August 27,1996


The Executive Directors
of all Stock Exchanges at
Mumbai, Ahmedabad, Calcutta, Bangalore,
Bhubaneshwar, Cochin, Coimbatore, Delhi,
Gauhati, Hyderabad, Jaipur, Ludhaina,
Indore, Madras, Patna, Mangalore, Pune,
Rajkot, Kanpur & Vadodara.

The Managing Director
of the NSEI and OTCEI.

Dear Sir,

Certain important matters to be reviewed at every Board Meeting.

The Securities and Exchange Board of India had convened a meeting of all the Stock Exchanges during December 20-21, 1995 and a meeting of the Executive Committee of Inter-Exchange Co-Ordination Group of the Stock Exchanges on August 09, 1996. It has been observed during these meetings that the progress made by most of the Exchange in the following important matters are not satisfactory and therefore these matters need to be addressed at every Board meeting of all the Stock Exchanges on a continuous basis :

1. Computerization Programme of the Exchange and the progress made in this regard. (Applicable to Exchanges who have not started screen based trading ).

2.Action taken by the Exchanges for redressal of Investors’ complaints against Brokers.

3. Action taken by the Exchanges for quick disposal of arbitration cases which are pending beyond the time prescribed as per the Rules/Byelaws/Regulations of the Exchange.

4. Implementation of suggestion/recommendations given in the latest Inspection Report of SEBI.

5. Functioning of Surveillance Department.

6. Review of the percentage of delivery to total turnover and action taken proposed to improve the percentage of delivery to turnover.

7. Action taken by Exchanges to set up Clearing House(if not already set up) and to route all the securities through the Clearing House. In case of Exchanges planning to set up Clearing Corporation, the steps taken to set up a clearing Corporation which shall guarantee all the counter party trades.

8. Action taken by the Exchange to implement the decisions taken in the meeting of the Executive Committee of Inter-Exchange Co-ordinate Group and the directions given by SEBI through circulars from time to time.

9. Functioning of Bad Delivery Cell.

The Executive Directors/Managing Directors of all the Exchanges are requested to take note of the above and ensure that these matters are placed in the Board Meetings along with all the relevant details in this regard.

A compliance report on the implementation of the above may be sent to SEBI by October 31, 1996.

Yours faithfully,

cc: 1.All Sr.Eds/EDs and Regional Managers of NRO , ERO & SRO.

2.All SEBI Officers who are directors on various SEs.

3.All PRs on all SEs.

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