TMI BlogChange in Status and Constitution of the Stock Brokers in Cash and Derivatives Segments of the Exchanges under Rule 4 (c) of the SEBI (Stock Brokers and Sub-Brokers) Rules, 1992X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 4 of the SEBI (Stock-brokers and Sub-brokers) Rules, 1992 prescribes the conditions for grant of certificate of registration to a stock-broker. Rule 4 (c) of the said Rules prescribes that in case of any change in the status and constitution, the stock-broker shall obtain prior approval of the SEBI to continue to buy, sell or deal in securities in any stock exchange. In the absence of any general advice to stock exchanges about the circumstances requiring prior approval, it is observed that different exchanges follow different practices. For a particular type of change, some exchanges seek approval while some others do not. In order to clarify the circumstances which require prior approval and streamline the process of such approvals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Surrender of Certificate of registration Full fees, along with interest, if any, as on the date of acceptance of surrender by the Exchange needs to be paid. If application for surrender is accepted by SEBI, registration would be cancelled by SEBI with effect from the date of acceptance of surrender by the exchange. The exchange would cancel registration with effect from the same date but after receipt of advice from SEBI that the surrender has been accepted by SEBI. Until SEBI cancels the registration and issues No Dues Certificate, the security deposit of the broker shall not be released to the broker by the exchange. 3. In all the above cases (Para 2), the excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roker has submitted an undertaking to the exchange that it / he has no sub-brokers on the concerned exchange and he / it is not a sub-broker of the subsidiary of the concerned exchange, i) the incoming designated / whole time director is eligible to be appointed as director under the Securities Contracts (Regulation) Act, 1956, and j) in case of approval at Sl. No. F, the surrendering broker has been disabled from trading and the application for surrender is accompanied by the original certificate of registration (or indemnity) for cancellation. 4. The exchanges shall obtain fee clearance from SEBI before taking on record / approving the following changes: a. Change in shareholding pattern without change ..... X X X X Extracts X X X X X X X X Extracts X X X X
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