Members are hereby informed that SEBI vide letter reference No. SEBI/SMD/SF/11/2003/31/03 dated 31." March 2003 had advised Exchanges to generate a unique code for Mutual Funds and each scheme of a Mutual Fund, Foreign Institutional Investors and their sub-accounts. We are reproducing the contents of the said letter for information of members of the Exchange.
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General Manager
Secondary Market Department
Ref No. SEBI/SMD/SF/11/2003/31/03,
March 31, 2003
Dear Sir/Madam,
This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of the Securities Contracts (regulation) Act 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Please refer to SEBI circular no. SMDRP/POLICY/CIR-512003 dated February 12, 2003 regarding the activity schedule for the implementation of the T+2 rolling settlement at the exchanges w. c. f April 01, 2003 and Para No. 6 of the circular relating to client code.
As agreed, in the meeting with stock exchanges, depositories, market participants and RBI held on March 24, 2003 to take stock of the preparedness of the exchanges, depositories and the market participants in implementing the T+2 rolling settlement, it has been decided that the exchanges would generate a unique code for Mutual Funds and each scheme of a Mutual Fund, Foreign Institutional Investors (FIIs) and their sub-accounts. As this would require the exchanges to put in place adequate systems and carry out software changes the exchanges are provided with three months time to implement the system. Till such time the present practice. Of putting client IDs at the time of order entry in case of FIIs and mutual funds shall continue.
The exchanges are directed to make necessary amendments to the bye-laws, rules and regulations for the implementation of the above decision immediately.
The exchanges are directed to bring the provisions of this circular to the notice of the member brokers/clearing members of the exchange and also to disseminate the on the website for easy access to the investors
The exchanges are also directed to communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of March 2003
Yours faithfully
P K Bindlish
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All members will be required to comply with the requirements of the said SEBI circular upon generation of Unique Client Codes by the Exchange for the Mutual Funds and each scheme of a Mutual Fund, FII and their sub-accounts
Secretary
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