Stock Exchanges, Clearing Corporations and Depositories are directed to issue Master circulars consolidating their respective guidelines and issue this to all SEBI regulated entities
Securities and Exchange Board of India (SEBI) has directed the Stock Exchanges, Clearing Corporations and Depositories [collectively referred to as ‘Market Infrastructure Institutions’ (“MIIs”)] to issue their respective Master Circulars in a consolidated manner. The key points regarding such master circulars are as follows:
1. Master circulars will be issued by the MIIs consolidating all respective guidelines applicable as on March 31 of every year, segregated subject-wise.
2. The first Master Circular incorporating all the guidelines applicable as on March 31, 2023 shall be issued on or before June 30, 2023. Subsequently, MIIs shall update the Master Circular incorporating all guidelines issued during the financial year and issue the same on or before April 30 of each year.
3. Due care must be taken while including all the relevant guidelines. Following master circular are not to be included:
i. Bye-laws, Rules and Regulations issued by MIIs.
ii. Status of any compliance by the market participant.
iii. Actions taken against any entity.
4. Master Circular shall contain a list of all guidelines incorporated therein as well as a provision rescinding all such guidelines with effect from the date of implementation of the Master Circular. All such rescinded guidelines shall be archived on the respective websites of the MIIs.
5. Following savings clause must be provided in each master circular:
Notwithstanding such rescission,
a. Anything done or any action taken or purported to have been done or contemplated under the rescinded guidelines before the commencement of this Master Circular shall be deemed to have been done or taken or commenced or contemplated under the corresponding provisions of the Master Circular or rescinded guidelines whichever is applicable.
b. The previous operation of the rescinded guidelines or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded guidelines, any penalty, incurred in respect of any violation committed against the rescinded guidelines, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the rescinded guidelines have never been rescinded.”
6. The MIIs must make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of theabove decision immediately.
7. The MIIs must disseminate each Master Circular on their website and bring the same to the notice of all stakeholders including the Members, Depository Participants and the investors.
