DEPUTY GENERAL MANAGER
Marketing Regulation Department
E-mail : sundaresanvs@sebi.gov.in

SEBI/MRD/SE/SK/Cir-41/2003
October 28, 2003

The Executive Directors / Managing Director / Administrators
of All Stock Exchanges

Dear Sir / Madam,

1.		Based on the report of the Committee on Model Rules and Byelaws of Stock Exchanges, SEBI has finalized the Model Byelaws which would be applicable to all stock exchanges. The same (from Chapter 1 to Chapter 17 as given in Annexure) is available on the SEBI website www.sebi.gov.in (link given in the copy of this circular on the web) and is also being sent by email to all stock exchanges.
2.		You are advised to amend your Bye-laws in line with the Model Bye-laws in so far as the bye-laws of your exchange are inconsistent with the basic principles and concepts set out in the Model Bye-laws.
3.		The exchanges are directed to
3.1 make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable. 3.2 bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website, for easy access to the investors; and 3.3 communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of October 2003.
4.		The exchanges are required to give a declaration to SEBI in respect of adoption / implementation / incorporation of provisions of the Model Bye-laws in the byelaws of the exchange, on completion of the exercise.
5.		This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Section 10 of the Securities Contracts(Regulation) Act 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

Sd/-

V S SUNDARESAN

Encl : As Above

ANNEXURE

COVER PAGE

INDEX OF CONTENTS

Chapter 1 : Preamble

Chapter 2 : Definitions

Chapter 3 : Preliminary

Chapter 4 : Listing of Securities

Chapter 5 : Trading System

Chapter 6 : Trading on the Exchange

Chapter 7 : Transactions by Trading Members

Chapter 8 : Rights and Liabilities of Trading Members, Sub-brokers and Clients

Chapter 9 : Market Surveillance and Investigation

Chapter 10 : Risk Management

Chapter 11 : Clearing and Settlement Procedure

Chapter 12 : Settlement Guarantee Fund

Chapter 13 : Compliance

Chapter 14 : Investors' Complaints / Grievances

Chapter 15 : Arbitration, Dispute Resolution and Conciliation

Chapter 16 : Investors' Protection Fund

Chapter 17 : Investors' Services Fund