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TMI BlogChange in Status and Constitution of the Sub-brokers, Surrender of Certificate of Registration of Sub-brokers and Change of Affiliation of Sub-brokersX X X X Extracts X X X X X X X X Extracts X X X X ..... wing events happening: A. Change in status and constitution 1. Rule 5 of the SEBI (Stock-brokers and Sub-brokers) Rules, 1992 prescribes the conditions for grant of certificate of registration to a sub-broker. Rule 5 (c) of the said Rules prescribes that in case of any change in the status and constitution, the sub-broker shall obtain prior approval of the SEBI to continue to buy, sell or deal in securities in any stock exchange. The rule is applicable inter alia, in the following cases: a) Conversion of the sub broker from one form to another (Proprietorship, Partnership Corporate and Reconstitution of Partnership.) b) Merger / Amalgamation of sub broker entities These two cases also require a fresh registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dure prescribed in section B below shall not apply for surrenders contemplated in this section. B. Surrender of registration by sub-broker 3. An application for surrender of registration has to be made to SEBI by the sub-broker, along with the following: (i) the letter of de-recognition issued by the Exchange; (ii) a certificate from the affiliating broker that the sub broker has been disabled from trading; (iii) copies of two advertisements issued by the affiliating broker informing the investors/ general public about the cancellation of his/their sub broker(s) and advising them not to deal with such sub broker(s). One advertisement shall be issued in a local newspaper where the sub broker s Registered Office/ Head Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y SEBI, registration would be cancelled by SEBI with effect from the date of de-recognition by the Exchange. Until SEBI cancels the registration and issues no due certificate, the deposit, if any, of the sub- broker shall not be released to the sub-broker by the Exchange. C. Forwarding of application 5. On receipt of the application(s) for prior approval and / or for surrender and / or registration, as the case may be, of the sub-broker(s), the Exchange shall forward the same to SEBI within a month of receipt of the application by the Exchange only after it has approved the same and recognized and / derecognized the sub-broker(s) concerned, along with a confirmation (if not possible to confirm, details may be given) on the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k broker sub-broker agreement with the incoming broker in terms of regulation 15(1)(c) of the said Regulations and a copy of the same shall be enclosed with the application for change of affiliation. The application for change of affiliation shall also be accompanied with the original certificate of registration of the sub-broker for carrying out the necessary changes. Though the affiliation of the sub-broker will change, it shall be liable for all its activities before the change of affiliation. E. Change in name of sub-broker or affiliating broker 7. Change in name of the sub broker or in name of affiliating broker would not amount to change in status and constitution of the sub-broker and hence no approval is required for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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