Sebi tightens monthly reporting guidelines for stock exchanges

Our Markets Bureau

Mumbai, Dec 3: After almost five years, the Securities and Exchange Board of India (Sebi) has once again revised the monthly reporting format for the the stock exchanges (SEs). It was in 1996 that the Sebi had last made revisions in the monthly reporting structures of bourses.

The latest changes in the Monthly Development Report (MDR) of SEs, has made it imperative for SEs to report all the minute details of the respective exchanges to the capital market regulator.

In a communication to all the SEs, Sebi has asked them that they are required to submit their MDR in the revised format from November 2001, onwards. The revised format has been sent to the SEs and the regulator has asked them to submit the MDR within seven days from the close of the month.

The revised MDR is spread over two different section which covers almost all the activities of the SEs. Section I deals with the stastical part where SEs are required to submit the details of rolling settlements completed during the month.

The SEs have also been asked to submit the details of the source of funds for meeting shortfall if any, in case the settlement guarantee fund (SGF)/trade guarantee fund (TGF) has not been accessed for meeting the shortfall.

Section II of the MDR deals with the various aspects related to listing of companies, details about the governing board and statutory committee, details of specific purpose funds, regulatory measures taken by the SEs (including suspension of stocks and brokers as a part of disciplinarry action), inspection of books of accounts of members, details of complaints received from investors against companies and brokers/sub-brokers.

The SEs are expected to submit all these details in their MDR.
The regulator has also asked the SEs to furnish all details about the default of members and status on computerisation and related issues in MDR.

On the status of computerisation, the information provided by SEs includes the number of cities covered across the country, total number of trading terminals set up across the country, the number of trading terminals set up abroad, number of approvals granted for Internet trading, and details pertaining to disruption in trading.

Sebi has also asked the SEs to include any important decision taken by the governing board/council of management, along with the attendance details of public representatives and Sebi nominee directors on the governing body of the exchange in the MDR. It has also asked to include details regarding progress made in the implimentation of circulars issued by Sebi during the past three months.