Brief History JKB Financial Services Ltd. is a govt. Company by virtue of being a 100%
subsidiary of J&K Bank Ltd.(a Govt. Company). It is the wholly owned subsidiary of Jammu and Kashmir Bank Ltd which and was incorporated on 26-08-2007. The JKB Financial services Ltd is authorized to carry on business of stock broking in India and elsewhere and to act as agents, dealers, brokers and sub-brokers and to become a member of any recognised stock exchange, trade association, clearing house NSDL/CDSL etc for which the company has got prior approval of RBI.
NEED TO ESTABLISH JKB FINANCIAL SERVICES
JKB Financial Services Company was established by JK Bank Ltd. as a part of its diversification process into para banking activities. The ever growing demand for the para banking activities in the state has provided gateway rather necessitated the need to establish the financial services centres in the state. After establishing JKB Financial services in the state, it would be able to provide a wide variety of services on its own like mutual fund distribution, insurance distribution, broking services etc. all these services were conducted by JKB bank but through a fee based consultancy like HSBC. By establishing its own services business, it will be able to cater to the demand of most of the desiring investors. Financial inclusion scheme has necessitated the need to include most of the population under organized financial system so that it brings about an overall development in the financial structure of the country. A largely imbalanced structure of the financial system in india has done a lot in disturbing the development of the country. A well developed financial system paves way for a more equitable and growing economy. JKB Financial services aim the same so as to aware people about the various financial solutions and makes people educated in terms of financial know-how. In order to smoothly conduct the services relating to broking, trading etc, financial services companies need to register themselves with the exchanges they are going to trade with. It provides a sort of regulatory compliance to the companies as they work under a specified framework. Procedure to register with NSE and BSE so as to act as their intermediary to carry on trading services is provided below with the necessary required documents as sample.
Procedure to file Membership Application to act as intermediary to Bombay stock exchange (BSE)
JKB Financial Services Co. Ltd. proposes to obtain membership of NSE/BSE Ltd. The company also proposes to act as depository participant of NSDL/CDSL respectively. Various procedures involved in the registration of the JKB Financial Services to act as a deposit based member would be covered in the subsequent editions. This procedure is related to the Bombay Stock Exchange Ltd. Various guidelines are issued by BSE from time to time so as to detail about the procedure and statutory requirement for the companies to act as intermediary to BSE. Various formats are also published by the BSE in the form of a brochure to assist the companies pursuing to become the members of the depository and to avail the services of the stock exchange. JKB Financial services applied for the registration to act as an intermediary for BSE. The various documents needed to be submitted by the Institution include: All the documents mentioned in the checklist The exchange however directs the institutions to take care of some specific things for which undertakings and other statutory documents have to be submitted. Which are enclosed therein.
What is Deposit Based Membership?
BSE provides deposit based membership to its clients. Under this process any institution who wants have registration with the exchange needs to deposit a specified amount with the exchange which is refunded only at the time of exit by the company.
Eligibility and Qualifications of becoming a member of BSE Ltd.
Who are eligible to become a member?
Applications can be made by individuals and corporate, who are eligible to become a member of BSE Ltd., in accordance with the Rules, Bye-Laws & Regulations of the BSE Ltd., and subject to
such terms and conditions as decided by BSE Ltd., from time to time. The minimum net worth requirement: y Cash Segment: Rs.30 lakhs y Derivatives Segment amount as prescribed for different category of membership by the Exchange and as per L. C. Gupta format y The Minimum Capital requirement is Rs.30 lakhs. y BSE Ltd., reserves the right to reject any application without assigning any reason whatsoever. y The decision of BSE Ltd., will be final and binding in all respects. The various clauses are put forward by the BSE so as to make the institutions adhere to rules and regulations and to ensure that only the eligible parties become a part of it.
