RegAlert

Rule · SEBI · 7 Feb 2001

Composition of the deposit with subsidiary

securities

SEBI amends the composition requirements for deposits maintained by sub-brokers with their subsidiary companies. The non-cash component, previously restricted to irrevocable bank guarantees, may now be provided in the form of Fixed Deposit Receipts (FDRs) issued by a bank. These FDRs must be discharged in favor of the subsidiary or company and subject to a complete unencumbered and unconditional lien. This change applies to all stock exchanges and their sub-brokers.

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Feb 07, 2001 |

Circulars

SECURITIES AND EXCHANGE BOARD OF INDIA SECONDARY MARKET DEPARTMENT Mittal Court, B Wing, First Floor, 224, Nariman Point, Mumbai 400 021

SMDRPD/Policy/Cir-8/2001 February 7, 2001

To:

The President/Executive Director/ Managing Director of all the Stock Exchanges

Sir/ Madam

Composition of the deposit with subsidiary

As per circular no. SMD-II/ALLSE/CIR-02/2000 dated January 10, 2000, the separate deposit required to be maintained by the sub-broker of the subsidiary/company was required to be 25% in the form of cash and the balance 75% in irrevocable bank guarantees.

SEBI have received representations from the stock exchanging requesting that the non cash component of the deposit may be accepted in the form of Fixed Deposit Receipt (FDR) also. SEBI has considered the representation and it has been decided that, the non cash component of the deposit to be maintained by the sub broker with the subsidiary/company could also be in the form of FDR of the bank. These FDRs would be discharged in favour of the subsidiary/company and the subsidiary/company would be given a complete unencumbered and unconditional lien on these FDRs.

Yours faithfully

P K BINDLISH Deputy General Manager Secondary Market, Depository Research & Publications Dept. E-mail : pkb@sebi.gov.in

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Meeting of All Stock Exchanges2000 · SEBIMeeting of All Stock Exchanges (2000-01-10)Composition of the depositwith subsidiary2001-02-07 · this documentComposition of the deposit with subsidiary (2001-02-07)Mentions (2)documents that mention itopen the list below the graph ▾Mentions (2): documents that mention it without changing it — open the list below the graph
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  • Meeting of All Stock Exchanges2000 · SEBI

    “As per circular no. SMD-II/ALLSE/CIR-02/2000 dated January 10, 2000, the separate deposit required to be maintained by the sub-broker of the subsidiary/company was required to be 25% in the form of cash and the balance 75% in irrevocable b…”

Mentions (2): 2 documents mention this one without changing it
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