Section 8(4A) in Securities Contracts (Regulation) Rules, 1957
(4A)A company as defined in the Companies Act, 1956 (1 of 1956), shall also be eligible to be elected as a member of a stock exchange if-(i)such company is formed in compliance with the provisions of section 12 of the said Act;(ii)such company undertakes to comply with such financial requirements and norms as may be specified by the Securities and Exchange Board of India for the registration of such company under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);(iii)[* * *] [Omitted by GSR 749 (E), dated 12.10.1994.](iv)the directors of the company are not disqualified from being members of a stock exchange under [clause (1) [except sub-clause (b) and sub-clause (f) thereof] or clause (3) [except sub-clause (a) and sub-clause (f) thereof]] [Substituted by GSR 790(E), dated 07.11.1994.] and the Directors of the company had not held the offices of the Directors in any company which had been a member of the stock exchange and had been declared defaulter or expelled by the stock exchange; and(v)not less than two directors of the company are persons who possess a minimum two years' experience :(a)in dealing in securities; or(b)as portfolio managers; or(c)as investment consultants.
