SEBI : Trading and settlement of trades in dematerialised securities

SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021

SMDRP/POLICY/CIR-9/2000

To:

The President/Executive Director/
Managing Director of all the Stock Exchanges/
NSDL/CDSL/Custodians/AMFI/RAIN

Dear Sir,

Trading and settlement of trades in dematerialised securities

Please refer to our earlier circulars on the subject advising inter alia the list of scrips for compulsory trading in dematerialized securities by all investors and the institutional investors viz., banks, mutual funds, domestic financial institutions, foreign institutional investors and overseas corporate bodies (OCBs).

It was decided that trading would be compulsory in dematerialized form by all investors in 380 scrips (annexure ‘A’) from the dates noted against each of them, i.e.

It was also decided that trading would be compulsory in dematerialized form by institutional investors in 567 scrips (annexure ‘B’) from the dates noted against each of them, i.e.

It has also been decided that the initial public offers (IPOs) for which draft prospectus has been filed with SEBI and comments not yet received and all future IPOs will be traded compulsorily in dematerialised form by all investors. The investors, however, will continue to have the option of holding securities upon allotment either in physical form or in demat form according to the provisions of the Depositories Act. This step while protecting the rights of the investors under the Act will also ensure that the risks to the investors on account of fake, forged certificates, on account of bad delivery and delays in transfer, etc are eliminated.

Yours faithfully,

P K KURIACHEN
DIVISION CHIEF
SECONDARY MARKET, DEPOSITORIES,
RESEARCH & PUBLICATIONS DEPARTMENT