ANNEXURE – 3

Constitution and Deliberations of the Securities Markets Infrastructure Leveraging

Expert Task Force

1. Constitution of the Task Force

1.1. SEBI, through a Press Release dated 23 rd April, 2004, announced the constitution of
the Task Force. The Press Release is provided below :

SECURITIES AND EXCHANGE BOARD OF INDIA

PRESS RELEASE

A High level task force chaired by Dr. P J Nayak, Chairman and Managing Director of UTI Bank has been
constituted by SEBI to carry out a thorough `health check` on the Securities markets infrastructure
encompassing all segments of the markets (viz. equities, debt, derivatives, fund products) and covering
all market participants such as exchanges, trading platforms, clearing and settlement systems, payment
systems, depositories, issue houses (registrars) and other intermediaries.

The mandate of the task force named Securities Markets Infrastructure Leveraging Expert Task Force
(SMILE Task Force) is as follows :

1) To review the present infrastructure, diagnose the deficiencies and inadequacies and recommend
cutting-edge solutions to upgrade infrastructure, standards of processes and skills considering the
potentially high growth rates for the Indian economy in general and the anticipated high rise in the
volumes in securities markets transactions, multiplicity of products and growing number of
participants from within India and from outside;

2) To recommend best practices in setting up, maintaining and upgrading securities markets
infrastructure – hardware and software including business continuity plans;

3) To recommend solutions for scalability of infrastructure and skills to embrace diversification into
products like commodities, foreign exchange etc;

4) To recommend improvised solutions for seamless and secure technological interfaces for
transaction processing in the securities markets;

5) To recommend appropriate delineation of role and obligations of the market participants in the light
of the above.

The members of the task force are :

1) Dr. P J Nayak, Chairman and Managing Director, UTI Bank Ltd., Chairman of the Task Force.
2) Prof. Sarda, IIT Mumbai.
3) Mr. C B Bhave, Managing Director, National Securities Depository Ltd.,
4) Mr. Nachiket Mor, Executive Director, ICICI Bank Ltd.
5) Mr. Ravi Narain, Managing Director and CEO, National Stock Exchange of India Ltd.
6) Dr. Manoj Vaish, Executive Director and CEO, The Stock Exchange, Mumbai.
7) Mr. Sanjay Nayar, CEO, Citi Bank.
8) Mr. M R Ramesh, Managing Director, Managing Director, Clearing Corporation of India Ltd.
9) Mr. Cyril S. Shroff, Amarchand Mangaldas and Suresh A. Shroff & Co., Advocates and
Solicitors.
10) Mr. Indrajit Gupta, Managing Director, SBI Capital Markets Ltd.
11) Dr. Vidyasagar, Executive Vice President, Tata Consultancy Services, Hyderabad.
12) Mr. Alok Vajpeyi, President, DSP Merril Lynch Fund Managers.
Mr. Pratip Kar, Executive Director, SEBI will be the Member Secretary of the Task Force.

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1.2. Shri R. Gandhi, Chief General Manager-in-Charge, Department of Information
Technology, Reserve Bank of India was on 21 June, 2004, nominated to participate in
the deliberations of the Task Force by Reserve Bank of India.

2. Deliberations of the Task Force

2.1 The Task Force has hitherto held 9 meetings to discuss issues pertaining to the
Primary Market. This first Report of the Task Force thus covers issues pertaining to
the primary market infrastructure. A press release dated May 12, 2004 was issued to
seek suggestions from the institutions and public for the consideration of the Task
Force.

2.2 The Task Force also met several stakeholders in the primary market public issue
process, including merchant bankers, brokers, bankers to the issue, registrars and
other persons knowledgeable about the primary market during various stages of the
Task Force’s deliberations. The list of such market participants is indicated below :

S.No. CATEGORY NAME OF THE PARTICIPATING ENTITY

1. MERCHANT BANKERS Ø Association of Merchant Bankers of India (AMBI).

Ø SBI Capital Markets
Ø J M Morgan Stanley (Pvt.) Ltd.
Ø Kotak Mahindra Capital Co. Ltd.
Ø DSP Merrill Lynch Ltd.
Ø ICICI Securities Ltd.
Ø Enam Financial Consultants (Pvt.Ltd.
2. REGISTRARS Ø Registrars Association of India (RAIN)
Ø MCS Ltd.
Ø Karvy Computer Share (Pvt.) Ltd.
Ø Cameo Corporate Services Ltd.
3. INVESTOR ASSOCIATIONS Ø Investors’ Grievances Forum
4. BANKERS TO THE ISSUE Ø Central Bank of India Ltd.
Ø IDBI Bank Ltd.
Ø HDFC Bank Ltd.
Ø Central Bank of India.
5. BROKERS Ø Motilal Oswal Securities Ltd.
Ø Enam Financial Consultants (Pvt.) Ltd.
Ø SSKI Securities (Pvt.) Ltd.
Ø ICICI Securities Ltd.
Ø IL&FS Investsmart.
6. OTHER REPRESENTATIVES Ø Shri Prithvi Haldea, MD, PRIME Database.
Ø Smt. Sucheta Dalal, Journalist
Ø Dr. L.C. Gupta, Director, Society for Capital
Market Research and Development.