Terms and Conditions to become a deposit based member
The application form in the prescribed format, complete in all respects should be accompanied by a Demand Draft/Pay Order for Rs.1 lakh drawn in favor of "BSE Limited" towards earnest money deposit which will not bear any interest. However the amount is refunded to unsuccessful candidates. The Amount of Rs. 10,000 is deducted by the exchange as processing fee. After the submission of the details of the application formats are sent by the BSE to the SEBI for Approval, the offer for the completion of the proceedings by the successful candidate is made by the BSE. The successful applicants, whose offers are accepted by BSE Ltd., will be required to pay the balance amount of the deposit at the time of commencement of business. The interest free deposit of the Trading Members will not have any Lock-in period. However, any trading member who wants refund of Interest Free Deposit of Rs.10 lakhs shall be first required to apply for surrender of trading membership right. Before applying for surrender of trading membership right, such member shall ensure voluntary closure of business. The voluntary closure should be at least for a period of 6 months prior to the date of surrender. Where the trading terminals of the member have remained deactivated for a period of 6 months prior to the date of surrender it shall be construed as closure of business. On receipt of application for surrender, the Exchange will give Public Notice in newspaper to enable the investors /public to lodge claims, if any, against surrendering
trading member, giving a period of 3(three months) from the date of Public Notice. However, this condition would not apply to the members who have not commenced business or have not activated their trading terminals at all. Further, the amount of Interest Free Deposit will be refunded only after recovering outstanding amount if any by BSE Ltd., and after getting NOC from SEBI. In addition to the aforesaid amount of Rs.10 Lakhs (Interest free deposit) the member has to pay the following amounts at the time of commencement of business : 1) Base Minimum Capital (Refundable) Rs.8.75 lakhs Cash/Cash equivalent). 2) Trade Guarantee Guarantee/FDR) Fund Rs.10, 00,000/- (Rs.1.25 lakhs in cash +
(Refundable)
Rs.10,00,000/-
(Cash/Bank
3) Admission Fees (Non refundable) 4) Rs.5, 000/- (Add: Service Tax as applicable): if the applicant applies in all segments. 5) Rs.2, 50,000/- (Add: Service as applicable): if the applicant applies only in the cash segment. 6) Annual Subscription applicable) (Non refundable) - Rs.25,000/- (Add : Service Tax as
7) Initial Contribution towards Trade Guarantee Fund (Non refundable) Rs.10,000/- (Add : Service Tax as applicable) -And other amount as required by BSE Ltd.
Documents to be submitted by the concerned institution with the exchange so as to complete the process of registration. The company provides a checklist of the documents to be submitted to the exchange and annexures are to be enclosed with the relevant documents.
A Checklist of the documents to be enclosed with the application format are given below.
Check List for TRADING MEMBERSHIP
Sr. No
Documents to be given
Documents submitted
Remarks
1. 2. 3. 4. 5. 6. 7. 8.
Appendix A II Auditors Certificate Annexure - II (Details of the Company) Memorandum and Articles of Association Prospectus of statement in lieu of prospectus Short History of the company and its activities on letter head of company signed by directors. Capital Structure *(Authorised capital, Issued capital and subscribed capital (On the members letter head) Shareholding Pattern in respect of each shares. (Sr. No. | Name of the shareholder | Percentage of Holding and Amount Holding) *(In case a member has a corporate entity as its shareholders then the shareholding pattern of that corporate entity would required to be submitted till the last individual shareholder is identified) Board resolution authorising the directors to apply for membership. Net worth Certificate (certified by C.A.) & statement of calculation as per the annexure attached. * Balance Sheet (Including All schedules) in concurrent to the Net worth statement submitted. * NOC / Status report from the Stock Exchange (s) where an applicant company is a member (s). Details of all the Directors of the applicant company on letter head signed by directors. (Form C 3) Certified PAN Card copy Details of Infrastructure SEBI UNDERTAKINNG IN RESPECT OF INFRASTRUCTURE
9. 10. 11. 12. 13.
14. 15. 16.
A certificate to be submitted on the letterhead of the applicant as per following format: This is to certify that as per SEBI (Stock Brokers and Sub Brokers ) Regulations, 1992 Chapter II Rule 5 (b) has the necessary infrastructure like adequate office space, equipments and man power to effectively discharge the broking activities. Signature (Designated Director) with Rubber Stamp Place : Date : 1. Documents to be submitted for Derivative Segment Networth Certificate & Computation of Networth as per L C Gupta Format (Minimum Networth Requirement : TM 25 Lacs, TCM - 3 crores, SCM -1 crore) to mention the following on the top of networth certificate. 'Networth certificate as per Regulation 16 (C) of SEBI stock Broker and Sub Brokers.' Details of the Compliance Officer 2 Point Undertaking Certified copy of Passed Certification Programme for atleast two approved users. Consent Letter from Associate Clearing Member (in case of Trading Members only)
2. 3. 4.
