NEW DELHI, July 25: The Securities and Exchange Board of India (Sebi) has agreed in principle to allow corporate members of the Delhi Stock Exchange (DSE) to contest the elections to the board of the exchange.

Delhi Stock Exchange sources said that the board has also approved in principle the exemption of the turnover fee on conversion of an individual membership into a corporate membership on a stock exchange provided the individual member has paid the fee for the stipulated period of five years.

The Sebi board is likely to formally approve the proposal of exempting turnover fee for corporatisation of a membership during its next board meeting in mid-August.

In case an individual broker has paid turnover fees for less than five years and converted his membership into a corporate one, he will be required to pay the turnover fee for the remaining period of the stipulated five years.

Delhi Stock Exchange president Deepak Chowdhry told The Financial Express that DSE had, earlier last year, made a representation to Sebi to allow corporate members to contest the elections.

These changes will call for amendments to the articles of the exchange. "Sebi has given specific approval and the articles of the exchange would be changed at the next annual general meeting (AGM)," said Chowdhry.

Since a large number of Delhi Stock Exchange members have either already gone ahead with the conversion of their individual memberships into a corporate one or are in the process of doing so, it was felt that corporate members should also be allowed to contest in the elections.

Chowdhry said the board of directors of DSE is meeting on August 1. Items expected to feature on the agenda are the trade guarantee fund, changes in arbitration bye-laws and setting up of a wholesale debt market. The exchange has also signed an agreement with Reuters to allow DSE quotations to be available online. So far, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) rates are available online on Reuters.

"The DSE rates will be made available to the subscribers in about three weeks," said Chowdhry.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.