Securities and Exchange Broad of India
CIRCULAR
SEBI/HO/CDMRD/DMP/CIR/P/2016/74
August 30, 2016
To,
The Managing Directors / Chief Executive Officers
All Commodity Derivatives Exchanges & its members
Sir / Madam,
Sub: Maintenance and Preservation of Records
1. Pursuant to the merger of erstwhile FMC with SEBI, all commodity derivatives exchanges and their members are required to comply with the provisions of Securities Contract (Regulation) Rules, 1957 (hereinafter referred to as SCRR) and SEBI (Stock-Brokers and Sub-Brokers) Regulations, 1992(hereinafter referred to as Broker Regulations) .
2. In terms of Rules 14 and 15 of SCRR, every recognized stock exchange and its members are required to maintain and preserve the specified books of account and documents for a period ranging from two years to five years. Further, as per regulation 18 of Broker Regulations, every stock broker shall preserve the specified books of account and other records for a minimum period of five years.
3. Further, SEBI vide its circular No. MRD/DoP/SE/Cir-21/2009 dated December 09, 2009 prescribed norms regarding ‘Preservation of records’. It has been decided that the provisions of the said circular shall be made applicable for all the commodity derivatives exchanges and their members.
4. The provisions of this circular shall come in force from September 29, 2016.
5. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
6. The Exchanges are advised to:
i. to make necessary amendments to the relevant bye-laws, rules and regulations.
ii. bring the provisions of this circular to the notice of the stock brokers of the Exchange and also to disseminate the same on their website.
iii. communicate to SEBI, the status of the implementation of the provisions of this circular.
7. This circular is available on SEBI website at www.sebi.gov.in under the category “Circulars” and “Info for Commodity Derivatives”.
Yours faithfully,
Vikas Sukhwal
Deputy General Manager
Division of Market Policy
Commodity Derivatives Market Regulation Department
Email: vikass@sebi.gov.in