5.
Documents To Be submitted by each of the designated Directors
Documents to be submitted by each Designated Directors Name of the Designated Director Documents to be given Sr. No. 1. 2. 3. Annexure I Board Resolution Authorising appointment of designated director A brief Bio Data of the Designated Director (self signed on plain paper / on letter head of individual director) Certificates of educational Qualifications( CA Certificates relating to the Experience in the Capital market If the Designated Director is a member of any other Stock Exchange in his individual capacity then the Designated Director has to submit NOC/Status report of that particular Exchange also. If an associate concern/entity is a member of any other stock Exchange then the NOC / Status report of that particular exchange is also to be submitted Documents submitted Remarks
4. 5. 6.
7. 8.
Copy of PAN Card. A certificate to be submitted on the letterhead of C.A. as per following format: This is to certify that of possesses a minimum of 2 years capital market experience as required under the provisions contained in Rule 8 sub-rule 4A sub-clause (v) of Securities Contract (Regulation) Rules, 1957.
9.
Signature. Copy of Form No. 29 and 32 filed with ROC.
10. Certificate of BCFM/NCFM Exam conducted by BSE/NSE
1. Infrastructure Details and Undertaking.
a) Office Premises b) Computers c) Telephone/Telex/Fax d) Employees e) Affiliates and Associates f) including foreign collaborations
g) Any other aspect considered relevant
CHECKLIST FOR OBTAINING MEMBERSHIP FOR EQUITY DERIVATIVES (along with the Membership of Cash Segment of the Exchange) 1. 2 Point Undertaking 2. SEBI Registration Form for FORM AA 3. Certified copy of Passed Certification Programme for atleast two approved users. 4. Consent Letter from Associate Clearing Member (in case of Trading Members only)
Undertaking to be given on the letterhead signed by designated director
There are no enquiry/adjudication/action/prosecution is/was pending/completed against or any of its directors/partners/proprietor, (and if yes details thereto). has never been declared defaulter or is associated with any person/entity/ broker who has been declared defaulter by any stock exchange in India
There are no enquiry/investigation has been initiated/ pending against by any stock exchange in India.
1.
Age proof (copy of PAN card) and copy of educational qualifications Minimum Age : 21 Years completed as on date of Application.
2.
Certificates of experience
3.
Your bio-data giving name, educational qualification, date of birth, age as on date of application and complete details of experience in capital market.
4.
Networth Certificate alongwith concurrent Balance Sheet as on as on such date not older than 3 months preceding the date of application (duly certified by C. A.) Statement of investment (quoted & un-quoted) at cost & market price as on such date for which latest documents are submitted as mentioned in point No. 4 above (Duly certified by C.A). List of Receivables/debtors which are due and outstanding for more than six months (Duly certified by C.A.)
5.
6.
7.
Status Report from the Stock Exchange of which you are a member.
8. 9.
Certificate of BCFM/NCFM Examination conducted by BSE Ltd./NSE All SEBI undertaking mentioned in Page 7 of the Basic Guidelines and Application Form.
10. SEBI Form A & AA mentioned in Page 29-41 of the Basic Guidelines and Application Form 11. Such other documents as may be called for and be required by the Exchange.
Individuals
In case any individual wants to register with the exchange to carry on broking services with the exchange, various set of questions are provided by the exchange for the registration process. Questionnaire to be submitted is given as:
QUESTIONNAIRE (To be answered by Individual candidates applying for membership)
What is your name? What is your father s name? What is your surname? What is your date of birth? Are you a citizen of India? Have your been adjudged bankrupt or has a receiving order in bankruptsy been made against you or have you been proved to be insolvent at any time? 7. Have you at any time compounded with your creditors? 8. If so, how many annas in the rupee have you paid to your creditors? 9. Have you been at any time convicted of an offence involving fraud or dishonesty? 10. Are you associated with or a member of or a subscriber to or shareholder or debenture holder in or connected through a partner or employee with any organization, institution, association, company or corporation in India where dealings in securities are carried on? If so please give full particulars. 11. Are you aware that on election to membership of the exchange you will have to sever forthwith all such association or connection? 12. Are you a director, partner or employee of any company whose principal business is that of dealings in securities? If so, please give full particulars. 13. Are you aware that on election to membership of the exchange you will have to sever forthwith your connection as such director, partner or employee? 14. Are you associated with or a member of or a subscriber to or a shareholder or debenture holder in or connected through a partner or employee with any other exchange or commercial organization? If so, please give full particulars.
