TMI BlogSecurities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2021.X X X X Extracts X X X X X X X X Extracts X X X X ..... be replaced by Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 ii. In sub-regulation (1) after Clause (h) the following shall be inserted namely- (i) Underwriter means a person who engages in the business of underwriting of an issue of securities of a body corporate. (j) Underwriting means an agreement to subscribe to or procure subscription for securities, issued or offered for sale, remaining unsubscribed. (k) issue means an offer of sale or purchase of securities by any body corporate, or by any other person or group of persons on its or his or their behalf, as the case may be, to or from the public, or the holders of securities of such body corporate or person or group of persons through a merchant banker; iii. in sub-regulation (2) the words Companies Act, 1956 shall be replaced by Companies Act, 2013 II. In regulation 3 , (i) after sub-regulation (3), the following shall be inserted, namely, ─ (4) Every stock broker holding a valid certificate of registration shall be entitled to act as an underwriter III. In regulation 9, (i) after Clause (g), the following shall be inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck Broker acting as an underwriter shall not derive any direct or indirect benefit from underwriting the issue other than the commission or brokerage payable under an agreement for underwriting. b) The total underwriting obligations under all the agreements shall not exceed twenty times of the net worth. c) Every Stock Broker acting as an underwriter, in the event of being called upon to subscribe for securities of a body corporate pursuant to an agreement shall subscribe to such securities within 45 days of the receipt of such intimation from such body corporate. V. In Regulation 27 , (i) In the title, the words, Enquiry Proceeding Regulations shall be replaced by Securities and Exchange Board of India (Intermediaries) Regulations, 2008 (ii) In Clause (v), the words Companies Act, 1956 shall be replaced by Companies Act, 2013 (iii) In Clause (vi), the words Companies Act, 1956 shall be replaced by Companies Act, 2013 VI. In Schedule II , after clause D, the following shall be inserted, namely, - E Duty as an underwriter In addition to duties specified above, the Stock Broker while acting as an Underwriter shall comply with following: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that of the employer including their long or short position in the said security, while rendering such advice. 10. A Stock Broker or any of its directors, partners or manager having the management of the whole or substantially the whole of affairs of the business, shall not either through its account or their respective accounts or through their associates or family members, relatives or friends indulge in any insider trading. 11. A Stock Broker acting as an underwriter shall not indulge in any unfair competition, which is likely to be harmful to the interest of other entities acting as underwriters carrying on the business of underwriting or likely to place such other underwriters in a dis-advantageous position in relation to the underwriter while competing for, or carrying out any assignment. 12. An underwriter shall not be party to or instrumental for- (a) creation of false market; (b) price rigging or manipulation; or (c) passing of unpublished price sensitive information in respect of securities which are listed or proposed to be listed in any stock exchange to any person or intermediary. VII. In Schedule VI , (i) after clause 5, the following shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2006 vide S.O. No. 1235 (E). (q) September 7, 2006 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations, 2006 vide S.O. No. 1447 (E). (r) September 25, 2006 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Third Amendment) Regulations, 2006 vide S.O. No. 1600(E). (s) May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide Notification No. LAD-NRO/GN/2008/11/126538. (t) August 11, 2008 by the Securities and Exchange Board of India (Stock Brokers and Sub Brokers) (Amendment) Regulations, 2008 vide Notification No. LADNRO/GN/2008/20/134766. (u) June 29, 2009 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2009 vide Notification No. LADNRO/ GN/2009- 10/11/167759. (v) November 19, 2009 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2009 vide Notification No. LADNRO/GN/2009-10/21/183853. (w)April 13, 2010 by the Securities and Exchange Board of India (Stock Brokers and Sub Brokers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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