A body corporate who desires to operate a stock exchange license from the board.
Application: Application is to be made to the Board in such format and accompanied by such documents, particulars and fees
Matters to be included in the Application:
- Legal provision of establishing the SE or its MOA stating that the body corporate was formed to operate a stock exchange
- The body corporate maintains paid-up capital as prescribed and the capital shall not be less than 50 million (5 crores)
- Sufficient grounds that the body can provide infrastructures and facilities as may be required
- Matters relating to enlisting or similar matters to recognize the securities to be transacted by it
- Matters that the interest of investors will be protected through the provision and systems to be operated by the SE
- It has appropriate provision on settlement of transactions and publication of records and statement of transactions
- Complaint filed in relation to transaction carried by its member can be examined in a proper manner
- That action can be taken as mentioned in the bye-laws in the event of failure of its members to fulfill the liabilities under the contract.
Acronym - CAME SIIC
Terms and Conditions - The Board may specify the terms and conditions based on condition of capital market, healthy operation of the stock exchange and interests of investors. it shall be the duty of SE to observe such terms. Such T and C can also be altered from time to time
Validity - End of the Fiscal Year in which it is issued
Renewal - Within 3 months from the date of expiry of each fiscal year
Extension - 3 months from the expiry of time limit paying fine of 25% on the annual fees
Termination - If license not renewed within the time limit
(Same as for securities business)
Published By
Aadesh Kandel
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