UPDATES: Stock Exchange

Tuesday, 9 July 2013

REVISED POSITION LIMITS FOR EXCHANGE TRADED CURRENCY DERIVATIVES

Circular No. - CIR/MRD/DP/ 22 /2013

Dated – 08/07/2013

1. This is in partial modification of SEBI Circular No. SEBI/DNPD/Cir-38/2008 dated August 6, 2008, SEBI/DNPD/Cir-45/2009 dated March 24, 2009, CIR/DNPD/5/2010 dated July 30, 2010 and CIR/DNPD/2/2012 dated May 23, 2012 which, inter-alia, specified the position limits applicable for Client and Trading Member for Exchange Traded Currency Derivatives.

2. In consultation with RBI and in view of the recent turbulent phase of extreme volatility in USD-INR exchange rate, it has been decided to curtail position limits and increase margin requirements for Currency Derivatives as follows:

a. Margins: Initial and extreme loss margins shall be increased by 100% of the present rates for USD-INR contracts in Currency Derivatives.

b. Client level position limits: The gross open position of a client across all contracts shall not exceed 6% of the total open interest or 10 million USD, whichever is lower.

c. Non-bank Trading Member position limits: The gross open position of a Trading Member, who is not a bank, across all contracts shall not exceed 15% of the total open interest or 50 million USD whichever is lower.

3. Stock Exchanges are directed to:

a. take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant byelaws, rules and regulations;

b. implement provisions of this circular with effect from July 11, 2013;

c. bring the provisions of this circular to the notice of the trading members/clearing members and also disseminate the same on its website.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769

Website: www.caaga.co.in

ARBITRATION MECHANISM IN STOCK EXCHANGES

Circular No. - CIR/MRD/ICC/21/2013
Dated- 05/07/2013

1. Reference may be made to circulars no. CIR/MRD/DSA/24/2010 dated August 31,2010, CIR/MRD/SA/03/2012 dated January 20, 2012 and CIR/MIRSD/2/2012 dated February 15, 2012 regarding investor service centres providing inter alia arbitration facility (arbitration as well as appellate arbitration). Presently, these facilities are being provided at 8 centres viz. Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Kanpur and Indore.

2. With a view to extend these facilities, it has been decided to increase the number of investor service centres providing inter alia arbitration facility (arbitration as well as appellate arbitration). Increasing the number of centres shall reduce the travelling and other incidental costs to investors in case they choose to avail these facilities. The following is decided:

a. Stock Exchanges with nation-wide terminals shall set up investor service centres at Bangalore, Pune, Jaipur, Gaziabad, Lucknow, Gurgaon, Patna and Vadodara. These centres shall provide investor grievances redressal mechanism and arbitration facility (arbitration as well as appellate arbitration).

b. The investor service centres at Bangalore, Pune, Jaipur and Gaziabad shall be established before December 31, 2013.

c. The investor service centres at Lucknow, Gurgaon, Patna and Vadodara shall be made functional by June 30, 2014.

3. The stock exchanges are advised to:-

a. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately;

b. bring the provisions of this circular to the notice of the members of the stock exchange and also to disseminate the same through their website; and

c. communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Reports to SEBI.

4. SEBI inspection of stock exchange shall cover implementation of this circular.

5. This Circular is issued to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and shall come into effect immediately.