Securities and Exchange Board of India
DEPUTY GENERAL MANAGER
Market Regulation Department
E-mail: [email protected]
SEBI/MRD/SE/Cir-38/2003
October 8, 2003
The Executive Directors / Managing Director/Administrators
Of All Stock Exchanges
Dear Sir / Madam,
Sub:- Introduction of new trading segments.
1. It has been observed during the course of the inspection of the stock exchanges that some new trading segments had been introduced by some of the exchanges. In this regard, it has now been decided that the exchanges shall seek the prior approval of SEBI for the introduction of any new trading segment on the stock exchange.
2. While applying to SEBI for the approval for the introduction of new segment, the exchange shall provide the information on the parameters for the new segment and also the rationale for introduction of the new segment.
3.The Stock Exchanges are directed to
3.1. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable.
3.2. bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website.
3.3. communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of October 2003.
4. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Section 10 of the Securities Contracts (Regulation) Act 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully,
V S SUNDARESAN
