Deputy General Manager
Market Regulation Department
Tel: 2284 5355 Fax: 2284 5761
August 22, 2003Online GST Certification Course by TaxGuru & MSME- Click here to Join
The Executive Directors/Managing Director/Administrators Of All the Stock Exchanges
Sub: Access to unauthorized persons by the members of subsidiaries
1. It has been brought to the notice of SEBI that some of the members of the exchanges who are sub-brokers of the subsidiary companies formed by the stock exchanges have been providing unauthorized access to persons for illegal trading and/or providing their own terminal for illegal trading.
2.The stock exchanges which have formed subsidiaries are hereby directed to note that appropriate penal action including fine, suspension of trading rights of the subsidiaries/sub-brokers, etc., would be initiated, in case, any of the members of the exchange who are sub-brokers of the subsidiary is found to be indulging in such type of activities referred to at paragraph 1. The exchanges are also directed to exercise vigilance and surveillance on their subsidiaries/its members to ensure that the members do not indulge in these types of activities.
3. The stock exchanges are advised to communicate to SEBI immediately, the steps taken by them in this regard as well as in the Monthly Development Report commencing from the month of August 2003.
V S SUNDARESAN