Securities and Exchange Broad of India
N. PARAKH
CHIEF GENERAL MANAGER
DNPD/Cir-32/2006
February 15, 2006
To
The Managing Director of NSE, BSE and their Clearing House / Corporation
Dear Sir,
Sub: Clarification to Circular No. DNPD/Cir-31/2006 dated January 20, 2006
This is in continuation with SEBI circular No. DNPD/Cir-31/2006 dated January 20, 2006 prescribing the eligibility criteria for the introduction of derivatives on stocks of companies undergoing corporate restructuring.
It is clarified that if a post restructured company comes out with an Initial Public Offering (IPO), then the same prescribed criteria as currently applicable for introduction of derivatives on a company coming out with an IPO may be applied for introduction of derivatives on stocks of the post restructured company from its first day of listing.
This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of the Securities Contract (Regulation) Act, 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours sincerely,
(N. PARAKH)
