Executive Summary:
This notification, GSR 485E, issued by the Department of Economic Affairs, Ministry of Finance, on July 31, 2020, amends the Securities Contracts Regulation Rules, 1957. It's called the Securities Contracts Regulation Second Amendment Rules, 2020, and it comes into force on the date of its publication in the Official Gazette. The amendment modifies the proviso in subrule 1 of rule 19A, changing "two years" to "three years."
Key Points / Main Content:
* **Amendment Details:**
* The Securities Contracts Regulation Rules, 1957 are amended.
* In rule 19A, subrule 1, the term "two years" is replaced with "three years."
* **Regulatory Information:**
* Authority: Section 30 of the Securities Contracts Regulation Act, 1956 (42 of 1956).
* Notification: G.S.R. 485(E).
* Date of Notification: 31st July, 2020.
* The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 on February 21, 1957.
* This rule has been amended several times, as listed in the document.
Impact Analysis:
* **Securities Market Participants:**
* Impact: Affected by the change in the time period from two to three years as specified in rule 19A subrule 1 of the Securities Contracts Regulation Rules, 1957.
* Action Required: Adapt internal policies and procedures to reflect the updated time frame.
* **Central Government:**
* Impact: Responsible for enforcing the amended regulations.
* Action Required: Ensure compliance with the updated regulations.
Key Entities Referenced
Securities Contracts Regulation Act, 1956: An act of the Indian Parliament regulating securities contracts.
Securities Contracts Regulation Rules, 1957: Rules framed under the Securities Contracts Regulation Act, 1956.
Ministry of Finance: A ministry in the Government of India responsible for financial matters.
Department of Economic Affairs: A department within the Ministry of Finance.
New Delhi: The capital of India, where the notification was issued.
A. M. Bajaj: Additional Secretary, Financial Markets, as indicated in the document.
Securities Contracts Regulation Second Amendment Rules, 2020: Amendment to the Securities Contracts Regulation Rules, 1957.
Official Gazette: A government publication where official notifications are published.