1. 2. 3. 4. 5. 6.
15. Are you aware that on election to membership of the exchange you will have to sever forthwith all such association or connection? 16. Have you been at any time rejected by or expelled from or declared a defaulter on any stock exchange? If so, please give full particulars. 17. Have you been at any time rejected by or expelled from or declared a defaulter on any other stock exchange or commercial organization? If so please give full particulars. 18. Are you engaged as principal or employee in any business other than that of securities? If so please give full particulars. 19. Are you aware that on election to membership of the exchange you will have to cease forthwith to be so engaged. 20. Do you do business in shares on your own account ? 21. Do you have any constituent? 22. Do you, for the most part or exclusively, do business on your own account or on behalf of constituents? 23. Have you over had or have you now any forward transactions in shares or other commodities? 24. If so, please state with through or whom. 25. Have you any liabilities which are overdue? 26. With whose money are you applying for membership of the exchange. 27. Do you pay income-tax? If so, since when? 28. If admitted to the membership of exchange, will you carry on business in the market? 29. Do you propose to carry on business on the exchange in your own name? 30. Is the signature on the application yours? 31. Have you read the Rules, Bye-laws and Regulations of the exchange? 32. Are you aware that any misstatement or misrepresentation or suppression of facts in connection with application for membership or breach of any undertaking or condition of admission to membership entails expulsion and forfeiture of membership?
Membership Application to act as intermediary for NSE
National Stock Exchange membership has almost the same criteria as that of the BSE albeit certain changes. The following is the classification according to NSE in respect of various clearing members. Members are admitted in the following categories:
y
Only Capital Market ± This category of membership entitles a member to execute
trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment.
y
Capital Market and Futures & Options Trading A membership in this
category entitles a member to o execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and o Execute trades on his own account as well as on account of his clients in the Futures & Options segment, but, clearing and settlement of trades executed through the Trading Member would have to be done through a Trading-cum Clearing Member or Professional Clearing Member of the Exchange.
Capital Market and Futures & Options Trading & Self Clearing ±
A membership in this category entitles a member to
o o o
execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and execute trades on his own account as well as on account of his clients and to clear and settle trades executed only on his own account as well as on account of his clients in Futures & Options segment.
o o
Capital Market and Futures & Options Trading and Clearing ± A
membership in this category entitles a member to Execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and o Execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member in Futures & Options segment.
y
Only WDM A membership in this category acquires a right to execute trades and to clear and settle the trades executed by the members in the WDM Segment. This membership can be also taken in combination with any of the 4 categories as stated above.
y
Professional Clearing Members ± A membership in this category entitles a member to clear and settle trades of such members of the Exchange who choose to clear and settle their trades through this member.
The different categories of membership in the Currency Derivatives segment is as follows:
y
Only trading membership in Currency Derivatives
A membership in this category entitles a member to execute trades on his own account as well as on account of his clients in the Currency Derivatives segment, but, clearing and settlement of trades executed through the Trading Member would have to be done through a Trading-cum Clearing Member or Professional Clearing Member of the Exchange.
y
Trading and Clearing membership in Currency Derivatives - A
membership in this category entitles a member to execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member in Currency Derivatives Segment.
y
Professional Clearing Members ± A membership in this category entitles a
member to clear and settle trades of such members of the Exchange who choose to clear and settle their trades through this member.
Eligibility Criteria
The exchange has set a criteria so as to select which entities are eligible to act as intermediary to the exchange. The criteria as per NSE is provided below: The following are eligible to apply for membership subject to the regulatory norms and provisions of SEBI and as provided in the Rules, Regulations, Byelaws and Circulars of the Exchange published from time to time.
y y y
Individuals Partnership Firms registered under the Indian Partnership Act, 1932; Corporations, Companies or Institutions or subsidiaries of such Corporations, Companies or Institutions set up for providing financial services.
y
Banks for Currency Derivative Segments Such other person as may be permitted under the Securities Contracts (Regulation) Rules 1957.
Other Eligibility Criteria
1. Individuals (Sole Proprietor)
CRITERIA Age Status Education Experience Minimum age : 21 years Indian Citizen At least HSC or equivalent qualification Applicant should have an experience for not less than two years as a partner with, or an authorised assistant or authorised clerk or remisier or apprentice to, a member.
