SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
February 23, 1998
The Presidents/ Executive Directors/ Managing Directors
of all Stock Exchanges.
Sub : REGISTRATION OF BROKERS.
Recently we have come across certain cases while granting registration to brokers, where investor complaints were pending for long against the transferor members. In accordance with Rule 4(e) of SEBI Stock-Brokers and Sub-brokers Rules ,1992 a member seeking registration is required to take adequate steps for redressal of grievances of the investors. You are therefore advised to ensure that adequate steps are taken to redress all complaints pending against the transferors and especially serious and long pending complaints before forwarding the applications to us for registration in cases of transfer/conversion.
The recommending certificate of the Stock Exchange while forwarding the application should also include a statement to the effect that “no complaints/ arbitration cases are pending against the transferor”