The total exposure of the portfolio client in derivatives should not exceed his portfolio funds placed with the portfolio manager and the portfolio manager should basically invest and not borrow on behalf of his clients.
It must be ensured that the market verifications are not resorted to in a routine manner and should be undertaken only on the basis of information/intelligence and/or prima-facie evidence which should be first recorded and, thereafter, orders of Additional Commissioner/Joint Commissioner or in their absence Commissioner’s be obtained to do market verification. Administrative authorities should also ensure that market verifications are expeditiously concluded and no harassment is caused to the Trade nor are any exports held up.
In exercise of the powers conferred by sub-section (2) of section 1 of the Companies (Amendment) Act, 2002 (1 of 2003), the Central Government hereby appoints the 6th day of February, 2003 as the date on which the provisions of the said Act shall come into force.
For the purposes of sub-rule (7) of rule 4, the expression “Selection Committee” means a committee, the majority of which shall consist of independent directors and an expert in the respective field from outside the company.
