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TMI BlogOrder under Section 4b (6) read with Section 4b (7) of the Securities Contracts (Regulation) Act, 1956 in the matter of the Magadh Stock Exchange Association (Corporatisation and Demutualisation) Scheme, 2005.X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be corporatised and demutualised in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the SCRA ). 2.0 MSEA, vide its letter dated January 28, 2005 submitted a Scheme for its corporatisation and demutualisation for approval to the Securities and Exchange Board of India (hereinafter referred to as the SEBI ) in terms of sub-section (1) of section 4B of the SCRA. SEBI vide letter dated May 25, 2005 advised MSEA to submit a revised scheme taking into account the provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005, which may be relevant and applicable to MSEA. 3.0 Thereafter, MSEA, vide its letter dated June 07, 2005 submitted a revised scheme after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by SEBI. 7.0 SEBI reserves rights to amend, alter or modify the Scheme in the interest of the trade and in the public interest and in furtherance of the objectives of the corporatisation and demutualisation of the stock exchange. 8.0 The Scheme shall come into effect on the day of its publication in the Official Gazette. [F. No. SEBI/MRD/49401/2005] M. DAMODARAN, Chairman Encl: Annexure A Annexure A THE MAGADH STOCK EXCHANGE ASSOCIATION (CORPORATISATION AND DEMUTUALISATION) SCHEME, 2005 1. Title and Commencement 1.1 This Scheme shall be called the Magadh Stock Exchange Association (Corporatisation and Demutualisation) Scheme, 2005 (hereinafter referred to as this Scheme ) 1.2 This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r referred to as MSEL ). 2.4 Member means a person who is a member of MSEA on the day preceding the date of conversion/ re-registration as per the Register of Members maintained by it. 2.5 Shareholder means a person who holds any equity share(s) of MSEL. 2.6 Trading Member means a stock broker of MSEL and registered with SEBI as such under the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. 2.7 Words and expressions used and not defined in this Scheme but defined in the Securities and Exchange Board of India Act, 1992, the Depositories Act, 1996, the SCRA, the Companies Act, 1956, the rules and regulations made under these Acts, the Memorandum and Articles of Association, Rules, Bye-Laws and Regulations of MSEA, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficio director. 4.3 Notwithstanding anything contained in clause 4.2, SEBI may nominate directors on the Governing Board as and when deemed fit. 5. Allotment of Shares 5.1 Every Member or his nominee, as the case may be (other than the Members who have subscribed to the equity shares of MSEL pursuant to clause 3.2 above) shall be entitled to 5,000 fully paid-up equity shares of the face value of Re.1/- each, for cash at par of MSEL. 5.2 MSEL shall allot the equity shares to the entitled Members or their nominees, as the case may be, as referred to in clause 5.1, by the Due Date: Provided that the allotment to a Member suspended by MSEA shall be held in abeyance till the suspension continues. 5.3 The invitation to su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bership to MSEL in the manner specified in the Rules, Bye-laws and Regulations of MSEL. 8.6 Irrespective of the date or mode of acquisition of trading right, the Trading Members shall have uniform rights and privileges: Provided that MSEL may, with the prior approval of SEBI, grant additional privileges to those Trading Members who were Members on the day preceding the date of conversion/ re-registration. 8.7 Trading Members on the Due Date shall continue to have the same rights and privileges in respect of their clients and constituents and other members arising out of or under any act, omission or contract or law, notification, order, direction, etc. as had accrued to them while trading before the Due Date. 8.8 Trading Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded after the Due Date in accordance with the applicable laws provided that no such amendment is inconsistent with any provision of this Scheme. 11. Transfer of Clearing and Settlement Functions 11.1 MSEL shall, within two years of the Due Date, subject to the prior approval of SEBI, transfer the duties and functions of its clearing house to a clearing corporation recognised under SCRA. 11.2 Until the duties and functions of the clearing house are transferred as provided in clause 11.1, the clearing and settlement functions in relation to trading on MSEL shall be carried out by the clearing and settlement mechanism as used by MSEA at present or in such other manner as the Governing Board may determine. 12. Utilisation of A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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