NEW DELHI, Jan 28: The Securities and Exchange Board of India (SEBI) has directed member brokers of all stock exchanges to obtain a certificate of registration from the board to act as a sub-broker for executing transactions with members of other exchanges.In a circular issued to all exchanges, SEBI senior executive director O P Gahrotra said the sub-brokers are further required to issue promptly, to their respective clients, purchase or sale notes for all the transactions entered into by them on behalf of their clients.Accordingly, the members, who act on behalf of their principal brokers as sub-brokers, should issue purchase or sale notes for all the transactions entered into by them through their principal broker as an agent of the principal broker, Gahrotra said.
Following discussions with several exchanges, SEBI decided that the members of stock exchanges executing transaction of his client through the brokers of other exchanges should be treated as sub-brokers. And, it is necessary for the brokerto hold certificate of registration as a sub-broker granted by SEBI. (UNI)he regulatory watchdog further stated that even those members who act as sub-brokers should hold a separate registration.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
