SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, B Wing, First Floor,
224, Nariman Point, Mumbai 400 021
SMDRP/Policy/Cir-41/2001
August 09, 2001
The Executive Directors/ Managing Directors Of all the Stock Exchanges
Dear Sir/Madam,
Sub: Eligibility for trading member
We have received representations from many of the subsidiaries of the stock exchanges to permit these subsidiaries to become trading member for the derivatives segment of the BSE and the NSE.
In this respect, you are advised that it has been decided to grant permission to these subsidiaries of the stock exchanges to become trading and or clearing members of the derivatives segment on fulfilling the eligibility criteria laid down by the exchanges and prescribed under the SEBI (Stock Broker and Sub-Broker) Regulations subject to the following conditions:
a.All the risk containment measures laid down by SEBI shall be followed by these subsidiary companies and
b.These subsidiaries shall not undertake proprietary trade.
Yours faithfully,
P K Bindlish
General Manager
Secondary Market Depository,
Research & Publications Department
e-mail : pkb@sebi.gov.in
