SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMD/POLICY/CIR- /97
August 20, 1997
To,
The Executive Directors/ Managing Directors
of all Stock Exchanges.
Dear Sir,
SUB : Amendments to Procedure for operation of Bad Delivery Cell (BDC).
This is in continuation of SEBI’s previous Circulars No.: SMD/POLICY/BDC/4296/96 dated October 04, 1996 and SMD/POLICY/BDC/5547/96 dated December 09, 1996. It has been reported that in many cases of Company Objection due to fake/forged/stolen shares sent for rectification to the Introducing Member, a different set of similar quality of shares in lieu of these shares are being given by the Introducing Members, thereby perpetuating the problem.
It has therefore been decided that in cases of Company Objection due to fake/forged/stolen shares, the Clearing House/Clearing Corporation may compulsorily put the shares for Auction, and if necessary Close-out, and no opportunity for rectification may be given to the Introducing Broker.
Yours faithfully,
M.D. PATEL
EXECUTIVE DIRECTOR
cc:
a] Chairman’s Secretariat.
b] All Executive Directors, Division Chiefs and Regional Managers of SEBI.
c] All SEBI Nominee Directors on the Board of Exchanges.
d] All Division Chiefs requested to circulate to all their officers.
Note:
SMD Stock Exchange Administration Division to follow-up with the Exchanges for implementation of the decisions.
All the SEBI Nominee Directors on the Board of the Exchanges to follow-up the issues in the Board Meeting of the Exchanges.
