Maintenance of books of accounts and other documents sought by Enforcement Agencies from Depositories and DPs

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Aug 04, 2005 |

Circulars

GENERAL MANAGER

Market Regulation Department

Division of Policy

SEBI/MRD/DEP/Cir- 16/2005

August 4, 2005

1.

The Managing Director, NSDL and

2.

The Executive Director, CDSL

Dear Sir,

Sub: Maintenance of books of accounts and other documents

1.

In terms of regulations 38 and 49 of the SEBI (Depositories and Participants) Regulations, 1996 (hereinafter referred to as D&P Regulations, 1996), Depositories and Depository Participants are required to preserve the records and documents for a minimum period of 5 years.

2.

It is noticed that enforcement agencies like CBI, Police, Crime Branch etc. have been collecting copies of the various records/documents during the course of their investigation.

These original documents both in physical form and electronic form would be required by such enforcement agencies during trial of the case also.

3.

In view of the above, not withstanding anything contained in D&P Regulations, 1996, you are advised to preserve the originals of the documents, both in electronic and physical form, copies of which have been taken by CBI, Police or any other enforcement agency during the course of any investigation till the trial is completed.

4. The Depositories are advised to:-

a) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ;

b) bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website; and

c) communicate to SEBI the status of the implementation of the provisions of this circular in Sec. III Item No. E of the Monthly Development Report for the month of September 2005.

5.

This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Yours faithfully,

V S SUNDARESAN