Introduction: SEBI released the clarification regarding LLP as members of Stock Exchange under SEBI (Stock Brokers and Sub Brokers) Regulations, 1992.
About New Circular:
Whether LLP is considered as member of Stock Exchange ?
Securities Contract Regulation Rules 1957does not explicitly mention as Limited Liability Partnership are eligible to be admitted as members of Stock
Exchanges.
Exchanges.
But Rule 8 of SCRR includes Limited Liability Companies and Partnerships firms are eligible to be admitted as members of StockExchanges.
Now, LLPs are similar to LLC and Partnership firms as per circular issued by SEBI because LLP is a Body Corporate under LLP Act,
2008.
2008.
Conclusion: LLP can admit as member of stock exchange if LLP complying with the conditions as per Rule 8 (4A) of the SCRR.
Regards
PL.Manickam
CAclubindia
