Sebi tells exchanges to preserve documents

The Securities and Exchange Board of India (Sebi) on Thursday directed all stock exchanges to maintain and preserve the originals of specified books of account and documents till investigations by enforcement agencies reach their logical conclusion.

"Notwithstanding anything contained in the Securities Contracts (Regulation) Rules, 1957 (SCRR, 1957) and the Stock Broker Regulations, you are advised to preserve the originals of the documents, both in electronic and physical form, copies of which have been taken by CBI, police or any other enforcement agency during the course of any investigation till the trial is completed," Sebi said in a notice to exchanges.

In a separate notification to Central Depository Services Ltd (CDSL), the regulator also advised depositories to make sure that their constituents keep originals of such specified records are maintained and preserved for the specified periods.

At present, in terms of rules 14 and 15 of SCRR, 1957, every recognised stock exchange and its members are required to maintain and preserve the specified books of account and documents for a period ranging from two years to five years.

As per regulation 18 of Sebi (Stock Brokers & Sub-brokers) Regulations, 1992 (Stock Broker Regulations), every stock broker shall preserve the specified books of account and other records for a minimum period of five years.

All the stock exchanges were advised to implement this with immediate effect by making necessary amendments to the bye-laws and listing agreement.