SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, B Wing, First Floor,
224, Nariman Point, Mumbai 400 021
SUB-BROK/CIR/02/2001
The President/Managing Director/Executive Director
All stock exchanges.
Dear Sir,
SUB : Intimation to the brokers to permit their sub-brokers to start business only after receipt of sub-broker registration certificate from SEBI.
As per Section 12(1) of the SEBI Act, 1992 read with Rule 3 of Securities and Exchange Board of India (Stock Brokers and Sub-Brokers ) Rule 1992, no sub broker shall buy, sell, deal in securities, unless he holds a certificate granted by the Board under the Regulations. It has been brought to our notice that sub-brokers start their business with their recommending brokers without obtaining certificate of registration from SEBI, by just making an application to their brokers/stock exchanges. In this regard, you are advised to inform all the brokers that their sub-brokers are permitted to start business only after clearance and receipt of registration certificate from SEBI. If any person contravenes or attempts to contravene or abets the contravention of the above said rule, shall be punishable under section 24(1) of SEBI Act 1992.
The above may be brought to the notice of all your members for necessary compliance with immediate effect.
Yours faithfully,
