SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021

SMD-I/POLICY/CIR-40/99
December 16, 1999

To,

The Executive Directors/Managing Directors Of all the Stock Exchanges
Dear Sir/Madam,

Floating of a subsidiary/company by a Stock Exchange to acquire the membership of other Stock Exchange

Please refer to our circular no. SMD-II/POLICY/CIR-37/99 dated November 26, 1999 whereby the Exchanges were permitted to promote a subsidiary/float a company to acquire membership rights of other Stock Exchange subject to fulfillment of certain conditions as stipulated therein.

It was stipulated as one of the conditions in the above circular that the subsidiary/company shall be 100% owned by the Stock Exchange promoting/floating such subsidiary/ company. In this respect it is clarified that for the purposes of fulfillment of this condition the Exchange and its members shall together hold 100% in nominal value of the equity share capital of the subsidiary/company with exchange holding not less than 51% in nominal value of the equity share capital of the subsidiary/company. Accordingly, the above mentioned condition stands modified to this effect.

All other conditions stipulated in the above circular remain in force.

Yours faithfully,
P.K.BINDLISH
Division Chief
Secondary Market, Depository,
Research & Publications Department
e-mail : pkb@sebi.gov.in

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