Ease of Doing Business: Text on Contract Note with respect to Fit and Proper status of shareholders
Summary
SEBI has relaxed the requirement for stock exchanges to publish full text regarding 'fit and proper' status on contract notes. The Master Circular is amended to allow a reference to the applicable regulations via URL instead of the full text. Stock exchanges are instructed to amend their bye-laws and disseminate this change to members immediately.
Text
the requirement to publishing the text of Regulation 19 of the SCR(SECC) Regulations, 2018 on the contract notes is no longer required and Clause 2.4.2.2.2 under Chapter 6 of the Master Circular (Stock Exchanges and Clearing Corporations) dated October 16, 2023 stands amended as under: “In the post listing scenario, in lieu of text only a reference of the applicable regulation with regard to fit and proper (by mentioning the URL/weblink of Regulation 19 and 20 of the SCR(SECC) Regulations, 2018) shall be made part of the contract note.”
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be necessary/applicable.
bring the provisions of this circular to the notice of their members and to disseminate the same on their website.
communicate to SEBI the status of implementation of the provisions of this circular in the Monthly Development Report.
Source: SecMarx — Ease of Doing Business: Text on Contract Note with respect to Fit and Proper status of shareholders. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.