SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
August 14, 1998
The President/Executive Director/Managing Director
of all Stock Exchanges
Sub : Recovery of outstanding fees from defaulting members
This has reference to our circular no. SMD/AA/SU/1939/96 dated May 21, 1996 on the above subject.
It has been observed that most of the stock exchanges are yet to make a provision in the bye-laws regarding the use of auction proceeds, whereby claims of SEBI would be treated on par with the claims of the exchange and the clearing house, as mentioned in the circular under reference.
The Exchanges, who are yet to incorporate the above provision in their bye-laws are therefore advised to take up the matter in their Governing Board meeting for consideration and make suitable amendment in the bye-laws without any further delay under advice to us. Those Exchanges who have already incorporated the said provision in their bye-laws may intimate us accordingly.
M. D. PATEL