Chief General Manager
Market Intermediaries Regulation &
Supervision Department
SEBI/MIRSD-DR 1/MSS/CIR-21/04
May 26, 2004
To
The Executive Director/Managing Director
All Stock Exchanges
Dear Sir / Madam,
Your attention is invited to the SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2003 notified vide notification No. SO 1095 (E) dated 23rd September, 2003. This amendment makes it mandatory for the exchanges to recognise the sub-brokers while recommending the application for registration of sub brokers.
In view of the above, you are advised to ensure that the sub-broker seeking registration is recognised by the exchange before the application is recommended to SEBI for registration as sub-broker. Similarly, the applications for cancellation of sub-broker registration must be forwarded to SEBI only after the sub-broker seeking cancellation is de-recognised by the exchange.
Further, you are advised to ensure that all the existing sub-brokers on your exchange are granted recognition immediately, if not done already.
Yours faithfully,
(M. S. Sahoo)