Aug 4, 2011

Friendly steps by SEBI for Investors and Intermediaries

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Friendly steps by SEBI for Investors and Intermediaries

Securities Law and Capital Market Regulator Securities Exchange Board of India (SEBI) has come out with circulars taking initiatives to reduce Investor grievances in association with the stock exchanges and have also endeavored towards reducing procedural hassles for the capital market Intermediaries.

The highlights of the Circulars are mentioned below:

  1. Vide Circular No. CIR/MIRSD/15/2011 dated 2nd August 2011, SEBI has directed that the details of the transactions done on each trading day shall be sent by the Stock Exchanges to the investors, by the end of each trading day, through SMS and E-mail alerts. Requirements mandated in the circular are:

    • The guidelines are applicable to equity- cash and derivative- segments of the stock exchanges.
    • The stock brokers will have to upload the details of its clients such as name, mobile number, email address etc. on the platform provided by the stock exchanges.
    • The stock exchanges shall take steps to verify the details provided by the stock brokers.
    • Any discrepancy in the details furnished by the stock brokers shall be informed to the respective broker.
    • The stock exchange shall put in place the necessary infrastructure for the implementation of the above at the earliest and within four months of the date of this Circular.

                  Circular No. CIR/MIRSD/15/2011 dated 2nd August 2011 .

  1. Vide Circular No. CIR/MIRSD/14/2011 dated 2nd August 2011, SEBI has taken step facilitating the intermediaries with multiple registrations to seek prior approval for change in control through single window in furtherance to its earlier notification dated April 19, 2011 wherein SEBI had done away with the requirements of prior approval of SEBI by the Capital Market Intermediaries in case of change in status or constitutions.

Subsequent to this latest circular, the Intermediaries with multiple registrations with SEBI would require to give only one application accompanied with following details about itself and the acquirer and directors/partners of acquirer:

    • Application was made in the past to SEBI for registration and not granted.
    • Actions initiated/taken under SCRA/SEBI Act or rules and regulations thereunder. Corrective steps thereof.
    • Acquirer to honour all past liabilities / obligations of the applicant.
    • Pending investor complaints and confirmation by acquire for their resolution.
    • Details of litigation.
    • Fees due to SEBI have been paid.
    • A declaration for no change in the Board of Directors of incumbent, till prior approval is granted.
    • Information by incumbent to existing investors / clients for proposed changes.
    • NOC (self attested) from the Stock Exchanges / Depositories etc. would be given to SEBI required


The validity of the approval shall be for a period of 180 days.

Circular No. CIR/MIRSD/14/2011 dated 2nd August 2011

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