Review of recommendation of Dr. L.C Gupta Committee on Derivatives

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....ear Sir, Sub: Review of recommendation of Dr. L.C Gupta Committee on Derivatives. This is in continuation of SEBI Circular No. FITTC/DC/CIR-1/98 dated June 16, 1998 and Circular No. IES/DC/ 8726/00 dated May 31, 2000 regarding the eligibility criteria, market structure and governance of Derivative Exchange/Segment and their Clearing House/Corporation. SEBI had setup an Advisory Committee ....

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....bsp; Separation of Cash and Derivative Segment of an Exchange and its Clearing House/Corporation. The Dr. L.C Gupta Committee on Derivatives had permitted exiting stock exchanges having cash trading to trade in derivative contracts through a separate segment with separate membership. Henceforth, the derivative segment of an exchange and its Clearing House/Corporation shall be separate from t....

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...., as regard the functional, operational and administrative modalities shall be at the discretion of the Exchange. The cash and derivative segment of an Exchange may have common personnel, trading terminal and infrastructure. 3.  The condition of mandatory appointment of a Chief Executive Officer (CEO) of the derivative segment and its clearing house / corporation, as specified in SEBI circ....