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TMI BlogNORMS REGULATING TRANSACTIONS BETWEEN MEMBERS/ DEALERS AND CLIENTS.X X X X Extracts X X X X X X X X Extracts X X X X ..... ' securities from their own securities and the monies received/paid on account of clients and on their own account. The books of account maintained by members/dealers on account of clients would help to distinguish the money paid by each client. The books of account to be maintained by members/dealers should be in accordance with rule 15 of the Securities Contracts (Regulation) Rules, 1957, and regulation 17 of the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992. 3. Books of account pertaining to the clients should, inter alia, provide for the following:- (i) securities received for sale or kept pending delivery in the market ; (ii) securities fully paid for, pending delivery to the clients; (iii) securities received for transfer or sent for transfer by the member/dealer in the name of the client or his nominee(s) ; (iv) securities that are fully paid for and are held in custody by the member/dealer as security. Proper authorisation from client for the same shall be obtained by the member/dealer; (v) fully paid for clients' securities registered in the name of members/dealers, if any, towards margin requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... buying client must tender full payment within two days of the issuance of a purchase confirmation slip/contract note, unless he has an existing equivalent credit in his account with the member/dealer. The member/dealer shall deliver the securities to the client within two working days of pay-out by the exchange. The member/dealer shall issue to the client a purchase confirmation slip/ contract note for all transactions in the permitted securities category within 24 hours of the execution of the contract. Selling client - Listed securities - In the case of listed securities; the selling client must deliver the securities within valid transfer documents within two days of the issuance of the sales confirmation slip. The member/dealer shall make payment to the client within two working days of pay out by the exchange. The member/dealer shall issue to the client a sales confirmation slip for all transactions in the listed securities category within 24 hours of the execution of the contract. Permitted securities - In the case of permitted securities, the selling client must deliver the securities with valid transfer documents within two days of the issuance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d clause 01 of Chapter II of the bye-laws is as follows : 01. The OTC Committee shall be appointed by the board of directors and shall consist of: (a) The managing director of the OTC Exchange of India; (b) The chief operating officer of the OTC Exchange of India as an alternate to the managing director; (c) Not more than five representatives of promoter institutions; and (d) Such representatives of the members and dealers and independent representatives not exceeding five, as may be decided by the board from time to time. The following modifications are made in the articles of association of the OTC Exchange of India:- ANNEXURE III Articles 110 :- (i) The company shall be entitled to agree with the President of India for the appointment of not more than two directors of the company by the President of India as contemplated by this article in respect of any advance or advances made by the Government of India or in respect of any guarantee or guarantees that may be given by the Government of India in connection with the company's borrowings. (ii) The company shall appoint such members not exceeding three as may be nominated by Secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use. Article 120C : The remuneration of the managing director (subject to the provisions of the Act and these articles) shall, from time to time, be fixed by the directors and be in accordance with the provisions of section 269 of the Companies Act read with Schedule XIII to the Act or any statutory modifications or re-enactment thereof for the time being in force, and be in accordance with the terms of his contract with the company. Article 120D : Subject to the provisions of the Act and to the terms of any contract with him, the managing director shall have the whole or substantially the whole of the management of the affairs of the company subject to the superintendence, control and direction of the board of directors including the following functions:- (i) The managing director shall be vested with the executive powers of the exchange to run the day-to-day administration and to enforce the articles, rules, bye-laws and regulations of the exchange and shall exercise such powers, etc., as are provided hereunder and as may be delegated or entrusted to him by the board from time to time. (ii) Subject to the control and supervision of the board, the managi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not, shall be subject to the provisions of the Arbitration Act, 1940, as provided under the bye-laws and regulations and should be referred to the concerned Arbitration sub-Committee. (B) Default sub-Committee : (i) Default sub-Committee shall consist of such members as mentioned in article 137B(1), and the nomination of the persons on the said sub-Committee shall be subject to the prior approval of the Securities and Exchange Board of India. (ii) Default sub-Committee shall deal with all cases of defaulting or defaulted members / dealers including the claims arising thereof and filed by the members/dealers of the exchange. This sub-Committee shall also be responsible for review of the cases of deflated members/dealers. (iii) Re-admission of defaulters - A member's/dealer's right of membership/dealership shall lapse and vest in the exchange immediately on his being declared defaulter. On the declaration of default he shall at once cease to be a member/dealer of the exchange and as such, cease to enjoy any of the rights of a member/dealer but the rights of his creditor member/s dealers against him shall remain unimpaired. The board of directors m ..... 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