SECURITIES AND EXCHANGE BOARD OF INDIA SECONDARY MARKET DEPARTMENT Mittal Court, A Wing, Gr. Floor, 224, Nariman Point, Mumbai 400 021
To Executive Directors/Presidents/ Managing Directors of all Stock Exchanges.
Dear Sir,
Based on the suggestions/representations received from various Stock Exchanges, SEBI has examined the applicability of Rule 8(1)(f) and 8(3)(f) of the Securities Contract (Regulation) Rules, 1957, relating to Fund Based Activities of Brokers. It has been opined that borrowing and lending of funds, by a trading member, in connection with or incidental to or consequential upon the securities business, would not be disqualified under Rule 8(1)(f) and 8(3)(f).
Yours sincerely,
M.D. PATEL EXECUTIVE DIRECTOR SECONDARY MARKET DEPARTMENT
cc: a] Chairman’s Secretariat. b] All Executive Directors, Division Chiefs and Regional Managers of SEBI. c] All SEBI Nominee Directors on the Board of Exchanges. d] All Division Chiefs requested to circulate to all their officers.