Implementation of the SEBI (Stock Broker and Sub Brokers) (Amendment) Regulations, 2003 and format of Model Tripartite Agreement - SEBI - SEBI/MRD/DOPS/CIR-09/2005

CHIEF GENERAL MANAGER MARKET INTERMEDIARIES REGULATION AND SUPERVISION DEPARTMENT Tel : 2216 4428/29/38/49 Fax: 2216 4394 SEBI/MRD/DOPS/CIR-09/2005 March 31, 2005 The Executive Directors/Managing Director/Administrators of All Stock Exchanges Dear Sir/Madam, Sub: - Implementation of the SEBI (Stock Broker and Sub Brokers) (Amendment) Regulations, 2003 and format of Model Tripartite Agreement. 1. SEBI vide its circular no. SEBI/MIRSD/DPS-1/Cir-31/2004 dated August 26, 2004 had inter alia prescribed model format of the Tripartite Agreement between broker-sub broker and clients. The requirement relating to tripartite agreement was to come into effect from December 01, 2004, which was extended upto January 01, 2005 vide SEBI circular reference number SEBI/MRD/DOPS/Cir-41/2004 dated November 25, 2004 and further extended to April 01, 2005 vide Circular No. SEBI/MRD/DOPS/CIR-44/2004 dated December 29,2004. 2. The requirements of the captioned Amendment Regulations relating to changes in role of sub-brokers and their main brokers, including the format of the Model Tripartite Agreement specified by the above circulars, shall be implemented strictly from April 1, 2005. Any violation of the said requirements after such date would be viewed strictly, entailing appropriate action. 3. The above instruction does not apply for the present to subsidiaries of recognized stock exchanges who are registered as stock brokers and their registered sub-brokers, for whom special provisions are being made in the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992, which would be notified shortly. 4. The undersigned has been authorized to direct the exchanges to bring the provisions of this circular to the notice of the member brokers and also to disseminate the same on the website. 5. This circular is being 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. Yours faithfully, USHA NARAYANAN