SECURITIES AND EXCHANGE BOARD OF INDIA

Rationalization of Periodic Call Auction for Illiquid Scrips

SEBI had vide circular no CIR/MRD/DP/ 6/2013 dated February 14, 2013 issued guidelines for trading in the illiquid scripts through Periodic Call Auction session. After introduction of periodic call auction framework, representations had been received from market participants regarding the aforesaid circular. The issues raised by market participants were examined and deliberated in Secondary Market Advisory Committee (SMAC) after which SEBI has decided to rationalize the periodic call auction mechanism and has modified few conditions vide circular No. CIR/MRD/DP/38/2013 dated December 19, 2013. All other conditions for trading in periodic call auction sessions contained in the circulars CIR/MRD/DP/21/2010 dated July 15, 2010, CIR/MRD/DP/32/2010 September 17, 2010 and CIR/MRD/DP/6/2013 February 14, 2013 remain unchanged.

Deposit Requirements for members of the Debt Segment

SEBI had vide circular no CIR/MRD/DP/03/2013 dated January 24, 2013 prescribed guidelines for providing dedicated debt segment on stock exchanges. Subsequently, SEBI (Stock Brokers and Sub-Brokers) Regulations was amended to enable registration of Stock Broker, Proprietary Trading Member, Clearing Member and Self Clearing Member of debt segment of the stock exchange. Further, SEBI vide circular no CIR/MRD/DP/27/2013 dated September 12, 2013 prescribed the “Risk Management Framework for Dedicated Debt Segment on Stock Exchanges”.

SEBI has now vide circular no CIR/MRD/DRMNP/37/2013 dated December 19, 2013 prescribed the deposit requirements for the members of the debt segment.

Declaration and Undertaking regarding PCC, MCV or equivalent structure by FIIs.

SEBI had vide circular No. CIR/IMD/FIIC/1/2010 dated April 15, 2010 mandated all Foreign Institutional Investors/ Sub Accounts to submit Declaration and Undertaking with regard to their opaque structure such as Protected Cell Companies (PCC), Multi Class Share Vehicles (MCV) or equivalent structure.

SEBI has now vide Circular CIR/IMD/FIIC/21/2013 dated December 19, 2013 clarified that if any applicant is required by its regulator or under any law to ring fence its assets and liabilities from other funds/ sub funds, such applicant shall not be treated as having opaque structure, provided:

1. the applicant is regulated in its home jurisdiction

2. each fund/ sub fund in the applicant satisfies broad based criteria, and

3. the applicant gives an undertaking to provide information regarding its beneficial owners as and when SEBI seeks this information.

Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to Normal Rolling Settlement

SEBI had vide circular No. CIR/MRD/DP/36/2013 dated December 16, 2013 advised the stock exchanges to consider shifting the trading in the securities to normal Rolling Settlement in respect of those companies which have established connectivity with both depositories NSDL and CDSL subject to the conditions mentioned in the circular.

The Stock Exchanges are advised to report to SEBI, the action taken in this regard in the Monthly/Quarterly Development Report.

Exchange Traded Cash Settled Interest Rate Futures (IRF) on 10-Year Government of India Security

SEBI vide circular No. SEBI/DNPD/Cir- 46 /2009 dated August 28, 2009 permitted Stock Exchanges to launch physically settled futures on 10-Year Government of India (GoI) Security. In consultation with RBI, after taking into account feedback from market participants and Stock Exchanges, SEBI has been decided to permit stock exchanges to introduce cash settled Interest Rate Futures on 10-Year Government of India Security. This has been notified by SEBI vide its circular No. CIR/MRD/DRMNP/35/2013 dated December 05, 2013

Simplification of Demat account opening process

SEBI has vide Circular No CIR/MIRSD/12/2013, dated 4^th December, 2013 decided in consultation with both the Depositories and Associations of stock brokers and Depository Participants to further simplify and rationalize the Demat account opening process. The existing Beneficial Owner-Depository Participant Agreements shall be replaced with a common document “Rights and Obligations of the Beneficial Owner and Depository Participant”. This will harmonize the account opening process for trading as well as demat account.

lllustrative format of Statement of Assets & Liabilities in SEBI (ICDR) Regulations, 2009

SEBI vide Circular No CIR/CFD/DIL/15 /2013, dated 3^rd December, 2013 has circulated an illustrative format of statement of Assets & Liabilities in offer document which is also in conformity with the Companies Act, 2013 as schedule III of the Companies Act, 2013 has adopted the same format as notified under revised schedule VI of Companies Act, 1956. This circular is applicable for all draft/final offer documents filed with the Board on or after the date of this circular. This circular is available on SEBI website at www.sebi.gov.in under the category “Legal Framework”.