In compliance with an order of the Delhi High Court, the Securities and Exchange Board of India has exempted all relatives of promoters of market intermediaries from obtaining the Unique Identification Numbers required for trading in the securities markets.
Sebi, in a recent circular, also said associates of specified intermediaries and their directors need not obtain UINs. Earlier, under the "fingerprinting" guidelines, Sebi had required all associates and family members of specified market intermediaries to register in the database.
For promoters, the word "associates" was proving to be logistical nightmare. However, Sebi has set a deadline of December 31, 2004, for companies and sub-brokers to obtain UINs. If they do not, they will not be allowed to trade in the market.
In the case of corporate entities, the promoters and directors have to obtain the UINs along with the corporate entity, before the specified date.
According to information available from the National Securities Depository Ltd (NSDL), 5,474 companies had obtained UINs by August 30, 2004, and 46,978 individuals had registered themselves in the database.
Some 500-odd brokers each from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have already obtained their identification numbers. A total of 7,000-odd market intermediaries have registered themselves in the database.
These UINs are being issued under the Sebi (Central Database of Market Participants) Regulations, 2003, which was introduced in order to keep a check on investors trading in the market and bring more transparency into the system.
The earlier Sebi circular had specified that spouses and other kin of key people in an organisation would have get UINs, but a number of market participants filed a public interest litigation against this.
Taking cognizance of this, the securities watchdog decided to make some amendments to its original MAPIN provisions and exempt close relatives from the definition of associates.
Mapin norms