N O T I C E
For the Attention of Trading Members:
The Inter-connected Stock Exchange of India
Limited (ISE) has been permitted to install and commission an RF MPLS Tulip Link
to the Cochin Stock Exchange Limited (CoSE) to enable members to participate in
the mock session of the ISE trading platform. The platform can also be used
when trading goes live on the ISE.
The Memorandum of Understanding executed by the
Exchange with the ISE under Section 13 of the Securities Contract (Regulation)
Act., would enable trading in permitted scrips listed on the CoSE as well as
those listed on the ISE and the other Exchanges participating in the trading
arrangement. The Exchange has requested approval from the Securities and
Exchange Board of India for the arrangement envisaged. The modalities
pertaining to the same are being discussed and will be finalized with the
approval of the Securities and Exchange Board of India.
The software required for the mock trading has
been installed on a computer in the trading floor. Members who are interested
may participate in the mock sessions (as per schedule enclosed) and communicate
your views / suggestions for improvement to the ISE. The guidelines for trading
have been downloaded on the system. Shri Francis Lewis K., Deputy General
Manager or Shri Jickson (Junior Officer - Systems Department) can be contacted
for any assistance or clarification required.
Executive Director (Officiating)
27th April, 2011
Kind Attn: All Members
Sub: Submission of Half Yearly Internal Audit
Report – no longer necessary
Ref: (1) Our notice No.SE/L/511/2008 dated
August 23, 2008
(2) Our notice No.SE/LIST/92/2010 dated
June 15, 2010
(3) Our notice No.SE/L/362/2010 dated
August 3, 2010
Brokers may please take note that the
requirement for submission of Half Yearly Internal Audit Report by the stock
brokers as stipulated vide our communications referred above is no longer
necessary. The requirement has been waived by the Governing Board of the
Exchange in view of the clarification issued by the Securities and Exchange
Board of India.
Since the requirement has been done away with,
with immediate effect, the internal audit report need not be submitted for the
half years beginning October, 2010.
Manager – Legal & Compliance
Ref . SE/A/042/
To all Members.
Sub : Details of
Registered stock brokers on SEBI website.
The details of the stock brokers of Cochin
Stock Exchange Ltd. registered with SEBI have been uploaded on the website
of the Securities and Exchange Board of India [www.sebi.gov.in]. Trading
Members are requested to view the details and ascertain whether the details
are accurate and up to date .The details can be accessed through
‘Recognized Intermediaries’ under ‘Intermediaries’ link.
Discrepancies if any, noticed, may be informed
in writing at the earliest and lodged with Mrs. Lisha. P. Sundaran, Assistant
Manager - Membership.
Manager- Legal &
8th September, 2010
The shareholding of a recognized Stock Exchange has to be in compliance with
the stipulations in the Securities Contracts (Regulation)
(Manner of Increasing and Maintaining Public Shareholding in recognized Stock
Exchanges) Regulations, 2006 [Regulation].
In line with the requirements laid down in the Regulation a clarification has
to be furnished by the shareholder as to whether he is an ‘associate’ in
relation to a shareholder having trading rights. The shareholder should also
disclose, if applicable, the names of persons / entities that may be construed
as ‘persons acting in concert’ as defined under Section 2 (e) of the Securities
and Exchange Board of India (Substantial
Acquisition of Shares and Takeover)
The disclosure and declaration in the format given should be submitted to the
Exchange office within 15 days from the date of acquisition of the shares. In
case the same is not furnished it will be construed that the shareholder has no
trading interest or association with trading entities. In the eventuality of
facts being determined to the contrary, the shareholder and associates shall be
liable to penalties as provided in the Regulations.
Manager – Legal & Compliance
Encl: Form of Disclosure
3rd August, 2010
N O T I C E
TO ALL MEMBERS OF THE EXCHANGE ACTIVE ON THE
Submission of half yearly Internal Audit Report by Stock Brokers
As already informed, SEBI has
issued circular No.MIRSD/DPS-III/Cir-26/08 dated August 22, 2008, wherein it had
been directed that all stock brokers should get complete internal audit carried
out by independent, practicing Chartered Accountant, Company Secretary or Cost
and Management Accountants on a half yearly basis. The scope of such audit
shall cover, inter-alia, the existence, scope and efficiency of the internal
control system, compliance of the provisions of SEBI Act. 1992, the Securities
Contract Regulation Act 1956, the SEBI (Stock Brokers and Sub-Brokers)
Regulations 1992, the ‘Know Your Client’ requirements etc. The requirements
stand further confirmed by SEBI vide its circular No.SEBI/MIRSD/Master
Cir-04/2010 dated 17.03.2010.
