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TMI BlogOrder under Section 4b (6) read with Section 4b (7) of the Securities Contracts (Regulation) Act, 1956 in the matter of the Magadh Stock Exchange Association (Corporatisation and Demutualisation) Scheme, 2005.X X X X Extracts X X X X X X X X Extracts X X X X ..... emutualised in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the 'SCRA'). 2.0 MSEA, vide its letter dated January 28, 2005 submitted a Scheme for its corporatisation and demutualisation for approval to the Securities and Exchange Board of India (hereinafter referred to as the 'SEBI') in terms of sub-section (1) of section 4B of the SCRA. SEBI vide letter dated May 25, 2005 advised MSEA to submit a revised scheme taking into account the provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005, which may be relevant and applicable to MSEA. 3.0 Thereafter, MSEA, vide its letter dated June 07, 2005 submitted a revised scheme after taking into account the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , alter or modify the Scheme in the interest of the trade and in the public interest and in furtherance of the objectives of the corporatisation and demutualisation of the stock exchange. 8.0 The Scheme shall come into effect on the day of its publication in the Official Gazette. [F. No. SEBI/MRD/49401/2005] M. DAMODARAN, Chairman Encl: Annexure A Annexure A THE MAGADH STOCK EXCHANGE ASSOCIATION (CORPORATISATION AND DEMUTUALISATION) SCHEME, 2005 1. Title and Commencement 1.1 This Scheme shall be called the Magadh Stock Exchange Association (Corporatisation and Demutualisation) Scheme, 2005 (hereinafter referred to as "this Scheme") 1.2 This Scheme shall have effect on its publication under sub-section (4) of section 4B of the Secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conversion/ re-registration as per the Register of Members maintained by it. 2.5 "Shareholder" means a person who holds any equity share(s) of MSEL. 2.6 "Trading Member" means a stock broker of MSEL and registered with SEBI as such under the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992. 2.7 Words and expressions used and not defined in this Scheme but defined in the Securities and Exchange Board of India Act, 1992, the Depositories Act, 1996, the SCRA, the Companies Act, 1956, the rules and regulations made under these Acts, the Memorandum and Articles of Association, Rules, Bye-Laws and Regulations of MSEA, shall have the same meanings respectively assigned to them in the above mentioned Acts, Memorandum and Articles of Associ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Allotment of Shares 5.1 Every Member or his nominee, as the case may be (other than the Members who have subscribed to the equity shares of MSEL pursuant to clause 3.2 above) shall be entitled to 5,000 fully paid-up equity shares of the face value of Re.1/- each, for cash at par of MSEL. 5.2 MSEL shall allot the equity shares to the entitled Members or their nominees, as the case may be, as referred to in clause 5.1, by the Due Date: Provided that the allotment to a Member suspended by MSEA shall be held in abeyance till the suspension continues. 5.3 The invitation to subscribe to and the offer, issue and allotment of equity shares of MSEL pursuant to this clause shall not be considered as being an invitation, offer, issue or allotment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd privileges: Provided that MSEL may, with the prior approval of SEBI, grant additional privileges to those Trading Members who were Members on the day preceding the date of conversion/ re-registration. 8.7 Trading Members on the Due Date shall continue to have the same rights and privileges in respect of their clients and constituents and other members arising out of or under any act, omission or contract or law, notification, order, direction, etc. as had accrued to them while trading before the Due Date. 8.8 Trading Members shall be bound by all obligations and liabilities towards their clients and constituents, SEBI, MSEA and other authorities or other persons arising out of or under any act, omission or contract or law, notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Date, subject to the prior approval of SEBI, transfer the duties and functions of its clearing house to a clearing corporation recognised under SCRA. 11.2 Until the duties and functions of the clearing house are transferred as provided in clause 11.1, the clearing and settlement functions in relation to trading on MSEL shall be carried out by the clearing and settlement mechanism as used by MSEA at present or in such other manner as the Governing Board may determine. 12. Utilisation of Assets and Reserves 12.1 MSEL shall not do anything contrary to the provisions of section 4B (3) of the SCRA. 12.2 Without prejudice to the generality of the provisions in clause 12.1, MSEL shall not use the assets and reserves of MSEA as on the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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