Maintenance of books of accounts and other documents - SEBI - SEBI/MRD/SE/Cir-15/2005

GENERAL MANAGER Market Regulation Department Division of Policy SEBI/MRD/SE/Cir-15/2005 August 4, 2005 The Executive Directors / Managing Director/ Administrators of All Stock Exchanges Dear Sir / Madam, Sub: Maintenance of books of accounts and other documents 1. In terms of Rules 14 and 15 of Securities Contracts (Regulation) Rules, 1957 (hereinafter referred to as SCRR, 1957), every recognized stock exchange and its members are required to maintain and preserve the specified books of account and documents for a period ranging from two years to five years. Further, as per regulation 18 of SEBI (Stock Brokers Sub-brokers) Regulations, 1992 (hereinafter referred to as Stock Broker Regulations), every stock broker shall preserve the specified books of account and other records for a minimum period of five years. 2. It is noticed that enforcement agencies like CBI, Police, Crime Branch etc. have been collecting copies of the various records/documents during the course of their investigation. These original documents both in physical form and electronic form would be required by such enforcement agencies during trial of the case also. 3. In view of the above, not withstanding anything contained in SCRR, 1957 and the Stock Broker Regulations, you are advised to preserve the originals of the documents, both in electronic and physical form, copies of which have been taken by CBI, Police or any other enforcement agency during the course of any investigation till the trial is completed. 4. All the Stock Exchanges are advised to:- a) implement the above with immediate effect by making necessary amendments to the bye-laws and Listing Agreement, as applicable ; b) to bring the provisions of this circular to the notice of their members of the exchange and also to put up the same on the website; and c) communicate to SEBI the status of the implementation of the provisions of this circular and the action taken in this regard in Section II, item no. 13 of the Monthly Development Report for the month of August 2005. 5. This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. Yours faithfully, V S SUNDARESAN