SECURITIES AND EXCHANGE BOARD OF INDIA
SMDRP/POLICY/CIR-38/2000
AUGUST 18, 2000
To,
All Stock Exchanges/Depositories/Custodians and AMFI/RAIN
Dear Sirs,
Trading and settlement of trades in dematerialised securities
Please refer to our earlier circular no. SMDRP/Policy/cir-23/2000 dated May 29, 2000 advising inter alia the list of companies for compulsory settlement of trades in dematerialised form for all investors. Some of the companies however have not been able to sign agreements and establish connectivity with both the depositories well on time so that trading in compulsory dematerialized form could be commenced from the stipulated date.
It is therefore, decided that all those companies which are included in the compulsory list for dematerialized trading but have failed to sign agreements and establish connectivity with both depositories, on the stipulated date, would be given one more month’s time to sign an agreement and establish connectivity. In case any company fails to sign the agreements and establish connectivity with the depositories within the extended time, the shares of such companies shall be traded only on “trade for trade settlement” window of the exchanges from that date.
Out of the 332 scrips which were to be (Serial No. 301 to 632 of annexure A of the circular dated May 29, 2000) included in the list for compulsory settlement of trades in dematerialized form by all investors with effect from August 28, 2000, 77 scrips (as per annexure A) of these companies have so far not signed agreements and established connectivity with both the depositories well on time or are in the process of doing so. Accordingly, it has been decided that the effective date for compulsory trading by all investors in dematerialized form for these scrips would be postponed to the next effective scheduled date of September 25, 2000.
Please also refer to SEBI circular no. SMDRP/POLICY/CIR-27/2000 dated July 11, 2000, advising postponement of the effective date for compulsory dematerialized trading in respect of 38 scrips from July 24, 2000. These 38 scrips (as per annexure B) would now be traded compulsorily in dematerialized form effective from September 25, 2000.
In case any of the companies included in annexure A & B fail to sign the agreements and establish connectivity with the depositories within the extended time i.e. September 25, 2000, the shares of such companies shall be traded only on “trade for trade settlement” window of the exchanges from that date.
Further, it has been decided that the scrips of the following companies would be excluded from the compulsory list for trading in dematerialized form:
1. State Bank of Bikaner & Jaipur (serial no. 1408)
2. State Bank of Travancore (serial no. 2264) 3. State Bank of Mysore (serial no. 2511)
Yours faithfully,
P. K. KURIACHEN
Encl.: Annexure A and B
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