Master Circular on Surveillance of Securities Market
Summary
This part introduces the Master Circular on Surveillance of Securities Market, compiling operational circulars from the Integrated Surveillance Department. It establishes that in case of inconsistency, the content of the relevant underlying circular shall prevail over this compilation. The section also outlines initial trading rules regarding dematerialized shareholding requirements and addresses issues related to unauthenticated news circulated by market intermediaries. This section directs SEBI Registered Market Intermediaries to implement internal controls and restrict employee circulation of unverified rumors. It outlines disclosure requirements under the SEBI (Prohibition of Insider Trading) Regulations, 2015, including codes of fair disclosure and conduct. Additionally, it details reporting obligations for Code of Conduct violations and the implementation of system-driven disclosures for trading activities. This section provides standardized formats for disclosures under the SEBI (Prohibition of Insider Trading) Regulations, 2015. It includes Form A for initial disclosures of securities and open interest held by specified persons. It also includes Form B for disclosures upon
Text
Securities and Exchange Board of India (SEBI) from time to time, has been issuing various circulars for effective surveillance of the securities market.
In order to enable the users to have an access to all the applicable circulars at one place, the Master Circular on Surveillance of Securities Market has been prepared.
This Master Circular is a compilation of the circulars issued by Integrated Surveillance Department, which are operational as on date of this circular.
In case of any inconsistency between the Master Circular and the applicable circulars, the content of the relevant circular shall prevail.
This Master Circular is available on the SEBI website at https://www.sebi.gov.in/ under the category “LegalMaster Circulars”.
In order to moderate sharp and destabilizing price movements in shares of companies, to encourage better price discovery and to increase transparency in securities market, SEBI in consultation with Stock Exchanges has decided to adopt following measures:-
The securities of all companies shall be traded in the normal segment of the exchange if and only if, the company has achieved at least 50% of non- promoters holding in dematerialized form by October 31st 2010.
The securities of companies shall be traded in the normal segment of the exchange if and only if, the company has achieved 100% of promoter’s and promoter group’s shareholding in dematerialized form latest by the quarter ended December 2011 as reported to the stock exchanges.
Such exemption shall be applicable in cases where Promoter(s) have sold their shares in physical mode and such shares have not been lodged for transfer with the company; or Matters concerning part/entire shareholding of promoters/promoter group are sub judice before any Court/Tribunal; or Shares cannot be converted into demat form due to death of any promoter(s); or Shares allotted to promoter(s) that await final approval for listing from stock exchange and such pendency is less than 30 days or shares that upon receipt of final listing approval from stock exchange are pending conversion to demat and such pendency is less than 15 days.
For availing such exemption, companies shall approach Stock Exchange(s) along with necessary documentary evidence.
In all cases, wherein the companies do not satisfy the above criteria, the trading in securities of such companies shall take place in trade for trade segment.
In the following cases (except for the original scrips, on which derivatives products are available or included in indices on which derivatives products are available) the trading shall take place in TFT segment for first 10 trading days with applicable price band while keeping the price band open on the first day of trading.
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Source: SecMarx — Master Circular on Surveillance of Securities Market. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.