2. Partnership Firms
Where the applicant is a partnership firm, the applicant shall identify a Dominant Promoter Group as per the norms of the Exchange at the time of making the application. Any change in the shareholding of the partnership firm including that of the said Dominant Promoter Group or their sharing interest shall be effected only with the prior permission of NSEIL/SEBI.
CRITERIA Age Status Education Designated Minimum age of partner(s) : 21 years Registered Partnership firm under Indian Partnership Act, 1932 Partners should be at least HSC or equivalent qualification Identify at least two partners as designated partners who would be taking
Partners Designated Partners Experience
care of the day to day management of the partnership firm Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial services or treasury, broker, sub broker, authorised agent or authorised clerk or authorised representative or remisier or apprentice to a member of a recognised stock exchange, dealer, jobber, market maker, or in any other manner in dealing in securities or clearing and settlement thereof. Identify partner¶s sharing interest as per Exchange DPG norms
Dominant Promoter Norms
3. Corporations, Companies or Institutions
A Company as defined in the Companies Act, 1956 (1 of 1956), shall be eligible to be admitted as a member of a Stock Exchange provided:
1. such company is formed in compliance with the provisions of Section 12 of the said Act 2. it undertakes to comply with such other 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) 3. the directors of such company are not disqualified for being members of a stock exchange under clause (1) of rule 8 [except sub-clauses (b) and (f) thereof] or clause (3) of rule 8 [except sub-clauses (a) and (f) thereof] of the Securities Contracts (Regulation) Rules, 1957 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
CRITERIA Age Status Minimum age of director(s) : 21 years Corporate registered under The Companies Act, 1956 (Indian)
Minimum Paid Rs.30 lakhs up Equity Capital
Designated Directors Education Designated Directors Experience
Identification of at least two directors as designated directors who would be managing the day to day trading operations Each of the Designated Directors should be at least HSC or equivalent qualification Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial services or treasury, broker, sub broker, authorised agent or authorised clerk or authorised representative or remisier or apprentice to a member of a recognised stock exchange, dealer, jobber, market maker, or in any other manner in dealing in securities or clearing and settlement thereof. Identify dominant group as per Exchange DPG norms
Dominant Promoter Norms
4. Professional Clearing Member (PCM)
The following persons are eligible to become PCMs of NSCCL for Futures & Options and/or Capital Market Segment provided they fulfill the prescribed criteria: 1. SEBI Registered Custodians; or 2. Banks recognised by NSEIL/NSCCL for issuance of bank guarantees
5. Banks
Further to Circular No: 648 with Download No: NSE/MEMB/11148 dated August 19, 2008, the eligibility membership criteria for banks in the Currency Derivatives segment is as follows: Banks authorized by the Reserve Bank of India under section 10 of the Foreign Exchange Management Act, 1999 as AD Category - I bank are permitted to become trading and clearing members of the currency futures market of the recognized stock exchanges, on their own account and on behalf of their clients, subject to fulfilling the following minimum prudential requirements:
Minimum net worth of Rs. 500 crores. Minimum CRAR of 10 per cent. Net NPA should not exceed 3 per cent. Made net profit for last 3 years.
The AD Category - I banks which fulfill the prudential requirements are required to lay down detailed guidelines with the approval of their Boards for trading and clearing of currency futures contracts and management of risks. AD Category - I banks which do not meet the above minimum prudential requirements and AD Category - I banks which are Urban Co-operative banks or State Co-operative banks can participate in the currency futures market only as clients, subject to approval therefore from the respective regulatory Departments of the Reserve Bank. The requirement of approved users of being certified as per the certification as applicable in the F&O segment is waived off for banks for a period of one year from the date of the issuance of SEBI circular SEBI/DNPD/Cir- 38 /2008 dated August 06, 2008.
6. Other applicable eligibility criteria
1. At any point of time the applicant has to ensure that either the proprietor/one designated director/partner or the Compliance Officer of the applicant entity should be successfully certified either in Securities Market (Basic) Module or Compliance Officers (Brokers) Module or the relevant module pertaining to the segments wherein membership of the Exchange has been sought.i.e. i. ii. iii. Capital Market (Dealers) Module Derivatives Market (Dealers) Module National Institute of Securities Markets (NISM) Series I Currency Derivatives Certification Examination
The above norm would be a continued admittance norm for membership of the Exchange.
