[aaykarbhavan] FinMin allows Stock Exchange membership to LLPs; no membership if partners possess less experience

SECURITIES CONTRACTS (REGULATION) SECOND AMENDMENT RULES, 2013 - AMENDMENT IN RULE 8

NOTIFICATION NO. GSR 705(E) [F.NO.1/17/SM/2011], DATED 24-10-2013

In exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956, (42 of 1956), the Central Government hereby makes the following rules further to amend the Securities Contracts (Regulation) Rules 1957, namely :—

1. (1) These rules may be called the Securities Contracts (Regulation) Second Amendment Rules, 2013.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Securities Contracts (Regulation) Rules, 1957, in rule 8, after the sub-rule (5), the following sub-rule shall be inserted, namely:—

"(6) A limited liability partnership as defined in the Limited Liability Partnership Act, 2008 (6 of 2009), shall also be eligible to be elected as a member of a stock exchange if,:—

(i)		such 'limited liability partnership' undertakes to comply with such financial requirements and norms as may be provided by the Securities and Exchange Board of India for registration of such limited liability partnerships under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(ii)		the designated partners of the 'limited liability partnership' are not disqualified from being members of a stock exchange under sub-rule (1) [except clause (b) and (f) thereof] or sub-rule (3) [except clause (a) and clause (f) thereof] and the designated partners of the 'limited liability partnership' had not held the offices of Directors in any company or body corporate or partner in any firm or 'limited liability partnership', which had been a member of the stock exchange and had been declared defaulter or expelled by the stock exchange; and
(iii)		not less than two designated partners of the 'limited liability partnership' are persons who possess a minimum experience of two years :—

(a)		in dealing in securities; or
(b)		as portfolio managers; or
(c)		as investment consultants.".

 

Regards

Prarthana Jalan

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