January 14, 1993
The President/Executive Directors,
All Stock Exchanges
(Except Coimbatore & Meerut).
Contract notes, margins, timely settelement
Please refer to Ministry of Finance’s letter F.No.4/16/SE/91 dated August 19, 1991 regarding certain measures such as showing brokerage separately in contract notes, imposition of minimum daily margin of 25% on all shares in specified list, ensuring timely settlement and broad-basing of the governing boards, to be taken by the stock exchanges in the interest of long term growth of stock market and for ensuring investor protection. You were also required to submit periodical reports on implementation of these measures to SEBI as well as the Central Government.
In this connection, we have been requested by the Ministry of Finance to send them immediately a detailed report on the progress made by the stock exchanges on implementation of these directives. As SEBI has issued fresh directives vide its letter SMD-II.11615/92 dated 20.11.92, regarding the composition of the governing board, etc., you are requested to send to us the progress report on implementation of the remaining directives, viz., showing brokerage separately in contract notes, minimum margin of 25% on shares in specified list and ensuring timely settlement as well as the steps taken by the stock exchanges to implement SEBI’s directives of 20.11.1992 referred to above. The above information may be forwarded by fax/telex on an urgent basis.
Kindly treat this as most urgent.
(S. T. GERELA)