1. An applicant must be in a position to pay the membership and other fees, deposits etc, as applicable at the time of admission within three months of
intimation to him of admission as a Trading Member or as per the time schedule specified by the Exchange.
2. The Exchange may specify such standards for investor service and infrastructure with regard to any category of applicants as it may deem necessary, from time to time.
Who cannot become a member?
Further to the capital and network requirements, No entity shall be admitted as a member/partner or director of the member if
. It has been adjudged bankrupt or a receiver order in bankruptcy has been made
against him or he has been proved to be insolvent even though he has obtained his final discharge
a. it has compounded with his creditors for less than full discharge of debts b. it has been convicted of an offence involving a fraud or dishonesty c. it is engaged as a principal or employee in any business other than that of
Securities, except as a broker or agent not involving any personal financial liability or for providing merchant banking, underwriting or corporate or investment advisory services, unless he undertakes to severe its connections with such business on admission, if admitted
d. it has been at any time expelled or declared a defaulter by any other Stock
Exchange or he has been debarred from trading in securities by an Regulatory Authorities like SEBI, RBI etc e. it incurs such disqualification under the provisions of the Securities Contract (Regulations) Act, 1956 or Rules made there-under so as to disentitle such persons from seeking membership of a stock exchange f. it incurs such disqualification consequent to which NSE determines it to be not in public interest to admit him as a member on the Exchange, provided that in case of registered firms, body corporates and companies, the condition from (will apply to, all partners in case of partnership firms, all directors in case of
companies; NSE may from time to time modify / expand the scope of activities that could be considered as relevant experience for the above purpose.
Deposit & Net worth Requirements (Corporates)
DEPOSIT STRUCTURE (Rs. IN LAKHS) Segment Capital Market Wholesale Debt Market Type of Membership TM & SCM TM & SCM Cash- Non-Cash Cash Non-Cash NSEIL NSEIL NSCCL NSCCL 85 150 15 25 Total 125 150 Net Worth 100 200
TM Futures & Options TM & SCM TM & CM PCM
25 25 25 -
-
25 25 25
25 25 25
25 75 75 50
100 100 300 300
TM Existing Members TM & CM TM Currency Derivatives Segment NCDEX Members TM & CM TM Other Members PCM TM & CM
2 2 2 2 2 2 -
8 8 10.5 13 13 18 -
25 25 25 25
25 25 25 25
10 60 12.5 65 15 70 50
100 1000 100 1000 100 1000 1000
* TM = Trading Membership. * TM & SCM = Trading and Self Clearing Membership. * TM & CM = Trading and Clearing Membership. * PCM = Professional Clearing Membership.
Deposit & Net worth Requirements(Individual / Partnership Firms) DEPOSIT STRUCTURE (Rs. IN LAKHS) Segment Capital Market Wholesale Debt Market Futures & Options Type of Membership TM & SCM TM & SCM TM TM & SCM TM & CM Cash- Non-Cash Cash Non-Cash NSEIL NSEIL NSCCL NSCCL 26.5 150 25 25 25 6 25 25 17.5 25 25 Total 50 150 25 75 75 Net Worth 75 200 75 100 300
TM Existing Members Currency Derivatives Segment TM & CM TM NCDEX Members TM & CM TM Other Members TM & CM
2 2 2 2 2 2
8 8 10.5 13 13 18
25 25 25
25 25 25
10 60 12.5 65 15 70
100 1000 100 1000 100 1000
* TM = Trading Membership.
* TM & SCM = Trading and Self Clearing Membership. * TM & CM = Trading and Clearing Membership. * PCM = Professional Clearing Membership.
