Chief General Manager
Market Intermediaries Regulation
& Supervision Department
January 20, 2004
The Executive Director/Managing Director The Stock Exchange, Mumbai/National Stock Exchange of India
Sub: Participation of Banks in Interest Rate Derivatives Market
In view of the amendment made to sub-rule (4) of rule 8 of Securities Contracts (Regulation) Rules, 1957 vide GSR 696 (E) dated 28th August 2003, permitting banks to participate in interest rate derivatives market, the undersigned has been authorised to direct the stock exchanges to amend their bye-laws, as under:
“Any bank, –
included in the Second Schedule to the Reserve Bank of India Act, 1934, the Export Import Bank of India, established under the Export and Import Bank of India Act, 1981, the National Bank for Agriculture and Rural Development, established under the National Bank for Agriculture and Rural Development Act 1981, the National Housing Bank, established under the National Housing Bank Act, 1987,-are eligible to become member of an exchange, on the recommendation of governing body of the exchange.
2.Such bank can act as member only for their proprietary dealings, to act on their own account, in the interest rate derivatives market.
3.Such bank can not act as member or an agent for any other person, client or customer in any segment of exchange.
4.Such bank shall abide by circulars, directions issued by RBI and SEBI in respect of dealing of such banks in the exchange.”
Hence, you are advised to, –
Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately.
Bring the provisions of this circular to the notice of members of the Exchange and also disseminate the same on the website, if any.
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 January 2004.
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.
(M. S. Sahoo)
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018