NATIONAL STOCK EXCHANGE UF INDUTA LIMITED

The draft amendments to the Rules of National • Stock

Exchange, as given hereunder, are published for criticism In

accordance with the provisions of Section 23 of Ihe General

Clauses Act, 1897 in the Gazette of

India.

Any person

having any observations on t£ie proposed nmendments

can

send the same in writing to the Company Secretary & Sr.

Vic©- President, National Stock Exchange of India Limited

at Trade World,

Senapati

Bapat

Marg,

Lower

Parel,

Mumbai-400013 within fifteen days from the date of fhis-

publication in the Gazette. The observations received ufter

the aforementioned date will

not be considered when

the

draft will be taken for consideration.

A. (I) The existing Rule (33) of

Chapter H

the

Rules of the Exchange h proposed to be amended by

in-

serting the following wc^ds between the words 'defaulter'

and 'shall' appearing on the first line.

"or whose trading membership ha?, been compulsorily

terminated by the Exchange".

(2) The following clause is proposed to be inserted ail

clause (h) to Rule 4 of Chapter UI of the Rule* of

U»

Exchange and as a-«BBrtt t i » egostwig dswes <ii), (1) and

(j) of Rule 4 Kball-fee -re-nnmbered as (i), (}) and <k) JQC*^

pectlvely :

QUOTE

(h) has surrendered his trading membership to

the

Exchange or his trading

membership

has

been

compulaorily termipaRxl or is declared a defaulter

by the exchange and a period of one year has

not elapsed from the date of sui^h surrender or

compulsory termination or declaration of default.

THE GAZETTE OF INDIA, APRIL 14, 2001 (CHAITRA 24, 1923)

[PART—IV

UNQUOTE

(3) The existing Rule (28) of Chapter HI of the Rules

»( the Exchange is proposed to be amended as under;

(J) by substituting existing clause (a) by the following

new clause (a) :

QUOTE

(a) By surrender of trading membership;

UNQUOTE

As a result of the above substitution, necessary con-

sequential changes are proposed to be carried out

in the Rules, Byelaws or Regulation wherever it is

necessary to do so.

• ii) by inserting following new clause (g) afier the exist-

ing clase (f) ;

QUOTE

(g) by compulsory termination of trading member-

ship-

UNQUOTE

(4) The existing Rule (32) of Chapter III of the Rules of

the Exchange is proposed to be amended by

deleting

the

following words 'these requirements shall be liable to be ter-

ninaJed'

after the words "who fails to meet" appearing on

the fourth line and substituting with the following words in

its place.

"with the requirement of maintenance of networth and

capital adequacy prescribed for a continued period of six

months may be compulsorily

terminated after giving an

opportunity of hearing. The trading membership of any

person who fails to meet any other requirements

other

than network and capital adequacy shall be liable to be

terminated by ewpulsion

under chapter IV of Rules of

the Exchange".

(5) Tho existing Rules (33), (34) and (35) of Chapter

• 1 of the Rules of the Exchange are proposed to be amended

fM the following manner :

(i) The word "etc" is proposed to be inserted af&r the

words 'Readmissdon of Defaulters' in the heading.

(ii) Rule 33.

The words "immediately he is declared a defnulter".

appearing at the end first sentence and tho words

"The member who is declared a defaulter shall for-

feit all his rights and privileges as a member" appear-

ing aft the beginning of the second sentence are pro-

posed to be deleted and the following words

are

proposed to be substituted in its place :-

"ip«o facto if such trading member is declared

a defaulter, expelled or his trading member-

ship is compulaorily terminated or

surrendered.

The trading

member,

who

is declared

defaulter, expelled or whose trading member-

ship is compulsorily terminated or Is surren-

dered, shall forfeit all his rights and privileges

a» a trading member".

(Hi) Rule 34.

The Existing rule 34 is proposed to be substituted by

the-1ollowlng new rule 34 as given hereunder :—

QUOTE

"The Relevant Authority may however readmit a

person, who has been declared a defaulter or whose

trading membership has been compulsorily terminated

or who has surrendered his trading membership, as

a trading member subject to the provisions and/or

norms as may be prescribed by the Relevant Autho-

rity from time to Jime".

UNQUOTE

(iv) Rule 35.

(a) The following words are proposed to be inserted

after the words "only such defaulter" on it»

first line "or such person whose trading member-

ship has been compulsorily terminated or \rtio

has surrendered his trading membership and".

(b) The following senJance is proposed to be in-

serted as clnuse (f) :

"ha* complied with the norms as may fee

prescribed from time to time by the rele-

vant authority".

(6) (i) The existing clause (e) of Rule 5 of Chapter IV of

the Rules of tho Exchange is proposed >o be amend-

ed in the following manner :

The word "and" appealing in between the

words

expelled" and "defaulter" in the sub heading is pro-

posed to bo substituted by comma (,) and the word

"etc." is proposed to be inseiwd at Hie end of the

sub-heading.

(ii) The following words arc proposed to be inserted at

the end of last line in clnuse (e) of Rule

5 of

Chapter IV :

"or whoso trading membership has bet;n com-

pulsorily terminated.".

(7). (i) The existing Rule 13 of Chapter IV of the Rules of

JSie Exchange is proposed to be substituted by

the

following new Rule 13 as given hereundev :

QUOTE

Explanation before suspension or expulsion, etc.

(3) A trading member shall be entitled to be summoned

before) relevant authority and afforded an opportunity

for

explanation before being suspended or expelled or his trading

membership is being compulsorily terminated but in all cases

the findings of the relevant authority shall be final, conclusive

and binding as against such trading member.

UNQUOTE

(8) Tho existing Rule 20 of Chapter IV of the Rules of

the Exchange is proposed to bo amended in the followine

manner :

(i) Tho word "esc" is proposed to be inserted after the

words "Consequences' of Expulsion" in the heading.

(ii) The following words arc proposed- to be inserted in

Rule 20 in between the words "expulsion of a trad-

ing member" and "shall have" on the first line.

"or compulsory termination of his trading member-

ship or surrender of fels trading membership".

(iii) The words "The expelled" appearing in between the

words "Trading membership righ& forfeited"

and

"trading member" on the first lino of Rule 20 (a)

are to be deleted and the word "such" is to

inserted In it« place.