Shorter, uniform settlement, faster arbitration

To

All the Presidents/Executive Directors of all the Stock Exchanges

Shorter, uniform settlement, faster arbitration

As you would know, the Honorable Finance Minister met the Presidents of major stock exchanges on March 28, 1992 and in the meeting the Honorable Finance Minister advised them that they should immediately initiate necessary reforms in stock exchange practices and procedures specially in the following areas.:

1. Increasing corporate membership;

2. Uniform and longer trading hours (at least 3 hours) on all Stock Exchanges;

3. A shorter, uniform and synchronized settlement period on all Stock Exchanges;

4. Self-regulation by Stock Exchanges and effective inspection of the books and records of the brokers, coupled with quicker and effective resolution of investors complaints;

5. Arbitration should be faster, insider trading should be checked and price rigging and kerb deals effectively controlled.

The Honorable Finance Minister also desired that stock exchanges should furnish a progress report to SEBI in respect of the aforesaid items and in turn SEBI would submit a progress report on the same to the Honorable Finance Minister Sometime in June.

Hence, we request you to submit a report regarding progress achieved by your Stock Exchange in respect of the aforesaid items by May 29, 1992. This matter may kindly be considered as urgent.

Please acknowledge receipt.

Thanking you,

Yours faithfully,
sd/-

U.C. DIKSHIT
HEAD - SECONDARY MARKET DEPARTMENT - I