OTC EXCHANGE OF INDIA

CIRCULAR

 

Ref No :0688/2003/CP/MDD/0322

 April 4, 2003

 Dear Member/Dealers,

Sub : Issue of Unique Client code by Exchange for Mutual Funds and FIIs.

 SEBI vide their circular SEBI/SMD/SE/11/2003/31/03 dated March 31, 2003 has issued the following circular. The SEBI circular reads as follows :

 Quote 

This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Section 10 of the Securities contracts (Regulation )Act 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

 Please refer to SEBI circular no. SMDRP/ POLICY/CIR-5/2003 dated February 12, 2003 regarding the activity schedule for the implementation of the T+2 rolling settlement at the exchanges w.e.f. April 01, 2003 and Para No. 6 of the circular relating to client code. 

As agreed, in the meeting with stock Exchanges, depositories, market participants and RBI held on March 24, 2003 to take stock of the preparedness of the Exchanges, depositories and the market participants in implementing the T+2 rolling settlement, it has been decided that the exchanges would generate a unique code for Mutual Funds and each scheme of a Mutual Fund, Foreign Institutional Investors (FIIs) and their sub-accounts. As this would require the exchanges to put in place adequate systems and carry out software changes the Exchanges are provided with three months time to implement the system. Till such time the present practice of putting client Ids at the time of order entry in case of FIIs and mutual funds shall continue.

 Unquote

 All the member/Dealers are requested to take note of the same.

 Thanking you,

 Yours faithfully,

Ajay C Singhvi

Asst. Vice President