Requirement of Fee Clearance and NOC – Non applicability in respect of certain category of members of stock exchanges
Summary
This circular exempts specific categories of stock exchange members from obtaining NOC and fee clearance for certain corporate actions. The exemption applies to trading and clearing members in derivatives segments and cash segment stock brokers under Schedule III A of the 1992 Regulations. Stock brokers under Schedule III remain subject to these requirements, and exchanges must implement these changes by February 28, 2010.
Text
members of the stock exchanges are required to obtain ‘NOC’ from SEBI through the respective stock exchanges before claiming refund of excess Base Minimum Capital from the stock exchange.
members of the stock exchanges are required to obtain ‘fee clearance’ from SEBI through the respective stock exchanges for change in shareholding pattern without change in control, issue and redemption of preference shares, issue of bonus shares, and change in directors other than designated / whole time directors.
the above referred provisions of the aforesaid circulars shall, henceforth, be not applicable to trading members and clearing members in the equity derivatives and currency derivatives segments.
the above referred provisions of the aforesaid circulars shall, henceforth, be not applicable to stock brokers in the cash segment who are covered under Schedule III A [payment of fees by stock brokers] of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992.
the above referred provisions of the aforesaid circulars shall, henceforth, be not applicable to stock brokers in the cash segment who may migrate to Schedule III A [payment of fees by stock brokers] of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 in future.
the stock brokers who are covered under Schedule III [payment of fees by stock brokers] of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 will be required to comply with the above referred provisions of the aforesaid circulars.
issue necessary instructions to bring the provisions of this Circular to the notice of their constituents and also disseminate the same on their websites.
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above.
communicate to SEBI, the status of the implementation of the provisions of this Circular by February 28, 2010.
This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and shall come into effect from the date of this Circular.
Source: SecMarx — Requirement of Fee Clearance and NOC – Non applicability in respect of certain category of members of stock exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.