1. Status of the compliance level achieved by the Stock Exchanges and the Stock Brokers shall be disclosed on the SEBI web site at the end of the month. The Stock Exchanges would furnish updated report to SEBI indicating the Y2K preparedness of themselves and the Stock Brokers as on August 31,1999 latest, by September 10,1999.
2. The Stock Exchanges, which are not Y2K compliant by November 30, 1999 would not be allowed to operate from January 02, 2000.
3. The trading terminals of the stock brokers who are not Y2K compliant by November 30, 1999 would be switched off by the Exchanges and the list of non Y2K compliant brokers would be disclosed on the web site or on the information dissemination system of the Exchange, instantly.
4. December 30, 1999 would be the last trading day of the last trading cycle in the calendar year 1999 for all the stock exchanges and Exchanges would conduct mock trading and settlement session on January 01, 2000 for two hours or so, to test all the systems including connectivity with the Depositories.
5. The Exchanges would prepare detailed contingency plans for themselves and the member brokers and forward it to SEBI latest by August 31, 1999.

You are advised to give effect to the above decisions and submit compliance reports by the respective due dates as specified above.

Yours faithfully,
 
 

M D PATEL
EXECUTIVE DIRECTOR
Secondary Market, Depository