Securities Contracts (Regulation) Amendment Rules, 1992. - G.S.R. 870(E) - F No. 1/81/SE/90 - SEBI

MINISTRY OF FINANCE (Department of Economic Affairs) (Investment Division) NOTIFICATION New Delhi, the 13 th November, 1992 G.S.R. 870(E).- Whereas certain draft rules further to amend the Securities Contracts (Regulation) Rules, 1957, were published as required by sub-section (1) of section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) in the Gazette of India, Extraordinary Part-II, Section 3, Sub-section (i), dated the 2nd June, 1992 under the Notification of the Government of India in the Ministry of Finance (Department of Economic Affairs) No. GSR. 576(E) dated the 2nd June, 1992 inviting objections and suggestions from all persons likely to be affected thereby before the expiry of a period of forty-five days from the date on which the copies of the Gazette of India in which the said Notification was published were made available to public; And whereas the copies of the said Gazette were made available to the public on 27th June, 1992; And whereas the objections and suggestions received from the public on the said draft have been considered by the Central Government; Now, therefore, in exercise of the powers conferred by sub-section (1) of section 30 of the said Act, the Central Government hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules, 1957, namely :- 1. (1) These rules may be called the Securities Contracts (Regulation) Amendment Rules, 1992. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In rule 8 of the Securities Contracts (Regulation) Rules, 1957 after the existing sub-rule (4), the following sub-rule shall be inserted, namely :-- (4A) A company as defined in the Companies Act, 1956 (1 of 1956) shall also be eligible to be elected as a member of a Stock Exchange if- (i) Such company is formed in compliance with the provisions of section 12 of the said Act; (ii) such company undertakes to comply with such financial requirements and norms as may be specified by the Securities and Exchange Board of India for the registration of such company under subsection (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (iii) majority of the directors of such company are shareholders of the company and not less than 40 per cent of the paid-up equity capital of the company is held by these directors themselves or by the body corporate appointing them as directors on the board of such company; (iv) the directors of the company are not disqualified for being members of a stock exchange under clause (1) [except subclause (f) thereof or clause (3) [except sub-clause (f) thereof] and the Director of the company had not held the offices of The Director in Directors in any company which had been a member of the stock exchange and had been declarer) defaulter or expelled by the stock exchange; and (v) not less than two directors of the company are persons who possess a minimum two years' experience : (a) in dealing in securities; or (b) as portfolio managers; or (c) as investment consultants. [F No. 1/81/SE/90] Y. VENUGOPAL REDDY, Jt Secy.