SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMD/Policy/Cir-10/98
March 04, 1998
To
The President/Executive Directors/Managing Directors
of all the Stock Exchanges
Dear Sir,
Sub: Transfer of Affiliation of sub-brokers on Corporatisation of Individual Brokers.
Recently, as you are aware, some member brokers of your exchange have corporatised their memberships and accordingly applied to us for their SEBI Registration. We have completed the work of granting registration to the corporate members. Consequently, all sub-brokers affiliated to those member brokers who have corporatised their cards, will also need to apply to SEBI for transfer of their affiliation. There has not been enough flow of applications for transfer of affiliation from sub-brokers, in light of the above requirement as perhaps they may not be aware of the requirement. You are therefore advised to inform your brokers/sub-brokers about the need to transfer of affiliation consequent to corporate conversion. The following documents are required to be submitted to us for change in affiliation.
1. Form B, as required by Regulation 11(1) of SEBI (Stock Brokers & Sub-Brokers) Rules & Regulation 1992, duly recommended by the exchange.
2. Form C, as required by Regulation 11(2) of SEBI (Stock Brokers & Sub-Brokers) Rules & Regulation 1992, duly recommended by the new affiliated broker.
3. A copy of agreement with affiliated new broker.
4. NOC from the original affiliated broker and statement stating that he takes over all liabilities of the previous entity.
5. Original Certificate of Registration of the sub-broker.
Besides the above requirement, you are advised to check that, the annual fees due are paid at the time of receipt of application for transfer of affiliation from the sub-broker and accordingly collect the dues and forward it to SEBI After having received the above documents, we would change the name of the affiliated broker on the old certificate. While the registration number of the sub-broker would remain the same, the account coding system which we have, to reflect the affiliated brokers identity would change. No fresh fees would be charged for the change in affiliation.
Yours faithfully,
M.D.PATEL
EXECUTIVE DIRECTOR
