SMD Circular No. 21 dated September 04, 2002 - SEBI - SMD/POLICY/Cir-21/02

Circulars General Manager Secondary Market Department e-mail :[email protected] SMD/POLICY/Cir-21/02 September 04, 2002 The Executive Directors/ Managing Directors, All Stock Exchanges Dear Sir/Madam, The Group on Risk Management Systems for the Equity Markets met on May 31, 2002 to discuss issues relating to risk management at the stock exchanges. Pursuant to the discussions in the meeting of the Group on Risk Management in Equity Markets held on January 31, 2001, the following decisions have been taken: 1. Tenure for Bank Guarantee In SEBI circular dated February 13, 2001, the stock exchanges were advised to take their own decisions regarding the tenure of bank guarantees deposited by members towards Base Minimum Capital. Similarly, it has been decided to allow the exchanges to take their own decisions regarding tenure of the bank guarantees deposited by members towards additional capital. 2. Close-out procedure in case of indefinitely suspended/delisted scrips In the case of close out for scrips which have been indefinitely suspended/ delisted, the reference price would be the twenty-six weeks average traded price while the close out mark up would be 20%.You are advised to take steps to implement the above decisions. Yours faithfully, P K BINDLISH