Change in Status and Constitution of the Sub-brokers, Surrender of Certificate of Registration of Sub-brokers and Change of Affiliation of Sub-brokers

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....ny of the following events happening: A. Change in status and constitution 1. Rule 5 of the SEBI (Stock-brokers and Sub-brokers) Rules, 1992 prescribes the conditions for grant of certificate of registration to a sub-broker. Rule 5 (c) of the said Rules prescribes that in case of any change in the status and constitution, the sub-broker shall obtain prior approval of the SEBI to continue to buy, sell or deal in securities in any stock exchange. The rule is applicable inter alia, in the following cases: a)      Conversion of the sub broker from one form to another (Proprietorship, Partnership Corporate and Reconstitution of Partnership.) b)      Merger / Amalgamation of sub broker....

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....ming sub broker is granted registration by SEBI, the outgoing sub-broker can continue to trade. The procedure prescribed in section B below shall not apply for surrenders contemplated in this section. B. Surrender of registration by sub-broker 3. An application for surrender of registration has to be made to SEBI by the sub-broker, along with the following: (i)   the letter of de-recognition issued by the Exchange; (ii)  a certificate from the affiliating broker that the sub broker has been disabled from trading; (iii)   copies of two advertisements issued by the affiliating broker informing the investors/ general public about the cancellation of his/their sub broker(s) and advising them not to dea....

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....viso to regulations 16(i) of the SEBI ((Procedure for Holding Inquiry and Imposing Penalty) Regulations, 2002. If the surrender application is accepted by SEBI, registration would be cancelled by SEBI with effect from the date of de-recognition by the Exchange. Until SEBI cancels the registration and issues no due certificate, the deposit, if any, of the sub- broker shall not be released to the sub-broker by the Exchange. C. Forwarding of application 5. On receipt of the application(s) for prior approval and / or for surrender and / or registration, as the case may be, of the sub-broker(s), the Exchange shall forward the same to SEBI within a month of receipt of the application by the Exchange only after it has approved the same an....

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....oker must submit applications for change of affiliation from the outgoing broker to the incoming broker, along with its application for fresh registration. The sub-brokers shall enter into a fresh stock broker - sub-broker agreement with the incoming broker in terms of regulation 15(1)(c) of the said Regulations and a copy of the same shall be enclosed with the application for change of affiliation. The application for change of affiliation shall also be accompanied with the original certificate of registration of the sub-broker for carrying out the necessary changes. Though the affiliation of the sub-broker will change, it shall be liable for all its activities before the change of affiliation. E. Change in name of sub-broker or affilia....