The members are required to forward the Internal
Audit Report with paragraph wise comments to the Stock Exchange within 3 months
from the end of each half year period. Accordingly, as on date the reports for
the following half years have fallen due for submission.
(1) 1st October, 2008 to
31st March, 2009 – Due on 30th June 2009
(2) 1st April, 2009 to 30th
September, 2009 – Due on 31st December 2009
(3) 1st October, 2009 to 31st
March, 2010 – Due on 30th June 2010
SEBI has advised the Exchange to submit an
action taken report on compliance of the above requirement. In view of the
mandatory stipulations as above, the Governing Board has decided to grant an
extension of time till 30th September, 2010, for all compliances
pertaining to the past periods.
Stock Brokers active on the subsidiary, who have
not submitted the Internal Audit Reports for the half year periods indicated
above are requested to submit the same latest by 30th September,
2010. Non-compliance will entail penalty of Rs.10/- per day of delay beginning
1st October, 2010 till 31st December, 2010.
Those who fail to submit the above mentioned three Internal Audit Reports by
31st December, 2010
will be liable to stringent action including suspension from trading in CSBL.
For the half years beginning April, 2010 a
penalty of Rs.10/- per day of non-compliance will be levied after the last
date, which is three months from the end of the respective half year. The
penalty will apply till the due date of the succeeding half year report.
Please check the link for the
full text of the relevant circulars (circular1,
master circular), the
scope of audit and the format of the audit reports. You may contact the
office of the Exchange for further clarifications, if required.
inspection of books of accounts of brokers
The SEBI master circular
No.SEBI/MIRSD/Master Cir-04/2010 dated 17.03.2010 has stipulated 100% inspection
of the active sub--brokers as against 20% presently in vogue. The Exchange
will conduct the inspection through its panel of auditors and the audit fee will
be debited from the members on an actual basis. All members active on the
subsidiary are requested to submit their books of accounts latest by 30th
October, 2010, for the financial year ended on 31.03.2010.
For Cochin Stock Exchange Ltd,
By Order of the Board of Directors,
Manager – Legal &
June 15, 2010
N O T I C E
To All Members
Sub: Half Yearly Internal Audit Report
As per the SEBI Circular SEBI/MIRSD/Master Cir-04/2010 dated March 17, 2010 the
member brokers should carry out complete internal audit on a half yearly basis
by an independent qualified Chartered Accountant, Company Secretary or Cost and
management Accountant who is in practice and does not have any conflict of
The internal auditor shall submit the audit report to the member, who shall
place it before its Board of Directors/Proprietor/Partners and shall forward the
same along with para-wise comments to the respective stock exchange/clearing
corporation within three months from the end of the half year period.
All Members active through the subsidiary are requested to submit the half
yearly internal Audit Report for the six months period ended on 31/03/2010 at
the earliest. Failure to submit the same will invite penalty/suspension of
trading as decided by the Governing Board of the Exchange.
SHALLY ROSE P. J
5th November, 2009
N O T I C
The Securities and Exchange Board of India has passed an
order against brokers who have defaulted in payment of fees in the manner
specified in the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992. The
Order No.WTM/MSS/MIRSD/25/2009 dated 29.10.2009, has been passed by the Whole
Time Member, SEBI, suspending the certificates of registration of the following
stock brokers for a period of six months or till the time outstanding
registration fees is fully paid, whichever is later.
Thomas P. Mathew
V.R. Surendran Nair
Vinod Kuamr S.
Beena Jose Pallickaprampil
A&P Capital Services Pvt. Ltd.
Thomas John K.
Kadavil Chacko Chacko
Gabin Capital Markets Ltd.
Dominic Paul Manavalan
Maliram Makharia Stock Brokers Pvt. Ltd.
Manyur Jadavji Manek
P.G. Hormese Tharakan
Sathya Krishna Kumar
Pioneer Securities Pvt. Ltd.
Vadakkekalam Joseph Mathew
Copy of the Order and the communication No.MIRSD/DR1/181607/2009
dated 3rd November, 2009 received from SEBI is enclosed.
Manager – Legal & Compliance
N O T I C E
The following brokers of the Exchange have been suspended
on the dates below mentioned for the reasons indicated against their names. It
is observed that the directions of the Governing Board and the stipulations in
the bye-laws and regulations have not been complied with by these brokers till
date. They have also not responded to the notices issued in this behalf.
Date of suspension
Subscription & other
arrears and BMC shortfall.
and BMC shortfall.
Varghese D. Pynadath
BMC shortfall and
P. Shajil Babu
Notice is hereby given to the brokers aforementioned
that the steps required to set right the non-compliance may be initiated and
completed within 15 days from the date of this notice. The report on compliance
will be placed for the consideration of the Governing Board Non-compliance
could entail penal measures including declaration as defaulters / expulsion,
without any further notice or warning.
