SECURITIES AND EXCHANGE BOARD OF INDIA
PRIMARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
RRTI CIRCULAR NO.2(98-99) PMID/ DRK/CIR /98/4155.
December 17, 1998.
To:
All Registered Registrars to an Issue
and /or Share Transfer Agents
Dear Sir/Madam,
Sub: Y2K PREPAREDNESS PROJECT
The Year 2000 problem poses a significant challenge for the securities market and other related activities. Failure to address this issue in timely manner would cause operational problems to all the institutions operating in the securities market, even to the extent of disruption of financial markets. As a result it is imperative that all the agencies operating in the securities market, either directly or indirectly, should take necessary steps to ensure that the problems and disruptions due to Year 2000 bug are minimized.
In this regard, questionnaire were sent to all Registrars to an Issue/Share Transfer Agents on September 19, 1998 and a reminder was sent on October 15, 1998. It is observed that many Intermediaries have not responded and in some cases their system is not Y2K compatible. It is advised that all Registrars to an Issue/Share Transfer Agents shall ensure that their system is Y2K compatible on or before June 30, 1999 and a compliance report shall be submitted to SEBI on or before July 15, 1999. If the Intermediary is working on the project, they are advised to submit a monthly progress report from April, 1999 onwards and should ensure that their system is Y2K compatible within the period as stated above. The monthly progress report should be submitted within 10 days from the end of the month.
If the system is not Y2K compatible within the cut off date mentioned above, SEBI shall be constrained to take a serious view.
Please acknowledge receipt.
Yours faithfully,
D.RAVIKUMAR
DIVISION CHIEF
