Unique Client Code for Foreign Institutional Investors (FIIs) and their sub-accounts(SAs) - SEBI - IMD/CUST/16/2004

CHIEF GENERAL MANAGER INVESTMENT MANAGEMENT DEPARTMENT Circular No. IMD/CUST/16/2004 April 02 , 2004 To All Foreign Institutional Investors and Custodians of Securities Dear Sirs, Sub: Unique Client Code for Foreign Institutional Investors (FIIs) and their sub-accounts(SAs) SEBI vide circular No. SEBI/SMD/SE/11/2003/31/03 dated March 31, 2003(copy enclosed) had stipulated that the stock exchanges would generate Unique Client Codes (UCC) for institutional investors including FIIs and their sub-accounts. In order to identify the trades through multiple members of the Stock Exchanges and for the purpose of better risk management, it has been decided that FIIs/sub-accounts while trading in the Indian securities market would be required to inform the UCC to the member brokers. The use of UCC for trading through brokers will be made compulsory from a future date which will be announced separately. In view of the above, it is advised that: FIIs should approach either The Stock Exchange, Mumbai or National Stock Exchange and obtain unique client codes for themselves as well as for each of their sub-accounts . The details of contact persons are given in the Annexure . In future , whenever an entity is granted registration as an FII/sub-account, the concerned FII shall obtain the UCC from BSE or NSE before commencing the trading on its own behalf or on behalf of its sub-account(s). The FIIs may, if they so desire, authorise their respective custodians to obtain the said unique client codes for themselves as well as for each of their sub-accounts. This circular is being issued in exercise of powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of and to regulate the securities market. A copy of the circular is available at the web page Foreign Institutional Investors on our website www.sebi.gov.in . The custodians are requested to bring the contents of this circular to the notice of their FII clients. Yours faithfully, D. Chanda Encl: As above ANNEXURE Name of Exchange Name of Contact Person E-mail Telephone The Stock Exchange, Mumbai Mayank Mehta mayank@bseindia. com 22723872 National Stock Exchange Uday Mallya umallya@nse.co.in 26598267 General Manager Secondary Market Department e-mail : pkb@sebi.gov.in SEBI/SMD/SE/11/2003/31/03 March 31, 2003 To Managing Directors and Executive Directors Of all the stock exchanges Dear Sir/Madam, Sub :-Issue of Unique Client Code by Exchanges for Mutual Funds and FIIs This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of the Securities Contracts(regulation) Act 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Please refer to SEBI circular no. SMDRP/POLICY/CIR-5/2003 dated February 12, 2003 regarding the activity schedule for the implementation of the T+2 rolling settlement at the exchanges w.e.f. April 01, 2003 and Para No. 6 of the circular relating to client code. As agreed, in the meeting with stock exchanges, depositories, market participants and RBI held on March 24, 2003 to take stock of the preparedness of the exchanges, depositories and the market participants in implementing the T+2 rolling settlement, it has been decided that the exchanges would generate a unique code for Mutual Funds and each scheme of a Mutual Fund, Foreign Institutional Investors (FIIs) and their sub-accounts. As this would require the exchanges to put in place adequate systems and carry out software changes the exchanges are provided with three months time to implement the system. Till such time the present practice of putting client IDs at the time of order entry in case of FIIs and mutual funds shall continue. The exchanges are directed to make necessary amendments to the bye-laws, rules and regulations for the implementation of the above decision immediately. The exchanges are directed to bring the provisions of this circular to the notice of the member brokers/clearing members of the exchange and also to disseminate the same on the website for easy access to the investors. The exchanges are also directed to communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of March 2003. Yours faithfully, P K Bindlish