Manager – Legal & Compliance
To all listed companies.
Sub: SEBI( Prohibition of Insider Trading)(Amendment)
The Securities and Exchange Board of India has vide
notification dated 19th
November, 2008 amended the Securities and Exchange Board of India (Prohibition
of Insider Trading) Regulations 1992. Pursuant to the amendment a few changes
have been made in the manner and extent of disclosure, the time period for
disclosure, penalty clauses and also in the schedules incorporated in the
Regulation. The full text of the Regulation and the amendment is available in
the following link.:
Companies listed with the Cochin Stock Exchange are advised
to comply with the amended regulations for future disclosure and the
compliance related filing.
Dated this the 30th day of December, 2008.
Shally Rose P.J.
Assistant Manager- Listing
23rd August, 2008
TO ALL MEMBERS
Dear Sir / Madam,
SEBI has issued circular No.MIRSD/DPS-III/Cir-26/08 dated
August 22, 2008 wherein it has been mandated that all stock brokers shall carry
out complete internal audit on a half yearly basis by independent qualified
Chartered Accountants. The scope of such audit shall cover, inter-alia, the
existence, scope and efficiency of the internal control system, compliance of
the provisions of SEBI Act., 1992, the Securities Contract Regulation Act, 1956,
the SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992, the ‘Know Your
Client’ requirements etc.
The first audit period shall be between the 1st
October, 2008 to March 31, 2008. All stock brokers are requested to ensure
compliance of the above mandatory requirements and file the audit reports with
the Exchange within 15 days after the stipulated audit periods.
circular is enclosed. You may contact the office of the Exchange for
further clarifications, if required.
Manager – Legal & Compliance
April 25, 2008
For the information of existing and prospective
Sub: Acquiring shares of Cochin Stock
The Cochin Stock Exchange Ltd. is today a demutualised entity, having been
demutualised in accordance with the tenets of the Cochin Stock Exchange
Ltd.(Demutualisation) Scheme, 2005(scheme). Subject to the provisions of Sub
Section 8 of Section 4(B) of the Securities Contract Regulation Act and the
Scheme and Securities Contracts (Regulation) (Manner of Increasing and
Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006
(Regulations), the Exchange has to ensure that atleast 51% of its Equity Share
Capital is continuously held by members of the ‘public’. The term ‘public’
includes any member or section of the public but does not include any
shareholder of the recognized stock exchange having trading rights therein or
any associate of such shareholder. The term associate assumes the meaning
given in definition 2(1) B of the regulations.
Investors are requested to note that no person shall directly or indirectly
acquire or hold more than 5% in the paid up equity capital of the Stock
Exchange at any time after the commencement of the regulations. It may also
be noted that no person shall either individually or together with persons
acting in concert with him, acquire and/or hold more than 1% of the paid up
equity capital of the Exchange unless he is a ‘fit and proper’ person and has
taken prior approval of SEBI for doing so.
In this context reference may also be had to SEBI
Circular No MRD/DSA/SE/Cir-09/08 dated April 17, 2008 wherein the term
shareholder having trading rights has been further clarified to mean as under:
"The term “shareholder having trading rights” would mean
a shareholder who has a trading interest in the stock exchange, whether directly
or indirectly through a person having trading rights.
A shareholder having a trading interest
“indirectly” in relation to a person having trading rights, would be understood
in the same manner as the term “associate” is in relation to a shareholder
having trading rights under regulation 2(1)(b) of the Securities Contracts
(Regulation) (Manner of Increasing and Maintaining Public Shareholding in
Recognised Stock Exchanges) Regulations, 2006".
All investors acquiring shares of the Exchange who have direct or indirect
trading interest are requested to notify details of their holdings and the
nature of their interest to the Exchange. It is hereby informed that the
Exchange reserves the right to direct any shareholder to disinvest their share
holding in the Exchange in such manner as may be discerned fit by the Exchange.
Existing shareholders who are associates of trading members or who have
indirect trading interest are required to send necessary intimation in this
regard to the Exchange. In the absence such intimation it will construed that
they have no trading interest or association with trading entities. In the
eventuality of facts being determined to the contrary, such shareholders and
their associates shall be liable to penalties as provide in the
regulations. The full text of the regulations is enclosed for perusal.
Manager – Legal & Compliance
March 19, 2007
Notice to Members
Sub: Divestment of Equity Shares of the
Reference to our Circular dated March 12, 2007 on the
above subject, the following persons shall be deemed as relatives in accordance
with Section 6 read with Schedule 1A of the Companies Act, 1956.
