Granting of Recognition to Sub brokers - SEBI - SEBI/MIRSD-DR 1/MSS/CIR-21/04

Chief General Manager Market Intermediaries Regulation Supervision Department SEBI/MIRSD-DR 1/MSS/CIR-21/04 May 26, 2004 To The Executive Director/Managing Director All Stock Exchanges Dear Sir / Madam, Your attention is invited to the SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2003 notified vide notification No. SO 1095 (E) dated 23rd September, 2003. This amendment makes it mandatory for the exchanges to recognise the sub-brokers while recommending the application for registration of sub brokers. In view of the above, you are advised to ensure that the sub-broker seeking registration is recognised by the exchange before the application is recommended to SEBI for registration as sub-broker. Similarly, the applications for cancellation of sub-broker registration must be forwarded to SEBI only after the sub-broker seeking cancellation is de-recognised by the exchange. Further, you are advised to ensure that all the existing sub-brokers on your exchange are granted recognition immediately, if not done already. Yours faithfully, (M. S. Sahoo)