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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 Ludhiana Stock Exchange Association Limited (Demutualisation) Scheme, 2005.X X X X Extracts X X X X X X X X Extracts X X X X ..... to be demutualised in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the 'SCRA'). 2.0 The LSE, vide its letter dated January 17, 2005, submitted a Scheme for its 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 LSE to submit a revised Scheme, after taking into account the provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005, which may be relevant and applicable to LSE. 3.0 Accordingly, LSE, vide its letter dated June 21, 2005, submitted a revised Scheme for its demutualisation, after taking i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme in the interest of the trade and the public interest and in furtherance of the objectives of the 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/49403/2005] M. DAMODARAN, Chairman Encl: Annexure - A Annexure - A THE LUDHIANA STOCK EXCHANGE ASSOCIATION LIMITED (DEMUTUALISATION) SCHEME, 2005 1. Title and Commencement.-- 1.1 This Scheme shall be called "The Ludhiana Stock Exchange Association Limited (Demutualisation) Scheme, 2005" (hereinafter referred to as "this Scheme") and shall have effect on its publication under sub-section (4) of Section 4B of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 LSE, shall have the same meaning respectively assigned to them in the above mentioned Acts, memorandum and articles, rules, bye-laws and regulations. 3. Memorandum and Articles of Association, etc.-- 3.1 LSE shall incorporate the provisions of this Scheme appropriately in its memorandum and articles of association and the rules, bye-laws and regulations on or before the Due Date. 3.2 The memorandum and articles of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue Date. 7.3 After the Due Date, a person desirous of becoming a Trading Member shall be admitted if he complies with the requirements and brings in fees and deposits as specified in the rules, bye-laws and regulations of LSE. 7.4 LSE shall, for the purpose of admitting any person as a Trading Member, follow uniform standards in terms of capital adequacy, deposits, fees, etc. irrespective of mode of acquisition of trading right by that person: Provided that different standards may be followed for admission of a person as a Trading Member who has acquired trading right by way of transmission. 7.5 A Trading Member may surrender his membership to LSE in the manner specified in the rules, bye-laws and regulation of LSE. 7.6 Irrespective of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voting rights held by him and by persons acting in concert with him) exceeding 5% of the voting rights in LSE. 9. Transfer of Clearing and Settlement Functions.-- 9.1 LSE shall, within two years of the Due Date, subject to the prior approval of SEBI, transfer the duties and functions of its clearing house to a Clearing Corporation, recognised under the SCRA. 9.2 Until the duties and functions of the clearing house are transferred as provided in clause 9.1, the clearing and settlement functions in relation to trading on LSE, shall be carried out by the clearing and settlement mechanism as used by LSE at present or in such other manner as the Governing Board may determine. 10. Utilisation of Assets and Reserves.-- 10.1 LSE shall not do a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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