DRAFT RULES - Securities Contracts (Regulation) Amendment Rules, 1992. - G.S.R. No.576(E)-F. No. 1/81/SE/90 - SEBI

MINISTRY OF FINANCE (Department of Economic Affairs) (Investment Division) NOTIFICATION New Delhi, the 2nd June, 1992 G.S.R. 576(E).- The following draft of certain rules further to amend (the Securities Contracts (Regulation) Rules, 1957 which the Central Government proposes to make in exercise of the powers conferred by sub-section (1) of section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), is hereby published as required by sub-section (3) of the said section for the information of all persons likely to be affected thereby, and notice is hereby given that the said draft will be taken into consideration on or after the expiry of a period of forty-five days from the date on which the copies of the Gazette of India in which this notification is published and are made available to the public. Any objections or suggestions which may be received from any person with respect to the said draft before the expiry of the said period will be considered by the Central Government. DRAFT RULES 1.(1) These rules may be called the Securities Contracts (Regulation) Amendment Rules, 1992. (2) They shall come into force on the date of their final publication in the Official Gazette. 2. In rule 8 of the Securities Contracts (Regulation) Rules, 1957, in clause (4), for the portion beginning with the words A company and ending with the words have unlimited liability in such comp following shall be substituted, namely :- A company as defined in the Companies Act, 1956 (1 of 1956) shall be eligible to be elected as a member of a Stock Exchange if - (1) such company is formed in compliance with the provisions of Section 12 of the said Act; (ii) such company undertakes to comply with such financial requirements and norms as may be specified by the Securities and Exchange Board of India for the registration of such company under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (iii) majority of the directors of such company are shareholders of the company and not less than 40 per cent of the paid-up equity capital of the company is held by them; (iv) the directors of the company are not disqualified for being members of a stock exchange under clause (1) (except subclause (f) thereof) or clause (3) (except sub-clause (f) thereof); (v) not less than two directors of the company are persons who possesses a minimum two years experience,- (a) in dealing in securities, on (b) as portfolio managers; or (c) as investment consultants . [F. No. 1/81/SE/90] KAMAL PANDE, Jt. Secty.