Ref:SE/4601
May 11, 1992
To,
The Presidents and Executive Directors of
all Recognised Stock Exchanges.
Dear Sir,
Registration of sub-brokers
As you would know, under Section 12(1) of the SEBI Act, 1992, no sub-broker who may be associated with securities market shall buy or sell or deal in securities except under and in accordance with the conditions of a certificate of registration obtained from SEBI in accordance with the Rules and Regulations made thereunder. In case of sub-broker who may be associated with the securities market before the establishment of the Board, he may continue to do present business, if he has made an application for registration within a period of three months from the establishment of the Board, till the disposal of such application. The Board was constituted on February 21, 1992 and hence, in terms of the SEBI Act, the present sub-brokers will have to submit their applications through the Stock Exchanges to SEBI by May 21, 1992.
In this connection, it may be mentioned that the application of a sub-broker in the secondary market for registration (Annexure I) shall be accompanied by a sponsorship letter from member-broker of recognised Stock Exchange with whom he is affiliated (Annexure II) and two references including one from his banker. The application form shall be submitted by sub-broker to the Stock Exchange of which the broker, with whom he is affiliated, is a member. It should be noted in this connection that a sub-broker who is registered on the sponsorship of a member-broker can also transact business through other member brokers of the Stock Exchange with whom the sub-broker has made arrangements and he will report the names of these member-brokers to the Stock Exchange.
For the above purpose, we enclose an application for registration as sub-broker with SEBI. You are requested to arrange to prepare copies of application forms and supply them to the sponsoring brokers and sub-brokers and advise them to fill up the same in all details and enclosing supporting documents and submit them to you by May 19, 1992. In this connection, the Stock Exchange may issue a press release to inform the sub-brokers about the aforesaid registration with SEBI through the Stock Exchange.
The Stock Exchange shall then forward the applications of those applicants who comply with all the requirements as enumerated above so as to reach SEBI by May 21, 1992 to enable it to process the same as required under the Act.
The application fee as may be prescribed under the Rules and Regulations, should be remitted on receipt of advice from SEBI.
Kindly ensure that the above time schedule for submission of applications by sub-brokers through by your Exchange is adhered to.
Kindly acknowledge receipt of the letter.
Yours faithfully,
sd/-
(U.C. DIKSHIT)
Adviser
ANNEXURE - I
Application for registration with SEBI as a sub-broker
1. Name of applicant sub-broker.
2. Trade name of sub-broker, firm, corporate body.
3. Form of organisation - sole proprietorship, partnership, corporate body. Please give names of proprietor, all partners, directors, etc.
4. Educational qualifications of proprietor, partners, directors, etc.
| NAME |
STATUS |
QUALIFICATIONS |
| |
|
|
6. Date of acquiring sub-brokership.
7. Infrastructural arrangements - indicate fax, telex, phones, number of offices and residential numbers. Also indicate the number of employees.
Office Address:
Phone No.:
Telex No.:
Fax No.:
Residential phone nos. of proprietor, partners, directors, etc.:
8. Number of branch offices and their location with phone, telex and fax numbers.
I certify that the information given in this application form is true to the best of my/our knowledge and belief.
Sponsorship letter from the stock broker to whom I/we am/are affiliated and two references, including one from the banker as required are enclosed.
SIGNATURE: __ member-broker of this Exchange.
The application is recommended/not recommended for registration by SEBI.
AUTHORISED SIGNATORY
Signature
__ Stock Exchange.
ANNEXURE - II
SPONSORSHIP LETTER TO BE GIVEN BY THE MEMBER WITH WHOM THE SUB-BROKER IS AFFILIATED.
To,
The _ Stock Exchange
Dear Sirs,
I/We understand that __ son of and he is fit and proper person to be registered as a sub-broker.
I/We also confirm that he is known to me/us for well over years and he has got good financial background, moral character and integrity. He has been transacting business frequently and was meeting the market commitments as and when they arise.
I/We hereby recommend and sponsor his application for granting registration for carrying on shares and securities business as sub-broker. I/We also wish to state that whatever the information that has been submitted is true to the best of my/our knowledge and if at a later date if any material information comes to my/our knowledge subsequent to the submission of this application, I/We undertake to keep informed about the same and the decision of the authority will be final and will be binding on me/us.
I/We member/s of ___ Exchange hereby agree to sponsor the above mentioned applicant.
Yours faithfully,
Signature of Member/s.