Meaning of “relative” u/s. 6
“S. 6. A person shall be
deemed to be a relative of another if, and only if,
they are members of a Hindu undivided
they are husband and wife; or
the one is related to the other in the
manner indicated in Schedule
Mother (including step-mother)
Son (including step-son)
Daughter (including step-daughter)
Son’s son’s wife
Son’s daughter’s husband
Daughter’s son’s wife
Daughter’s daughter’s husband
Brother (including step-brother)
Sister (including step sister)
22 Sister’s husband
Stock Exchange Ltd.
Legal & Compliance
October 6, 2006
NOTICE TO MEMBERS
SEBI has notified the SEBI (Stock Brokers and
Sub Brokers) (Third Amendment) Regulations 2006 vide notification No S.O.1600(E)
dated 25th September 2006. Schedule III A has been newly introduced and Schedule IV has been
By virtue of the new Schedule
IIIA , a new fee structure has been introduced. Since brokers are presently
ruled by Schedule III in the matter of payment of SEBI fee, the points of time
at which the new schedule III A would be applicable is as follows:
Schedule III A - Part
A – Applicability
1. This schedule shall apply to stock brokers
from the following points of time:
(a) All stock brokers who are granted
registration by the Board on or after the first day of October, 2006 –
upon grant of such registration;
(b) All stock brokers who were granted
registration by the Board on or after the first day of April, 2006, but before
the first day of October, 2006 – from the first day of October, 2006;
(c) All stock brokers who have not completed
five financial years from the date of grant of registration by the Board, as on
the thirty first day of March, 2006 – upon completion of ten financial years
from the date of grant of registration by the Board;
(d) All stock brokers who have completed five
financial years from the date of grant of registration by the Board, as on the
thirty first day of March, 2006 –
upon completion of the current block of five
financial years, within the meaning of item I(1)(c) of Schedule III;
(e) All stock brokers falling under sub-clauses
(c) or (d), who opt in accordance with clause 2 to be governed by the provisions
of this Schedule – from such date as may be specified by the Board.
2. Stock brokers falling under sub-clauses (c)
or (d) of clause 1 may opt to pay fees in accordance with this Schedule before
completion of the relevant time periods mentioned in those sub-clauses, by
exercising an option in writing to that effect and communicating it to the
Board, in such manner and within such time as may be specified by the Board.
The new fee
structure as described in Part B to Schedule IIIA is as
Nature of the securities transaction
Rate of fee
All sale and purchase transactions in
securities other than debt securities
0.0002 per cent of the price at which the
securities are purchased or sold (Rs. 20/- per crore)
All sale and purchase transactions in debt
0.00005 per cent of the price at which the
securities are purchased or sold (Rs. 5/- per crore)
However, the Stock Broker will
be liable to pay the fee that has accrued until the new rules become applicable.
The manner of payment
and recovery detailed in Part C to Schedule IIIA amongst
others emphasizes that the fee shall be paid during every calendar month to the
respective Stock Exchanges. In case the Stock Broker defaults the payment or
pays the fee belatedly, he shall be liable to pay interest @15% p.a. for every
month of delay or part thereof. He shall also be liable to any other action that
may be taken under the Act, Rules or Regulations.
In the result, Brokers who
desire to switch over to the new fee structure in accordance with the provisions
contained in Clause 1 (e) and Clause 2 of Part A to Schedule IIIA may exercise
an option in writing to that effect in the prescribed format and address the
same to the Exchange.
In this connection brokers are advised as follows:
As per sub clause 2 of Schedule III A of Regulations, Stock brokers
falling under sub clause (c) and (d) of clause 1 of Schedule III A of
Regulations, may opt to pay fees in accordance with this schedule with
effect from October 01, 2006 or April 01, 2007 for which written consent to be
given to the stock exchange on or before 31st day of October, 2006 or
28th day of February, 2007 respectively, in the
B. As per clause
5(1) (b) of Schedule III A of Regulations, fee is payable in respect of off
market transactions entered into by stock brokers and which are reported to that
stock exchange. The stock brokers having multiple memberships are required to
report off market transactions on the respective stock exchanges and shall be
required to pay the fees only at the one stock exchange as opted by the stock
broker. For this purpose the stock broker shall be required:
to express in writing the name of the stock exchange where the off market
transactions be included for the payment of fees.
to intimate the respective stock exchanges where he is having multiple
membership about his intention for inclusion of off market transaction in the
chosen stock exchange.
A declaration with respect to (A) and (B) above shall
also be given to the Exchange by the stock brokers.
PB: Kindly refer to the Securities and Exchange
Board of India (Stock Brokers and Sub-brokers) (Third
Amendment) Regulations 2006 and also SEBI’s Circular No.
MIRSD/DR-1/FC/Cir-15/2006 dated September 29, 2006 and the
corrigendum to the said circular.