Market regulator Securities and Exchange Board of India asked bourses on Wednesday to preserve original records related to an investigation till the trial is over instead of the current practice of keeping the papers only for five years. “. the respective original is to be maintained till the trial or investigation proceedings have concluded,” market regulator Sebi said in a circular to all stock exchanges.
The regulator said enforcement agencies like the Central Bureau of Investigation, police and the crime branch collect copy of the documents during the course of the investigation but original records, either in physical or electronic form, are required at the time of the trial, Sebi said.
According to the Sebi (Stock Brokers and Sub-brokers) Regulations, 1992, every stock broker is required to preserve the specified books of account and other records for a minimum period of five years.
In case such documents are maintained in electronic form, provisions of Information Technology Act, 2000, would have to be complied with, Sebi said.
Further, as per the Securities Contracts (Regulation) Rules, 1957, bourses and their members are required to preserve the specified books of account and documents for a period ranging from two years to five years.