Cancellation of registration: SEBI may issue No Due Certificate after required confirmations, documents and settlement of outstanding fees.
Exchanges must request SEBI cancellation and issue of a No Due Certificate upon surrender of membership, confirming the broker owes no amount to SEBI, is disabled from trading, is not connected to defaulting members, has given an undertaking to remain liable for violations, and that no complaints, proceedings or investigations are pending; the request must include the original registration certificate (or indemnity), turnover details, and confirmations. SEBI may cancel registration and issue the certificate subject to remittance of accrued fees, provision of an undertaking to pay further fees or interest, and withholding of the member's security deposit until dues are cleared.

Investment valuation norms: mutual funds must supply daily debt security transaction data to standardise valuation across the industry.
SEBI requires all registered mutual funds to provide daily transaction-level data for specified debt instruments to an AMFI recommended agency in a prescribed format capturing transaction date, security name and type, coupon, staggered maturity/redemption dates and values, ratings, put/call option details, interest payment dates, volume, clean price and annualised yield, to enable daily matrix generation and improve valuation uniformity; issued under Regulation 77 and effective immediately.

Executive director financial powers mandated; broker directors barred from signing cheques or operating exchange bank accounts.
Exchanges must vest adequate financial authority in Executive Directors, with the Governing Board fixing cheque signing limits for executives and higher value authorizations reserved to authorized office bearers. Because brokers are barred from office bearer positions and broker directors cannot sign cheques, exchanges must expressly provide in their rules that no broker director may sign cheques or operate any bank accounts on behalf of the exchange.

Shortened settlement cycle requires strict trade confirmation and pay-in/pay-out deadlines to streamline market settlements.
Implementation of T+2 rolling settlement shortens the settlement cycle effective April 1, 2003 and prescribes firm deadlines: trade confirmations on T+1, processing and downloading of obligation files on T+1, pay-in of securities and funds by mid-morning on T+2, and pay-out by early afternoon on T+2. Depository Participants must accept and execute pay-in instructions within specified cut-offs; depositories must download pay-in files to clearing entities and complete pay-outs by the stated deadlines. Instructions require an execution date and will fail if account balances are insufficient at the pay-in deadline.

Rolling settlement cycle shortened to two-day settlement, requiring custodians to confirm trades and meet strict pay-in/pay-out timelines.
Implementation of T+2 rolling settlement effective April 1, 2003 shortens the settlement cycle and prescribes custodian duties: confirmations of trades by custodians by 11:00 a.m. on T+1 (exception window until 1:00 p.m. for late confirmations), issuance of physical instructions to DPs by 4:00 p.m. and electronic instructions by 6:00 p.m. on T+1, pay-in to be completed before 10:30 a.m. on T+2, and pay-out of securities and funds by 1:30 p.m. on T+2.

Amendment approval requirements: exchanges must supply objectives and board proceedings to obtain regulatory consent.
Applicants seeking approval for amendments to exchange and depository bye-laws and rules must provide the objective/purpose of the amendment, state any directive or guideline basis, identify consequential amendments to other provisions, and supply the governing board or council proceedings approving the change; documents other than bye-laws must be justified as part of a rule. Requests to waive pre-publication require a justification of urgency showing how public interest or trade interest is served to enable prompt regulatory disposal.

Delisting process: voluntary and compulsory rules require shareholder approval, transparent book building exit and investor compensation.
The Guidelines govern both voluntary and compulsory delisting to protect investors. Voluntary delisting requires shareholder special resolution, a public announcement, appointment of an independent merchant banker, application to the delisting exchange and adherence to a book building process for exit price with escrow funding and cash settlement. Promoters may accept or reject the discovered price but must restore public shareholding if they decline. Exchanges may compulsorily delist for prolonged suspension or non compliance after prescribed notice and representation procedures, and promoters must compensate holders at fair value determined by arbitration.

Listing agreement compliance: stock exchanges must initiate statutory enforcement action for breaches under securities law.
Exchanges must treat companies' failure to comply with listing agreement obligations as breaches of the statutory duty attendant on listing and initiate appropriate proceedings under the penal provisions of the Securities Contracts (Regulation) Act, using the Act's sanctioning mechanism to take suitable action against such non compliance.

Extension of time granted for appointment of common agency; compliance certificates must be filed or penalties may follow.
SEBI extended the deadline for issuer companies to appoint a common agency for share registry work until March 31, 2003 and required issuers to furnish a compliance certificate by April 07, 2003 to listed stock exchanges and depositories; the extension is a one-time relief and non-compliance will invite penal action under applicable Acts and Regulations.

Subsidiary governance reform: mandatory independent CEO and majority public representatives to strengthen market transparency and risk oversight.
Subsidiaries must appoint a Chief Executive Officer not concurrently holding any position in the parent exchange, with appointment, terms, renewal and termination subject to prior regulatory approval; the CEO sits on the subsidiary board and must not be a sub broker of the subsidiary or a broker of the parent exchange. The governing board must include at least 50% non member Public Representatives nominated by the parent exchange (subject to prior regulatory approval), who are persons of integrity with securities market competence, serve for one year or until the next AGM, and are subject to re nomination cooling periods. The parent exchange is responsible for subsidiary risk management and must establish supervisory mechanisms including margin verification, reporting, inspections and complaint handling.

Investment limit for FIIs in exchange-traded derivatives not triggered where no physical delivery occurs under regulatory clarification
Trading in exchange-traded derivatives by FIIs that does not result in settlement by physical delivery of underlying stocks does not attract the prescribed investment limits under the FII regulations; only transactions resulting in physical delivery are treated as investments for applying the investment ceiling. Custodians are directed to notify constituents and the circular is published on the regulator's website.

Settlement cycle reduction mandates accelerated trade settlement and stricter operational requirements for exchanges and brokers across market participants.
Shorten the rolling settlement from T+3 to T+2 effective April 1, 2003, with a prescribed operational timetable: custodial confirmation and obligation-file generation on T+1, pay-in and pay-out on T+2 with intra-day cut-offs. Exchanges must provide late-confirmation windows with deterrent charges, systems for handling shortages to meet pay-out, byelaw amendments requiring broker disbursement within 24 hours, alternative clearing for non-dematerialised shares, restrictions and penalties on client ID changes, and promote automation and online interfaces; exchanges must submit implementation roadmaps.

Broker fee compliance: transitional partial-payment concession ends and members must remit fees under turnover-based rules.
Brokers were permitted, under a transitional concession, to remit at least 50% payment facility of principal fees payable on turnover for cash market activity and execute an undertaking to pay the balance with interest within a deferred period; exchanges must inform members that this concession will terminate after the stated deadline and that fees must be remitted in conformity with the Stock Broker Regulations.