SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMDRP/POLICY/CIR-38/98
December 10, 1998
The President/Executive Director/
Managing Director of all the Stock Exchanges/
NSDL/CDSL/AMFI/All Custodians
Dear Sir,
Trading and settlement in dematerialised securities
Please refer to our circular no. SMDRP/POLICY/CIR-32/98 dated November 9, 1998, on the subject advising inter alia the list of scrips for compulsory delivery by all investors in dematerialised form.
1. It has now been decided that effective from April 5, 1999, delivery of shares in dematerialised form by all investors is compulsory for 29 more companies as given in annexure ‘A’.
2. Stock exchanges shall not accept delivery of shares in physical form in the scrips for which delivery of shares in dematerialised form is made compulsory for all investors. Member brokers may be advised to inform their clients that failure to effect delivery in dematerialised form shall entail like consequences as applicable while marking short in physical segment at present.
3. Stock exchanges which have not established connectivity with the depository for dematerialised trading may continue to accept delivery in physical form for the scrips announced for compulsory delivery by all investors in dematerialised form, till such time the exchange establishes connectivity with the depository or July 1, 1999, whichever is earlier.
4. The following four companies which were included in annexure ‘A’ of our circular no. SMDRP/POLICY/CIR-27/448/98 dated September 24, 1998 for compulsory dematerialised trading by institutional investors and OCBs from December 15, 1998 are in the process of completing the formalities with the depository for dematerialised trading.
Bharat Earth Movers Ltd.
Garware Polyester Ltd.
Indian Shaving Products Ltd.
ITC Agro-Tech Ltd.
It has therefore been decided to postpone the date for compulsory dematerialised trading in these scrips by institutional investors and OCBs to a date which would be announced after they complete the formalities.
5. In respect of the procedure to be followed by stock exchanges, for despatch of certificates in case of further issues like bonus, rights etc, when credit is given to the depository also, it is clarified that the stock exchanges shall obtain a certificate from the issuer company that the credits in the depository have been effected and the despatch of physical certificates have been completed, before granting listing permission for the further issues.
Yours faithfully,
K. KURIACHEN
DIVISION CHIEF
SECONDARY MARKET, DEPOSITORIES,
RESEARCH & PUBLICATIONS DEPARTMENT
