Margin Trading Facility and Securities Lending and Borrowing

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..... ding and Borrowing 1. Please refer to circulars No. 15/2004 and 16/2004 dated March 19, 2004 and March 31, 2004 respectively on the captioned subject. Pursuant to the recommendations of the Secondary Market Advisory Committee (SMAC) and the approval of the SEBI Board, the regulatory framework for Margin Trading Facility and Securities Lending and Borrowing is modified as under:- 1.1 Margin Tradi .....

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..... er is required to obtain a no-objection certificate in writing from the other broker. The other broker shall be required to convey his objection, if any, in writing, within a period of 21 days from the date of receipt of query from the broker, failing which the broker would be free to proceed with providing Margin Trading Facility to the client. 1.1.4 The other provisions pertaining to Margin Tra .....

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..... sis. b. The Clearing Corporation/House of the Stock Exchanges shall work out a mechanism to borrow securities at a market determined rate. 2. The Stock Exchanges are also advised to: 2.1 make necessary amendments to the relevant bye-laws, rules, regulations and listing agreement for the implementation of the above decision immediately. 2.2 bring the provisions of this circular to the notice of .....

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