Securities And Exchange Board of India (Stock Brokers And Sub-Brokers) (Amendment) Regulations, 2001. - S.O. No.1128(E) - SEBI/LE/40162/2001 - SEBI

SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 15th November, 2001 S.O. 1128(E).- In exercise of the powers conferred by sub-section (1) of Section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992. I. (i) These Regulations may be called the Securities and Exchange Board of India Stock Brokers and Sub-Brokers) (Amendment) Regulations,2001. (ii) They shall come into force on the date of their publication in the Official Gazette. II. In the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992 :- 1. In regulation 2, after clause (f), the following clause shall be inserted; namely:- (fa) self-clearing member' means a member of a clearing corporation or clearing house of the derivatives exchange or derivatives segment of a stock exchange who may clear and settle transactions on its own account or on account of its clients only, and shall not clear or settle transactions in securities for any other trading member(s). 2. In regulation 16A, in sub-regulation (2);- a) the words or self-clearing member shall be inserted after the words clearing member ; b) in the proviso, the words or self-clearing member shall be inserted after the words clearing member . 3. In regulation 16C, a) after sub-regulation (3), the following sub-regulation shall be added, namely:- (4) An applicant who desires to act as a self-clearing member, in addition to complying with the requirements of sub-regulation (1), shall have a minimum net worth of ₹ 100 lacs and shall deposit at least a sum of ₹ 50 lacs or higher amount with the clearing corporation or clearing house of the derivatives exchange or derivatives segment in the form specified from time to time. b) In the Explanation, for the words, sub-regulation (2) and (3) , the words, sub-regulations (2),(3) and (4) shall be substituted. 4. In regulation 16G;- a) in sub-regulation (1), the words or self-clearing member shall be inserted after the words clearing member ; b) in sub-regulation (2), the words or self-clearing member shall be inserted after the words Where a trading or clearing member and also after the words whereupon the trading and clearing member . 5. In regulation 16H, - a) in the heading, the words or self-clearing member shall be inserted after the words clearing member . b) after sub-regulation (5), the following sub-regulation shall be added, namely:- (6) The provisions of sub-regulation (1) to (5) shall be applicable mutatis mutandis to a self-clearing member. 6. In regulation 16I ;- (i) in sub-regulation (1), the words self -clearing member shall be inserted after the words a trading member, ; (ii) in sub-regulation (2), the words or self-clearing member shall be inserted after the words clearing member ; (iii) in sub-regulation (3), the words or self-clearing member shall be inserted after the words clearing member . (iv) In sub-regulation (4), the words or self-clearing member shall be inserted after the words clearing member . 7. In Schedule I;- a) In Form AA;- i) In the Heading of Form AA, the words and / or a self- clearing member shall be inserted after the words clearing member ; ii) In item 3, the words and / or a self-clearing member shall be Inserted after the words clearing member ; and iii) In item 4, the words or self-clearing member shall be inserted after the words details of the clearing member . b) In Form DA, the words or self-clearing member shall be inserted after the words as trading / clearing member . 8. In Schedule IV;- a) In the heading, the words OR SELF-CLEARING MEMBER shall be inserted after the words CLEARING MEMBER . b) In clause 2, in the Explanation, after the words, expiration of derivative contracts , the following sentence shall be inserted, namely :- However, for option contracts, the annual turnover' shall be computed on the basis of the premium traded for the option contracts and in case where the option is exercised / assigned, the annual turnover' shall be computed on the basis of the notional value of the option contracts exercised / assigned, in addition to the annual turnover' computed on the basis of premium traded . c) After clause 2, the following clause shall be inserted :- 2A The self-clearing member shall pay every year a fee as specified in clause 1 2. The provisions of clauses 3 to 6 shall be applicable mutatis mutandis to a self-clearing member. [F.No. SEBI/LE/40162/2001] D.R. MEHTA, Chairman FOOT NOTE (1) Securities and Exchange Board of India (Stock Brokers and Sub-Brokers), Regulatlons,1992, the Principal Regulations, was published in the Gazette of India on October 23,1992, vide S.O.No.780(E). (1) It was subsequently amended on : (a) November 28,1995 by the SEBI (Payment of Fees) Amendment Regulatlons,1995 vide S.O.No.939(E). (b) January 5,1998 by SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations,1998 vide S.O. No.13(E). (c) January 21,1998 by SEBI (Stock Brokers and Sub-Brokers) (Second Amendment), Regulations,1998 vide S.O.No.75(E). (d) December 16,1998 by SEBI (Stock Brokers and Sub-Brokers) (Third Amendment) Regulatlons,1998 vide S.O.No.1078(E). (e) July 6,1999 by SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 1999 vide S.O.No.541(E). (f) March 14,2000 by SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations,2000 vide S.O.No.234(E). (g) March 28,2000 by SEBI (Appeal to Securities Appellate Tribunal) Amendment Regulations,2000 vide S.O. No. 278(E). (h) August 30,2000 by SEBI (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations,2000 vide S.O.No.787(E). (i) May 29,2001 by SEBI (Investment Advice by Intermediaries) (Amendment) Regulatlons,2001 vide S.O.No.476(E).