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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 Ludhiana Stock Exchange Association Limited (Demutualisation) Scheme, 2005.X X X X Extracts X X X X X X X X Extracts X X X X ..... rket, Ludhiana. It is required to be demutualised in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the SCRA ). 2.0 The LSE, vide its letter dated January 17, 2005, submitted a Scheme for its 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 LSE to submit a revised Scheme, after taking into account the provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005, which may be relevant and applicable to LSE. 3.0 Accordingly, LSE, vide its letter dated June 21, 2005, submitted a revised Scheme f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EBI reserves the right to amend, alter or modify the Scheme in the interest of the trade and the public interest and in furtherance of the objectives of the 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/49403/2005] M. DAMODARAN, Chairman Encl: Annexure A Annexure - A THE LUDHIANA STOCK EXCHANGE ASSOCIATION LIMITED (DEMUTUALISATION) SCHEME, 2005 1. Title and Commencement.-- 1.1 This Scheme shall be called The Ludhiana Stock Exchange Association Limited (Demutualisation) Scheme, 2005 (hereinafter referred to as this Scheme ) and shall have effect on its publication under sub-section (4) of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Member means a stock broker of LSE 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 LSE, shall have the same meaning respectively assigned to them in the above mentioned Acts, memorandum and articles, rules, bye-laws and regulations. 3. Memorandum and Articles of Association, etc.-- 3.1 LSE shall incorporate the provisions of this Scheme appropriately in it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tock broker on the day preceding the Due Date, shall become a Trading Member on being registered as a stock broker under SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992 within 3 months from the Due Date. 7.3 After the Due Date, a person desirous of becoming a Trading Member shall be admitted if he complies with the requirements and brings in fees and deposits as specified in the rules, bye-laws and regulations of LSE. 7.4 LSE shall, for the purpose of admitting any person as a Trading Member, follow uniform standards in terms of capital adequacy, deposits, fees, etc. irrespective of mode of acquisition of trading right by that person: Provided that different standards may be followed for admission of a person as a Tradi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Date, LSE shall ensure that public other than shareholders having trading rights continuously holds at least 51 % of equity shares. 8.4 On and from the Due Date, no Shareholder, who is a Trading Member, shall have voting rights (taken together with voting rights held by him and by persons acting in concert with him) exceeding 5% of the voting rights in LSE. 9. Transfer of Clearing and Settlement Functions.-- 9.1 LSE 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 the SCRA. 9.2 Until the duties and functions of the clearing house are transferred as provided in clause 9.1, the clearing and s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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