SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
July 8, 1999
The President/Executive Director/Managing Director
of all Stock Exchanges.
Sub.: Trading and Settlement of trades in dematerialised securities
The Working Group on dematerialisation of securities at its meeting held on May 3, 1999 suggested that the stock exchanges should provide an additional trading window, which would give one time facility for small investors to sell physical shares (which are in compulsory demat list) not exceeding 500 shares in number irrespective of their value. As of now, this facility is available at The Stock Exchange, Mumbai (BSE), National Stock Exchange (NSE), Delhi Stock Exchange (DSE) and Calcutta Stock Exchange (CSE).
It has now been decided that all the stock exchanges shall introduce the scheme for small investors by providing similar trading facility. This facility shall be available only to registered holders of shares. The shares standing in the name of individuals/HUF shall alone constitute a good delivery. The selling/delivering member must necessarily be the introducing member. The buyers of the shares shall not be permitted to reintroduce the shares in the market in the physical form. This facility should be made available on all trading days.
All the Stock Exchanges shall introduce this scheme urgently for small investors under intimation to SEBI and also advise the member brokers not to reject any client’s request for trading in this segment.
P. K. KURIACHEN