Some Dealing Member Firms have indicated interest in changing their status of registration from Broker/Dealer to Broker only.

Consequently the Securities and Exchange Commission has requested Dealing Member Firms seeking a change of status to obtain a letter of “No Objection” from The Exchange.

Without prejudice to the Securities and Exchange Commission Rules and Regulations Pursuant to the Investment and Securities Act (SEC Rules), the following guidelines have been set out to aid the issuance of the said letter:

1. The letter written by the Commission to the Requesting Dealing Member Firm will be forwarded to The Exchange;

2. The Requesting Dealing Member Firm will forward details of its Proprietary and Nominee Accounts to The Exchange;

3. The Exchange shall confirm from the Central Securities and Clearing System Limited (CSCS) details of these Accounts submitted by the requesting Dealing Member;

4. Upon confirmation, The Exchange shall request the CSCS to transfer all such securities in the Proprietary to a Nominated Dealing Member Firm appointed by the Requesting Dealing Member and approved by The Exchange;

5. Upon the transfer, the Nominated Dealing Member Firm will be given instruction to dispose of all securities in the said Accounts;

6. The securities will be disposed by direct sale to the market and not by Cross Deals;

7. Proceeds of sales will be paid to the Requesting Dealing Member and evidence forwarded to The Exchange;

8. The Exchange shall confirm from the CSCS that the Requesting Dealing Member no longer owes any Proprietary;

9. The Exchange shall thereafter give its approval and advise the SEC of same.

Source: NSE