Meeting Of All Stock Exchanges
Summary
This circular outlines decisions from a December 1999 meeting regarding the revival of small stock exchanges, Y2K preparedness, and administrative freedoms. It permits stock exchanges to increase membership without SEBI approval provided legal requirements are met. Additionally, it mandates weekly reporting on vanishing companies and restricts elected directors from interfering in day-to-day management.
Text
The same could be maintained 25% in the form of cash and the balance 75% in irrevocable bank guarantees.
The exchanges will now have freedom to increase the membership or dealership subject to compliance of all the legal requirements, without the approval of SEBI.
the Elected Directors should not interfere in the day to day management of the exchange, particularly relating to surveillance and the risk management functions.
The Stock Exchanges shall set up necessary mechanism for evaluating the system and infrastructure of the applicant broker for ascertaining that the specification outlined in the SEBI Committee Report on Internet Trading, are adhered to.
All applications received in exchanges should be dealt with on top priority.
The Exchanges should submit the information regarding vanishing Companies as per the format prescribed by SEBI vide circular No PMD/OPG/AG/7827/99 dated March 05, 1999 on a weekly basis, to Primary Market Department of SEBI.
exchanges should set up a small cell for scanning the reports received from the companies for which it is a regional exchange and take action against companies where the funds are not used for the purpose for which it was raised.
Source: SecMarx — Meeting Of All Stock Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.