Dated: 16th May
2005
Sub: Comprehensive Risk Management
Framework for the Cash Market
Further to the Notice of the Exchange dated 8th March 2005 regarding Comprehensive Risk Management Framework, members are hereby informed that the Exchange has received one Circular No. SEBI/MRD/SE/Cir- 12/2005, dated May 13, 2005 from SEBI on the above subject informing that the provisions of the earlier SEBI Circular shall now be implemented with effect from Monday, the 30th May, 2005, instead of Wednesday, the 18th May, 2005. The said circular is annexed herewith.
Members are requested to note the provisions of the circular.
Secretary
Annexure:
GENERAL MANAGER
Market Regulation
Department
E-mail:
sundaresanvs@sebi.gov.in
May 13, 2005
of
All Stock Exchanges
Dear
Sir / Madam,
Sub:
Comprehensive Risk Management Framework for the Cash Market
Dear
Sir,
1.
Please refer to SEBI Circular No.MRD/DoP/SE/Cir-07/2005 dated February 23, 2005
on the captioned subject.
2.
In terms of the said circular, the Stock Exchanges were required to put in
place the necessary systems to ensure the operationalization of the
comprehensive risk management framework
with effect from May 18, 2005 (Wednesday).
Further, the exchanges were to ensure that they have tested the software
and removed any glitches in its operation well before the above mentioned date
to avoid any problems in the live environment.
3.
In view of the representations received from some of the Stock Exchanges
requesting to make the provisions of the circular applicable, preferably, from
Monday (instead of during the middle of the week), it has been decided that the
provisions of the said Circular shall now be implemented with effect from Monday,
the 30 th
May,
2005, instead
of Wednesday, the 18 th May,
2005.
4.
Accordingly, the Stock Exchanges are advised to note that from the date of the
scheduled implementation, no stock exchange shall permit trading activity
unless the exchange is in a position to implement the revised risk management
framework as specified in the aforesaid SEBI Circular.
5.
The Stock Exchanges are advised to a. bring the provisions of this circular to
the notice of the member brokers/clearing members of the Exchange and also to
disseminate the same on the website.
b.
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 May 2005.
6.
This circular is being issued in exercise of powers conferred under Section 11
(1) of the Securities and Exchange Board of India Act, 1992, to protect the
interests of investors in securities and to promote the development of, and to
regulate the securities market.
Yours faithfully,
V S SUNDARESAN