Failure to pay fee in the manner specified in Schedule IH of the SEBI (Stock brokers and Sub-brokers) Rules and Regulations. 1992 read with Circular No. SMDI Policy/ Cir-07/ 2002 dated March 28. 2002

Members are hereby informed that SEBI vide its Circular No. SMDIDBA-11/Cir- 28/12348/03, dated 25" June 2003 had advised the Exchange to bring to the notice, of all members about failure to pay fees in the manner specified in Schedule HI of the SEBI (Stock brokers and Sub-brokers) Rules and Regulations, 1992 read with Circular No. SMDI Policy/ Cir- 07/ 2002 dated March 28, 2002. We are reproducing the contents of the said circular for information and necessary compliance by members of the Exchange. Quote In terms of Rule 4 (d) of the SEBI (Stock brokers and Sub-brokers) Rules, 1992, the certificate of registration to a stockbroker is granted subject to the condition inter-alia that he shall pay the amount of fees for registration in the manner provided in the regulations. In terms of regulation 10 of the SEBI (Stock brokers and Sub-brokers) Regulations, 1992 (hereinafter referred to as the 'the said Regulations') a stockbroker having certificate of registration is under obligation to pay such fees and in such manner as provided in Schedule IU of the said Regulations. As per Regulation 10 (2), where a stock broker fails to pay fees as provided in Regulation 10, the Board may suspend the registration certificate whereupon the stock broker shall cease to buy, sell or deal in securities as a stock broker. Further Regulation 25 (a) provides that a stockbroker, who fails to comply with any condition subject to which registration has been granted, shall he liable to action in the manner provided under the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002. Vide Circular No. SMD/Policy/Cir-0712002 dated March 28, 2002, SEBI had provided a facility to all brokers who did not pay fees, that they should pay at least 50% of the principal due in the cash market and give an undertaking to pay the balance fees within a period of two years along with interest. Such facility was kept open to all brokers up to March 31, 2003. The decision that the 50% facility would not be available after March 31, 2003 was communicated to all Exchanges vides circular SMDIDBA-11/Cir-011178 103 dated January 03, 2003. You are advised to bring to the notice of all members that those members who have failed to comply with the 50% facility by March 31, 2003 and for whom collection of fees has not been stayed by any Court of law, are required to pay the entire fees and interest payable up to financial year 2002-03 by August 31. 2003 failing which, appropriate action as permissible under the SEBI Act, 1992 or the SEBI (Stock brokers and Sub-brokers) Regulations, 1992 would be initiated.

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Members are advised to comply accordingly to avoid action by SEBI under SEBI Act, 1992 or SEBI (Stock Brokers and Sub-Brokers) Regulations 1992.

Secretary