16^th January 2004

Mmebers are hereby informed that SEBI vide its Circular SEBI/MIRSD/Cir-06/2004 dt 13.01.04 has directed to the Exchange to implement the following directive with immediate effect.

"A stock broker/ sub broker of an Exchange can not deal with brokers /sub brokers of the same Exchange either for proprietary trading or for trading on behalf of clients, except with the prior permission of the Exchange. The Stock Exchanges while giving such permission, shall consider the reasons stated by the brokers/ sub brokers for dealing with brokers/ sub brokers of the same Exchange and after carrying out due diligence allow such brokers/sub brokers to deal with only one stock broker/sub broker of the same Exchange.

A stock Broker/sub broker of an Exchange can deal with only one broker/sub broker of another Exchange for proprietary trading after intimating the names of such stock brokers/ sub brokers to his parent Stock Exchange.

As per Regulation 15(1) (e) of the SEBI (Stock Brokers and Sub Brokers) Regulations, 1992 a Sub broker shall not be affiliated to more than one Stock Broker of one Stock Exchange. It is reiterated that a stock broker of an Exchange can deal with only one broker of another Exchange on behalf of clients after obtaining necessary registration as a sub broker. "

Members are advised to comply with the above direction with immediate effect. All submissions in this regard are to be made to Mr Samar Ghosh of the Membership Department of the Exchange.

Secretary