SECURITIES AND EXCHANGE BOARD OF INDIA SECONDARY MARKET DEPARTMENT Mittal Court, A Wing, Gr. Floor, 224, Nariman Point, Mumbai 400 021
The Executive Director/Managing Director of all Stock Exchanges
Dear Sir,
Please refer to the Circular No.SMD/POLICY/CIR/7-97 dated April 16, 1997 on the uniform norms for good/bad deliveries prescribed by SEBI. In this connection representations have been received at SEBI from brokers, sub brokers and stock exchanges to extend the deadline further in respect of clause No. 62A of the said norm.
You will appreciate that all sub brokers are required to be registered with SEBI mandatorily in terms of SEBI Act 1992 and SEBI (Stock Brokers and Sub Brokers) Rules and Regulations 1992. It was therefore unanimously decided during the last annual meeting of all stock exchanges convened by SEBI on 16.3.1997 that henceforth this provision of the law shall be enforced more effectively by inserting a clause in the uniform norm of good/bad delivery in terms of which transfer deeds dated June 1, 1997 and thereafter bearing rubber stamp on reverse thereof other than those of members of stock exchanges, clearing house, clearing corporations, SEBI registered sub brokers and remisiers registered with stock exchanges shall make the delivery bad. This provision was included under clause 62A of the said norm. The requirement of registering and regulating sub brokers cannot be over emphasised as individual investors who do not have direct access to brokers, deal through sub brokers. However, considering the request from brokers, sub brokers and stock exchanges and in view of the fact that the revised new model agreement between brokers and sub brokers prescribed by SEBI has reached them only around May 23, 1997, it has been decided that clause No. 62A of uniform norm of good/bad delivery shall be amended. The expression ``(dated June 1, 1997 and thereafter) ‘’ shall be substituted by the new expression ``(dated July 1, 1997 and thereafter)’’. It is emphasised that no further extension of time will be granted under clause 62A of uniform norm of good/bad delivery.
It is further clarified that the date mentioned under the said clause refers to the ROC date.
Yours faithfully,
O. P GAHROTRA EXECUTIVE DIRECTOR SECONDARY MARKET DEPARTMENT
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