Restructuring of the Subsidiary Management

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....ent The small stock exchanges were permitted to promote / float a subsidiary / company vide SEBI Circular no. SMD-II/Policy/Cir-37/99 dated November 26, 1999. SEBI has inspected subsidiary companies and has reviewed their functioning. SEBI is of the view that the Management Structure of the subsidiaries needs to under go change in order enable them to be able to provide a safe and transparent m....

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....rent exchange). The appointment, the terms and conditions of service, the renewal of appointment and the termination of service of CEO shall be subject to prior approval of SEBI. Reconstitution of Governing Board The Governing Board of the subsidiary company shall have the following composition: a) The CEO of the subsidiary company shall be a director on the Board of Subsidiary. The CEO s....

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....ge may forward the names of the persons to the SEBI for its approval. The SEBI shall, however have the right to nominate persons, whose names have not been forwarded by the governing body of the stock exchange. f) The Public Representatives to be appointed as directors shall hold the office for a period of one year from the date of assumption of the office or till the Annual General Meeting of ....

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....r the supervision of the trading activity of subsidiary company. Such mechanism shall include: a) Verification of compliance of margin payments and other risk management measures applicable to the subsidiary company as a broker member of another exchange. b) Reporting requirements between the subsidiary and exchange, such as placing quarterly reports on the financial and accounts of the subs....