Issuance of Contract Note in Electronic Format
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 Contract(Regulation) Act 1956, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
Please refer to circular no. SMDRP/POLICY/CIR-56/00 dated December 15, 2000 on the captioned subject wherein it was stated that brokers can issue contract notes authenticated by means of digital signatures provided that the broker has obtained digital signature certificate from Certifying Authority under the IT act, 2000.
SEBI has been receiving representations from the market participants whether, they can issue contract notes in electronic from. In this regard, it is clarified that by virtue of our above mentioned circular, the brokers in can issue the contract notes electronic from authenticated by means of digital signatures.
The Exchanges are directed to make necessary amendemnets in the bye laws, rules and regulations to give effect to the above clarifications immediately.
The Exchanges are directed to bring this
clarification to the notice of the member brokers/clearing members of the Exchange and
also to disseminate the same on the website for easy access to the investors.
The Excahnges are also directed to communicate to SEBI , the status of the implementation of this circular in section II, item no. 13 of the Monthly Development Report for the month of April 2003.
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