Securities and Exchange Board of India
Chief General Manager
Secondary Market Department
SMD/NDC/ MSS/3998/2003
March 11, 2003
To
All Stock Exchanges
Sub: Cancellation of Certificate of Registration and Issue of No Due Certificate.
This is issued to streamline the process of cancellation of registration certificates granted to brokers under Regulation 6 of the SEBI (Stock-brokers and Sub-brokers) Regulations, 1992 in case of surrender of membership. In case the rules / bye-laws of your exchange provide for surrender of membership and you accept such surrenders after following due process, you are requested to follow the following procedure for the purpose of cancellation of certificate of registration.
2. You should send a communication to SEBI requesting for issue of “No Due Certificate” and cancellation of certificate of registration of the broker, with a confirmation that as on the date of communication,
a. the broker, as a member of your exchange, does not owe any amount to SEBI,
b. the broker has been disabled from trading on your exchange,
c.the broker is not connected with any of the defaulting members of any exchange,
d. the broker has submitted an undertaking to the exchange that he would be liable for all liabilities/obligations (including monetary penalties, if any) for violation of provision of the SEBI Act and the SEBI (Stock-brokers and Sub-brokers) Rules and Regulations, 1992.
e. no complaint / arbitration /disciplinary proceeding is pending against the broker, and
f. no investigation / inquiry by any exchange is pending against the broker.
This communication should be accompanied by
1. the original certificate of registration for cancellation (indemnity on stamp paper of appropriate value in case certificate is lost),
2. the turn over details in compliance with the circular dated September 30, 2002, as modified from time to time, and (iii) a confirmation on points (a) to (f).
3. Based on the information and documents available with SEBI, it may cancel the certificate of registration and issue No Due Certificate, subject to the condition that the broker / exchange remits the fees, that may accrue from the date of your communication till the date of cancellation of registration by SEBI and subject to furnishing an undertaking to pay any fees/interest to be payable by such member as and when called from by SEBI to pay . Until SEBI’s dues are fully paid, the security deposit of the member should not be released by the exchange.
Yours faithfully,
(M. S. Sahoo)
