Securities and Exchange Board of India
MAPIN/ Cir–37/2004
October 27, 2004
1 The Executive Directors/Managing Director/Administrators of All Stock Exchanges
2. All Registered
2.1. Mutual Funds
2.2. Foreign Institutional Investors
2.3. Custodians of Securities
2.4. Foreign Venture Capital Investors
2.5. Collective Investment Schemes
3. Association of Mutual Funds in India (AMFI)
Dear Sir/Madam,
Sub: SEBI (Central Database of Market Participants) Regulations, 2003
1. The SEBI (Central Database of Market Participants) Regulations, 2003 were notified on November 20, 2003 and subsequently amended vide SEBI (Central Database of Market Participants) (Amendment) Regulations, 2004 notified on July 21, 2004.
2.Pursuant to clause (g-) of sub regulation (1) of Regulation 2 of the captioned Regulations, SEBI has appointed the National Securities Depositories Limited (NSDL), as the Designated Service Provider for the purpose of the said Regulations.
3. Further, under Regulation 2 (1) (v) read with Regulation 6 of the captioned Regulations, SEBI is empowered to notify ‘specified investors’. SEBI vide notification dated July 30, 2004 has already notified certain categories of investors as specified investors.
4. In continuation of the above, pursuant to the notification dated September 28, 2004 issued under the captioned Regulations, SEBI has, interalia, specified as under:
4.1 . All resident investors not being bodies corporate who enter into any securities market transaction (including any transaction in the primary market or secondary market in any listed securities and any transaction in units of mutual funds or collective investment schemes) of value of one lakh rupees or more, as ‘specified investors’, who are required to obtain a UIN before March 31, 2005.
4.2. Foreign institutional investors, sub-accounts and foreign venture capital investors as ‘specified investors’ who are required to obtain a UIN before March 31, 2005.
5.The aforesaid specified investors, who are required to obtain a UIN under the said Regulations, may contact NSDL or any Point of Service (POS) mentioned in the Annexure for the purpose of making an application.
6. While making the application,
6.1. it is mandatory for the applicant who is a natural person to provide biometric impressions of the left thumb, left index finger, right thumb and right index finger and photograph electronically on the system of the Designated Service Provider.
6.2. an applicant shall ensure that he furnishes correct and true information. Attention is invited to Regulation 15 which prohibits a person from making a false statement or misrepresentation of any fact in any application made to the Designated Service Provider and Regulation 20 which specifies the action for false information.
7. Please note that with effect from April 1, 2005, according to the provisions of
7.1. sub-regulation (1) of regulation (6) of the captioned regulations, no specified investor not being a body corporate shall buy, sell or deal in any securities which are listed on any recognized stock exchange or in units of a mutual fund or a collective investment scheme or subscribe to securities which are proposed to be listed in any recognized stock exchange or units of a mutual fund or a collective investment scheme unless such specified investor has been allotted a UIN by March 31, 2005.
7.2. sub-regulation (3) of regulation 6 of the captioned regulations, no specified investor being a Foreign Institutional Investor, a sub-account or a Foreign Venture Capital Investor shall buy, sell or deal in any securities which are listed on any recognized stock exchange or in units of a mutual fund or a collective investment scheme or subscribe to securities which are proposed to be listed in any recognized stock exchange or units of a mutual fund or a collective investment scheme unless such specified investor, has been allotted a UIN by March 31, 2005.
8. It may also be noted that the specified investors after being allotted UIN have the continuing obligation to intimate changes, if any, in the particulars submitted to the MAPIN Database within 30 days.
9. Contravention of the above would invite action as specified in Regulation 19 of the captioned Regulations.
10 The SEBI Regulations, Notifications and application forms are available on the SEBI Website www.sebi.gov.in as also on the NSDL website http://mapin.nsdl.com.
11 . The stock exchanges are advised to,
11.1 .make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decisions immediately, as may be applicable.
11 .2.bring the provisions of this circular to the notice of the member brokers/ clearing members/ sub-brokers of the Exchange and also to disseminate the same on the website.
11 .3.communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of October 2004.
12. The mutual funds are advised to,
12.1.report the status of compliance to the provisions of this circular to SEBI in all the Compliance Test Reports as well as the Half Yearly Trustee Reports.
12.2.bring the provisions of this circular to the notice of the investors of the mutual fund and also to disseminate the same on the website.
1 3. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully,
V S SUNDARESAN
