Deputy General Manager
Corporation Finance Department
Division of Issues and Listing
( (Board) : 22850451- 56 , 22880962 – 70 (Extn. : 367)
Fax : 22045633
Email : firstname.lastname@example.org
November 20, 2003
The Executive Director / Managing Director/ Administrators
All Stock Exchanges
Dear Sir / Madam,
Sub: Reduction in Notice Period for fixing the Book closure/Record date
Please refer to the earlier circular of ref. no. SMDRP/CIR-07/99 dated April 09, 1999, wherein it was provided that listed companies have to give prior intimation of 30 days to the stock exchanges, about their book-closure / record date for dematerialised securities and a notice period of 42 days in case of securities in physical form. The stock exchanges were advised to make the necessary amendments in the listing agreement and bye-laws.
SEBI has been receiving representations from various quarters for the reduction of the notice period further. In view of the major structural changes/developments in the secondary markets, SEBI has decided to reduce the notice period further in phases to ensure that there is minimum discomfort to the market players.
In the first phase, the said notice period may be reduced to 15 calendar days in case of demat scrips and to 21 calendar days in case of physical scrips. SEBI would consider further reduction in the notice period after seeking feedback from the market place.
Accordingly, all the stock exchanges are advised to implement the decisions immediately and make necessary amendments to the bye-laws and listing agreement wherever necessary. The exchanges are also directed to bring the provisions of this circular to the notice of the member brokers/clearing members of the exchange and also to put up the same on the website for easy access to the investors.
This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956, to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.