MoU u/s 13 of SCRA with National Stock Exchange of India
The proviso to Section 13 of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA”) inserted by Securities Laws (Amendment) Act, 2004 with effect from 12th October 2004, enables contracts in securities to be entered into between members of two or more stock exchanges subject to such terms and conditions as may be stipulated by respective stock exchanges with prior approval of Securities and Exchange Board of India (SEBI).
Madhya Pradesh Stock Exchange Limited (MPSEL) has entered into an agreement with NSE u/s 13 of SCRA that enables MPSE members to trade on NSE platform in the securities listed and permitted on NSE and to provide nationwide access to MPSE listed securities.
The salient features of the MoU are briefly enumerated as under:
Trading members at MPSE:
All MPSE members will go live on new trading platform under section 13 of SCRA.
All MPSE members will be entitled to trade on not only MPSE listed companies but also all companies listed/traded at NSE.
Status and Privileges of a Main Broker
All MPSE members will be able to issue contract notes in their name
All MPSE members can appoint sub brokers
MPSE Listed companies:
MPSE compliant listed companies will be traded again at NSE platform under permitted category.
Existing Listed companies not listed at NSE can get themselves listed at MPSE and be traded at NSE under permitted category.
Listing agreement compliances and listing to be submitted at MPSE
All norms relating to trading, risk management, circuit filter, trade to trade etc. will be as per NSE norms.