Ss SHROFF
COLLEGE OF
ARTS & COMMERCE
SUBJECT:
Business Law
Class: S.Y.B.F.M.
th
Semester: 4
PRESENTATION ON:
The Securities Contracts
Regulation Act
HARDIK NATHWANI 27
SHASHANK PAI 28
SAGAR PANCHAL 29
DHARMIK PATEL 32
KUSH SHAH 39
SIDDARTH TAWDE 46
Meaning of Securities
The definition of 'Securities' as per the Securities Contracts
Regulation Act (SCRA), 1956, includes instruments such as
shares, bonds, scrips, stocks or other marketable securities of
similar nature in or of any incorporate company or body corporate,
government securities, derivatives of securities, units of collective
investment scheme, interest and rights in securities, security
receipt or any other instruments so declared by the Central
Government.
Securities may be represented by a certificate or, more typically,
"non-certificated", that is in electronic or "book entry" only form.
Certificates may be bearer, meaning they entitle the holder to
rights under the security merely by holding the security,
or registered, meaning they entitle the holder to rights only if he
appears on a security register maintained by the issuer or an
intermediary .
The company or other entity issuing the security is called the issuer. A
country's regulatory structure determines what qualifies as a security. For
example, private investment pools may have some features of securities,
but they may not be registered or regulated as such if they meet various
restrictions.
(d) 'option in securities' means a contract for the purchase or sale of a right
to buy or sell, or a right to buy and sell, securities in future, and includes a
teji, a mandi, a teji mandi, a galli, a put, a call or a put and call in securities;
(f) 'recognised stock exchange' means a stock exchange which is for the
time being recognised by the Central Government under section 4;
(g) 'rules', with reference to the rules relating in general to the constitution
and management of a stock exchange, includes, in the case of a stock
exchange which is an incorporated association, its memorandum and
articles of association;
Main Provisions:
Registration of Intermediaries:
(i) the rights of any member of the recognised stock exchange who
has entered into such contract in contravention of any such bye-laws,
and
(ii) the rights of any other person who has knowingly participated in
such transaction.
Power of central government to prohibit contracts in certain
cases-section 16
i. central government can declare that any contract for the sale or
purchase of any security shall not be made execpt with the
permission of the central government.
ii. Such declaration can be made by the government only if it is of the
opinion that it is necessary to prevent undesirable speculation in
specified securities in any state or area.
iii. Any agreement for the sale or purchase of securities shall be illegal if
made in contravention of the above provisions.
It implies that licensing can be made com plusory only in respect of state/area
which is not notified under section 13.
Thus this section makes provisions for issuing license to persons other
than members of stock exchanges,in area which are not notified under
section 13.
.
Listing in securities
BSE has set various guidelines and forms that need to be adhered to and
submitted by the companies. These guidelines will help companies to
expedite the fulfillment of the various formalities and disclosure
requirements that are required at various stages of
Public Issues
Initial Public Offering
Further Public Offering
Preferential Issues
Indian Depository Receipts
Amalgamation
Qualified Institutions Placements
securities listed on BSE has to comply with the listing
requirements prescribed by it. Some of the requirements are
as under:
[I] Minimum Listing Requirements for New Companies:
The following eligibility criteria have been prescribed effective August 1,
2006 for listing of companies on BSE, through Initial Public Offerings
(IPOs) & Follow-on Public Offerings (FPOs):
1.Companies have been classified as large cap companies and small cap
companies. A large cap company is a company with a minimum issue size
of Rs. 10 crore and market capitalization of not less than Rs. 25 crore. A
small cap company is a company other than a large cap company.
Applicability:
The above schedule of Listing Fee is uniformly applicable for all companies
irrespective of whether BSE is the designated stock exchange or not.
Payment date:
The last date for payment of Listing Fee for the year 2011-12 is April 30,
2011. Failure to pay the Listing Fee (for equity debt segment and/or Mutual
Fund) by the due date will attract interest @ 12% per annum w.e.f. May 1,
2011.
Service tax:
d) that fully paid shares shall be free from all lien and that in the case of
partly paid shares the Issuer's lien shall be restricted to moneys called or
payable at a fixed time in respect of such shares;
f) that any amount paid up in advance of calls on any share may carry
interest but shall not in respect thereof confer a right to dividend or to
participate in profits;
g) that option or right to call of shares shall not be given to any person
except with the sanction of the Issuer in general meetings.
h) permission for Sub-Division/Consolidation of Share Certificate.
(2)Submission of Application:
(a)For Issuers listing on NSE for the first time
Issuers desiring to list existing/new securities on the NSE shall make
application for admission of their securities to dealings on the NSE in the
forms prescribed in this regard as per details given hereunder or in such
other form or forms as the Relevant Authority may from time to time
prescribe in addition thereto or in modification or substitution thereof.
The listing fees depend on the paid up share capital of the Company.
The listing fees depend on the paid up unit capital of your Scheme:
0-100 16,000
100-300 29,000
300-500 47,000
500-1000 78,000
a) the Issuer has at least ten days prior to expiry of the prescribed or
stipulated period applied in writing for extension of time to the NSE
stating the reasons for non-compliance, and
b) the Issuer, having been allowed further time by the NSE, has before
expiry of the prescribed or stipulated period, published in a manner
required by the NSE, the fact of such extension having been allowed;
provided further that where the NSE has not allowed extension in
writing before expiry of the prescribed or stipulated period, the
request for extension shall be deemed to have been refused;
provided also that any such extension shall not release the Issuer of
its obligations to comply with the aforesaid requirements and
conditions.
(4)Supporting Documents
Distribution Schedules
Distribution Schedules duly completed in respect of each class and
kind of security in the form prescribed in Appendix E (Table I, II & III)
to this Regulation or in such other form or forms as the Relevant
Authority may from time to time prescribe in addition thereto or in
modification or substitution thereof.