Clarification regarding admission of Limited Liability Partnerships as members of Stock Exchanges
Summary
SEBI clarifies that Limited Liability Partnerships (LLPs) may be admitted as members of stock exchanges. This permission is granted because LLPs are akin to Limited Liability Companies and partnership firms under the Securities Contract Regulation Rules, 1957. Stock exchanges must ensure LLPs comply with existing membership conditions and amend their bye-laws accordingly.
Text
LLPs are akin to LLC and partnership firms eligible for stock exchange membership under Rule 8 of SCRR.
Stock Exchanges may consider granting membership to LLPs subject to complying with conditions in Rule 8(4A) of SCRR.
Bring the provisions of this clarification to the notice of the Stock Brokers and disseminate the same on their websites.
Make necessary clarificatory amendments to the relevant bye-laws, rules and regulations for implementation in coordination with one another.
Source: SecMarx — Clarification regarding admission of Limited Liability Partnerships as members of Stock Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.