CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/95 July 04, 2024
To,
All recognized Stock Exchanges
All Depositories
Madam / Sir,
Sub: Modification to Enhanced Supervision of Stock Brokers and Depository
Participants
1. SEBI, vide Circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated
September 26, 2016 (hereinafter mentioned as ‘circular’) and Master Circular for
Stock Brokers dated May 22, 2024 (hereinafter mentioned as ‘Master Circular’),
inter alia, specified timelines for submission of annual audited accounts/net worth
certificate by Stock Brokers/Depository Participants as part of monitoring criteria,
the details of which are as follows:
Relevant clauses Existing provision
Para 6.1.1.c (Monitoring criteria for Failure to furnish Annual Audited Accounts
by September 30th of the relevant year
Stock Brokers) of Annexure to Circular
and Para 15.8.1.1.c of Master Circular
Para 6.1.2.a (Monitoring criteria for Failure to furnish Net worth certificate to
Depository for year ending March 31st by
DPs) of Annexure to Circular and Para
September 30th
15.8.1.2.a of Master Circular
2. As a step towards ease of doing business, it has been decided to revise the timeline
to October 31st of the relevant year. Accordingly, the said paras shall be read as
under:
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Relevant clauses Modified provision
Para 6.1.1.c (Monitoring criteria for Failure to furnish Annual Audited Accounts
by October 31st of the relevant year
Stock Brokers) of Annexure to Circular
and Para 15.8.1.1.c of Master Circular
Para 6.1.2.a (Monitoring criteria for Failure to furnish Net worth certificate to
Depository for year ending March 31st by
DPs) of Annexure to Circular and Para
October 31st
15.8.1.2.a of Master Circular
3. The provisions of this circular shall come into force with immediate effect.
4. The Stock Exchanges/Depositories are directed to:
4.1. bring the provisions of this circular to the notice of their members / participants
and also disseminate the same on their websites;
4.2. make necessary amendments to the relevant Bye-laws, Rules and Regulations
for the implementation of the above decision;
4.3. communicate to SEBI, the status of the implementation of the provisions of this
circular in their Monthly Development Reports.
5. The circular is issued with the approval of competent authority.
6. This circular is issued in exercise of powers conferred under Section 11(1) of
Chapter IV of the Securities and Exchange Board of India Act, 1992, and Section
19 of Chapter IV of the Depositories Act, 1996 to protect the interests of investors
in securities and to promote the development of, and to regulate the securities
markets.
7. This circular is available on SEBI website at www.sebi.gov.in under the
category: ‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
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