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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 Hyderabad Stock Exchange Limited (Corporatisation and Demutualisation) Scheme, 2005.X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as the 'SCRA'). 2.0 HSEL, vide its letter dated February 2, 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 its letter dated May 25, 2005 advised HSEL to submit a revised scheme taking into account the provisions of the BSE (Corporatisation and Demutualisation) Scheme, 2005, which may be applicable and relevant to HSEL. Accordingly, HSEL, vide its letter dated June 13, 2005 submitted a revised scheme after taking into account the provisions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e trade and in the public interest and in furtherance of the objectives of the corporatisation and demutualisation of the stock exchange. 7.0 The Scheme shall come into effect on the day of its publication in the Official Gazette. [F. No. SEBI/MRD/48114/2005] M. DAMODARAN, Chairman Encl: Annexure - A Annexure - A THE HYDERABAD STOCK EXCHANGE LIMITED (CORPORATISATION AND DEMUTUALISATION) SCHEME, 2005 1. Title and Commencement 1.1 This Scheme shall be called The Hyderabad Stock Exchange Limited (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 Securities Contracts (Regulation) Act, 1956 (herein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany limited by shares pursuant to clause 3 of this Scheme. 2.6 "Trading Member" means a stock broker of HSEL 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, rules and regulations made under these Acts, the Memorandum and Articles of Association, Rules, Bye-Laws and Regulations of HSEL shall have the same meanings respectively assigned to them in the above mentioned Acts, the Memorandum and Articles of Association, Rules, Bye-laws and Regulations. 3. Re-Registration 3.1 HSEL shall re-register it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares pursuant to clause 3.2) shall be entitled to 10,000 fully paid-up equity shares of the face value of Re.1/- each for cash at par of HSEL. 5.2 HSE 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 of shares to a Member suspended by HSEL shall be kept in abeyance till the suspension continues; Provided further that the allotment of shares in respect of deceased and defaulter members shall be made on fulfilment of all requisite formalities. 5.3 The invitation to subscribe to, and the offer, issue and allotment of equity shares of HSEL pursuant to this clause shall not be considered as being an invitation, offer, issue o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate or mode of acquisition of trading right, the Trading Members shall have uniform rights and privileges. Provided that HSEL may, with the prior approval of SEBI, grant additional privileges to those Trading Members who were Members on the day preceding the 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 on HSEL before the Due Date. 8.8 Trading Members shall be bound by all obligations and liabilities towards their clients and constituents, SEBI, HSEL and other authorities or other p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing and Settlement Functions 11.1 HSEL shall, within two years from 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 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 HSEL shall be carried out by the clearing and settlement mechanism as used by HSEL at present, or in such other manner as the Governing Board may determine. 12. Utilisation of Assets and Reserves 12.1 HSEL 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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