SEBI

Investments made not disqualification for membership of stock exchange

Investments made by a member shall not be construed as business in deciding qualifications for membership of a recognised stock exchange

Rule 8 and of the Securities Contracts (Regulation) Rules, 1957 provide inter alia that no person shall be eligible to be elected or once elected continue as a member of a stock exchange seeking recognition if he  is  engaged  as  principal  or  employee  in  any  business  other  than  that  of securities or  commodity  derivatives except  as  a  broker  or  agent  not involving any personal financial liability unless  he undertakes on admission to sever his connection with such business.

However, it is provided that nothing herein shall be applicable to any specified corporations, bodies corporate, companies or institutions.

The Ministry of Finance has notified the Securities Contracts (Regulation) Amendment Rules 2025 amending the Securities Contracts (Regulation) Rules 1957.

It has been added that the investments made by a member shall not be construed as business except when such investments involve client funds or client securities, or relate to arrangements which are in the nature of creating a financial liability on the broker.

Download SEBI Notification Click Here >>

Share

Recent Posts

  • Income Tax

Payment of imprest whether a transfer within the meaning of section 269ST

Payment of imprest whether a transfer within the meaning of section 269ST – case remanded for determination In a recent…

2 days ago
  • ICAI

CA Misconduct – Order quashed as judgment not passed by same members who heard arguments.

CA Misconduct – Appellate order quashed as final judgment was not passed by same members who heard arguments. In a…

3 days ago
  • Insurance

Deceased homemaker can not be considered as dependant for award of compensation under MV Act – SC

Deceased homemaker can not be considered as dependant for award of compensation under MV Act. Courts to award a composite…

4 days ago
  • Income Tax

CIT notice u/s 263 quashed as AO rightly took DVO value of property as actual sale price

CIT Revision notice u/s 263 quashed as the Assessing Officer rightly taken DVO value of property sold as actual sale…

6 days ago
  • GST

Extension of timeline for implementation of Ship To GSTIN & Voluntary Closure of E-Way Bill functionalities

Extension of timeline for implementation of mandatory "Ship To GSTIN" and Voluntary Closure of E-Way Bill functionalities GSTN Advisory dated…

6 days ago
  • Income Tax

No protective addition required when additions is confirmed in hands of searched person – ITAT

No protective addition required in the hand of a third party when additions have been confirmed in the hands of…

6 days ago