March 24, 2011
All Stock Exchanges / All Depositories/ All SEBI Registered Market Intermediaries
Sub: Addendum to Circular no. Cir/ISD/1/2011 dated March 23, 2011
This has reference to circular no. Cir/ISD/1/2011 dated March 23, 2011 issued regarding unauthenticated news circulated by SEBI Registered Market Intermediaries through various modes of communication.
1. The last paragraph in point 3 of said circular shall read as follows:-
• Employees should be directed that any market related news received by them either in their official mail/personal mail/blog or in any other manner, should be forwarded only after the same has been seen and approved by the concerned Intermediary’s Compliance Officer. If an employee fails to do so, he/she shall be deemed to have violated the various provisions contained in SEBI Act/Rules/Regulations etc. and shall be liable for action. The Compliance Officer shall also be held liable for breach of duty in this regard.
2. All other provisions of the circular No. Cir/ISD/1/2011 dated March 23, 2011 shall remain unchanged.
3. The Stock Exchanges are advised to:
a. bring the provisions of this circular to the notice of the Stock Brokers and also disseminate the same on their websites.
b. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordination with one another to achieve uniformity in approach.
c. communicate to SEBI, the status of the implementation of the provisions of this circular in their Monthly Development Reports.
4. The Depositories are advised to:-
a. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ;
b. bring the provisions of this circular to the notice of their DPs; and
c. disseminate the same on the website.
5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
6. A copy of this circular is available at the web page www.sebi.gov.in, under the category ‘Legal Framework’.
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