CIRCULAR
SEBI/HO/MRD/MRD-PoD-2/P/CIR/2024/25 April 24, 2024
To
All recognised Stock Exchanges
Dear Sir/ Madam,
Sub: Ease of Doing Business: Text on Contract Note with respect to Fit and
Proper status of shareholders
1. SEBI has received representations from market participants through the
Industry Standards Forum (ISF) to relax the requirement, under chapter 6 at
Para 2.4.2.2.2 of the Master Circular (Stock Exchanges and Clearing
Corporations) dated October 16, 2023, of publishing the text pertaining to ‘fit
and proper’ on the contract note in terms of Regulation 19 and 20 of the SEBI
(Securities Contract (Regulation) (Stock Exchanges and Clearing Corporation)
Regulations, 2018 (i.e. SCR (SECC) Regulations, 2018).
2. As a step towards ease of doing business, the requirement to publishing the
text of Regulation 19 of the SCR(SECC) Regulations, 2018 on the contract
notes is no longer required and Clause 2.4.2.2.2 under Chapter 6 of the Master
Circular (Stock Exchanges and Clearing Corporations) dated October 16, 2023
stands amended as under:
“In the post listing scenario, in lieu of text only a reference of the applicable
regulation with regard to fit and proper (by mentioning the URL/weblink of
Regulation 19 and 20 of the SCR(SECC) Regulations, 2018) shall be made
part of the contract note.”
3. The Stock Exchanges are accordingly advised to:
a. make necessary amendments to the relevant bye-laws, rules and
regulations for the implementation of the above decision immediately, as
may be necessary/applicable.
b. bring the provisions of this circular to the notice of their members and to
disseminate the same on their website.
c. communicate to SEBI the status of implementation of the provisions of this
circular in the Monthly Development Report.
a. This circular is being issued in exercise of powers conferred under
Section 11 (1) of the Securities and Exchange Board of India Act,
1992 to protect the interests of investors in securities market.
Yours faithfully,
Vishal Shukla
General Manager
vishals@sebi.gov.in
022-26449959