TMI BlogQualifications for membership of a recognised stock exchangeX X X X Extracts X X X X X X X X Extracts X X X X ..... receiving order in bankruptcy has been made against him or he has been proved to be insolvent even though he has obtained his final discharge; (d) he has compounded with his creditors unless he has paid sixteen annas in the rupee; (e) he has been convicted of an offence involving fraud or dishonesty; (f) he is engaged as principal or employee in any business other than that of securities [2] [or commodity derivatives] except as a broker or agent not involving any personal financial liability unless he undertakes on admission to severe his connection with such business: [3] [Provided that no member may conduct business in commodity derivatives, except by setting up a separate company which shall comply wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the person seeking admission is in respect of means, position, integrity, knowledge and experience of business in securities, considered by the governing body to be otherwise qualified for membership. (3) No person who is a member at the time of application for recognition or subsequently admitted as a member shall continue as such if- (a) he ceases to be a citizen of India: Provided that nothing herein shall affect those who are not citizens of India but who were members at the time of such application or were admitted subsequently under the provisions of clause (b) of sub-rule (1) of this rule, subject to their complying with all other requirements of this rule; (b) he is adjudged bankrupt or a receiving order in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 322 of the said Act, (ii) a majority of the directors of such company are shareholders of such company and also members of that stock exchange; and (iii) the directors of such company, who are members of that stock exchange, have ultimate liability in such company: Provided that where the [10] [Securities and Exchange Board of India] makes a recommendation in this regard, the governing body of a stock exchange shall, in relaxation of the requirements of this clause, admit as member the following corporations, [11] [bodies corporate,] companies or institutions, namely- (a) the Industrial Finance Corporation, established under the Industrial Finance Corporation Act, 1948 (15 of 1948); (b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); [14] [(iii) * * *] (iv) the directors of the company are not disqualified for being members of a stock exchange under [15] [clause (1) [except sub-clause (b) and sub-clause (f) thereof] or clause (3) [except sub-clause (a) and sub-clause (f) thereof] and the Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried on or is not engaged as a principal or employee in any such business; 1 Substituted by GSR 581(E), dated 23-12-1996. [4] Omitted by GSR 1070(E), dated 15-11-1988. [5] Omitted by GSR 1070(E), dated 15-11-1988. [6] Omitted by GSR 1070(E), dated 15-11-1988. [7] Inserted by GSR 696(E), dated 28-8-2003, w.e.f. 28-8-2003. [8] Substituted by GSR 696(E), dated 28-8-2003, w.e.f. 28-8-2003 for the following: (iii) nothing herein shall affect members of a recognised stock exchange, permitted under the proviso to clause (f) of sub-rule (1) to suspend the enforcement of the aforesaid clause, for so long as such suspension is effective, except that no member of such exchange shall engage in forward business of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
