OTC EXCHANGE OF INDIA

Ref. No.:3162/2004-05/OTC

Date: November 10, 2004

 Dear Members/Dealers,

 The Exchange is in receipt of letter no. MAPIN/25163/2004 dated November 04, 2004 from SEBI regarding SEBI (Central Database of Market Participants) Regulations, 2003. The contents of the said letter are reproduced below:

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 DEPUTY GENERAL MANAGER                                                    

Market Regulation Department

E-mail: sundaresanvs@sebi.gov.in

                                                                                                            MAPIN/25163/2004

             November 04, 2004

To

The Executive Directors/Managing Director/Administrator

Of All the Stock Exchanges

Dear Sir/Madam,

Sub: Second attempts to obtain UIN under the Central Database of Market Participants (MAPIN database)

1. Pursuant to the notification of the SEBI (Central Database of Market Participants) Regulations, 2003, SEBI has vide various notifications specified certain categories of investors and intermediaries who are required to obtain a Unique Identification Number (UIN) under the MAPIN database. The aforesaid Regulations stipulate that a UIN is to be obtained only once by an individual/entity.

2. However, it has been brought to SEBI’s notice that in the past few months some individuals have attempted to obtain a second UIN. On an examination of the facts of such cases, it is observed that the attempt has been made out of ignorance of the procedure rather than with any malafide intention.

3. In an effort to address this issue and increase the awareness amongst the market participants, SEBI has issued a clarificatory press release dated October 18, 2004, a copy of which is enclosed for your reference.

4. You are requested to bring the contents of the aforesaid press release to the notice of your members/participants, so as to further increase the level of awareness on the issue amongst the market participants.

                                                PRESS RELASE

                                                                                                            PR No. 278/2004

Clarification on Unique Identification Number (UIN) under MAPIN

Securities and Exchange Board of India (SEBI) has specified from time to time the categories of individuals and entities that are required to obtain a Unique Identification Number (UIN) under the Central Database of Market Participants (MAPIN) Regulations, 2003. It has been further clarified that the UIN has to be obtained only once by an individual/entity irrespective of any change to the official position(s) held by the individual. A UIN once issued to an individual is permanent under any of the following circumstances:

1. On change of employment by the individual, as an employee of the new organization
2. As on employee of one organization and director of another organization
3. As an employee/director of one organization and the relative of an employee/director of another organization
4. As an individual and as a director of an organization
5. As a director of two different organizations
6. As an individual and as a client undertaking margin trading activities
7. Loss of original MAPIN card
8. Non-receipt of MAPIN card after submitting the application form,…

It is therefore, reiterated that an individual needs to obtain only one UIN which can then be linked to other organizations/intermediaries under the circumstances enumerated above, including change of employment. Similarly, an entity needs to obtain UIN only once even though it may be registered with SEBI in various capacities.

It may also be noted that obtaining a second UIN, by an individual or an entity is a violation of the provisions of SEBI, MAPIN regulations 2003 and the concerned person is therefore, liable for appropriate penal action.

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All members/dealers are requested to kindly take note of the same.

For OTC Exchange of India

R.Anand

Asst. Vice President