February 22, 1996



Dear Sir,

Please refer to the minutes of the meeting of all the Executive Directors/Presidents/Managing Directors of Stock Exchanges convened by SEBI on December 20-21, 1995. You are advised to implement the following decisions taken in the said meeting:

i. It was decided that member-brokers not submitting audit reports for 1994-95 by January 31, 1995 would be penalised and suspended.

ii. Bombay Stock Exchange (BSE) which has a trading period for ‘B’ group shares of 12 days would reduce the same shortly to 9 days. The other stock exchanges would also consider reduction in the trading period which is presently 7 days.

iii. The Inter-Exchange Co-ordination Group of the Stock Exchanges would undertake the exercise of evolving uniform norms for good and bad delivery and for procedure of rectification of the bad deliveries.

In cases of bad delivery because of fake or stolen shares, it was decided that the buyer would send the bad delivery for rectification directly to the introducing broker through the concerned stock exchange and the exchange to which the introducing broker belongs would take the necessary action against the introducing member. The Stock Exchange to which the introducing broker belongs would ensure that the broker files the necessary First Information Reports (FIR) with the police. In other cases of bad delivery, however, the delivery would be sent for rectification to the first introducing member of the same exchange.

iv. It was decided that the Inter-Exchange Co-ordination Group would simplify the “Client Registration Form” circulated by SEBI to the Stock Exchanges sometime ago taking into account the one being used by OTCEI.

v. In case of new issues, the stock exchanges decided that they would reach an agreement whereby every exchange would grant listing permission to the company’s share individually, but would allow trading only after the shares are granted listing permission by all stock exchanges named in the prospectus for enlisting of shares.

The status of implementation of the above decisions should be reported to SEBI in the monthly D.O. Letters or by way of special letters.

Yours faithfully,
sebi press_logo Circular

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