SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
The President/Executive Director/ Managing Director of all the Stock Exchanges and Depositories.
Trading and settlement of trades in dematerialised securities
Please refer to our circular no. SMDRP/Policy/Cir-9/2000 dated February 16, 2000, on the subject advising inter alia the list of scrips and the scheduled dates for compulsory trading in dematerialized securities by all investors and the institutional investors viz., banks, mutual funds, domestic financial institutions, foreign institutional investors and overseas corporate bodies (OCBs).
Based on the recommendations of the Working Group on dematerialisation and rolling settlement, it has been decided that scrips which are given in serial number 122 to 240 of annexure ‘A’ to the above circular would be compulsorily traded in dematerialized form by all investors and also included in compulsory rolling settlement effective from May 8, 2000 and further that these companies would be given time up to March 31, 2000, to sign agreements with both the depositories i.e. National Securities Depository Limited and Central Depository Services (I) Limited. The stock exchanges are therefore directed under Section 11 and 11B of the Securities and Exchange Board of India Act, 1992, to temporarily suspend trading of shares of the defaulting companies till they sign/execute necessary documents with the depositories.
Similar action should be taken against other companies, included in the aforementioned list, which do not sign/execute necessary documents with both the depositories and establish connectivity on time, as a result of which the schedules as per the aforementioned circular are not adhered to.
P K KURIACHEN
SECONDARY MARKET, DEPOSITORIES,
RESEARCH & PUBLICATIONS DEPARTMENT
Ph: 282 2333