Unlike the BSE, the membership in the NSE is not deposit based rather it is fee based. Thus the entities eligible to act as members to the exchange need to deposit fee to cover for the charges made by the exchange. Various details regarding the fee to be submitted are given below:
Fees and Charges :
y
Application Processing Fees: Rs. 10,000/- Plus applicable Service Tax.
y y
Admission Fees : Rs. 5,00,000/- Plus applicable Service Tax Annual subscription charges (Capital Market Segment): o For Corporate - Rs. 1,00,000 P.A. o For Individuals/Partnership Firms - Rs. 50,000 P.A. Advance minimum transaction charges (Futures & Options segment): P.A.
y
Rs. 1, 00,000
Pictorial Representation of the procedure to act as intermediary
Proforma of the documents to be attached with the application to be submitted with the exchange are provided as enclosement with this document
Membership Application
(On the letterhead of the applicant member) To be signed by at least two directors in case of corporate
Date: _______________
y y y y y y y
To, The Managing Director, National Stock Exchange/National Securities Clearing Corporation Exchange Plaza Bandra-Kurla Complex Bandra (E) Mumbai 400 050
Subject: Application for Membership
Dear Sir, I/ We am/are desirous to become the Member of the National Stock Exchange of India Ltd and/or National Securities Clearing Corporation Ltd. I/We hereby apply for the said membership, and undertake to conform to and to abide by the Memorandum & Articles of Association and the Rules, Bye-Laws, Regulations, Business-Rules, Circular, Notifications and office orders, issued by the Exchange/Clearing Corporation from time to time. I/We shall be liable for all contracts and transactions in the exchange entered by us or by our authorized representatives and I/We shall comply with all requirements of the Exchange relating to settlement thereof. I/we shall also abide by all decisions of the Exchange/Clearing Corporation with respect to the operation of the Exchange/Clearing Corporation and would perform accordingly in meeting my/our financial, regulatory and operational responsibility as decided of the Exchange/Clearing Corporation from time to time.
APPLICATION FORM FOR MEMBERSHIP OF NATIONAL STOCK EXCHANGE LTD/NATIONAL SECURITIES CLEARING CORPORATION LTD
Please tick the requisite segment and type of membership:
CAPITAL MARKET SEGMENT WHOLESALE DEBT MARKET SEGMENT
FUTURES & OPTIONS SEGMENT
Trading member Trading and Self Clearing member Trading and Clearing member Professional Clearing member
CURRENCY DERIVATIVES SEGMENT
Trading member Trading and Clearing member Professional Clearing member
1. Name of Applicant (In BLOCK Letters) :
2. Constitution: Individual/Partnership firm/Corporate/Others(please specify)
3. Date of Incorporation/Registration: DD/MON/YYYY
4. Permanent Account No :
5. Brief Description of principal activity of the applicant :
6. Brief description of group, if any, to which the applicant belongs :
7. Registered Office : (Applicable only in case of corporate/partnership firms) Flat/Door/Block no. Name or Premise/ Building Road/Street/Lane/Post Office Area/Locality/Taluka City District State/Union Territory Pincode STD Code Telephone No. Mobile No. Fax E-mail ID Website
8. Correspondence/Mailing address (Pls give the complete details as point no. 7, in case the same is different from registered address) Flat/Door/Block no. Name or Premise/ Building Road/Street/Lane/Post Office
Area/Locality/Taluka City District State/Union Territory Pincode STD Code Telephone No. Mobile No. Fax E-mail ID Website
9. Details of the Chief Executive Officer/Managing Director/Managing Partner/Proprietor Name Designation Tel. No. Fax No. Mobile No. E-mail ID PAN
10. Net worth of the applicant is Rs.__________ Lakhs as on ___________ (date-DD/MON/YYYY) (The Networth certificate duly certified by chartered account is enclosed)
11. Name of the Exchange (s) on which the applicant/ partner / designated director / dominant promoter(s) /group company /associate company is a member
Sr. No. 1 2 3
Name of the Exchange
Registration no. granted by Regulator(s)
(Details provided in Annexure C 2)
12. Details of compliance officer Name Mobile No. Email PAN
13. Name and address of the bankers and the facilities availed from such banks. (Please enclose reference letters from each bank)
14. Details of Income Tax Paid. (Copy of the latest Income Tax Assessment Order enclosed)
15. Details of fund based activities, for eg.:
Sr. No. Activity Details
a) b) c) d) e)
Leasing / Hire Purchase Lending Intercorporate Deposits Loans and Advances Any other type of Lending Other activities (Please give full details
f)
16. Details of processing fees and admission fees paid in favour of NSEIL. Payment in the form of Demand Draft / Pay order / Cheque Instrument no. Issuing Bank Amount Instrument date
I/We hereby state that the particulars given in the application form are true, correct and complete to the best of my/our knowledge and information. I/We also state that no relevant material fact has been suppressed.
I/We also hereby undertake that I/we have never been declared/rendered incompetent to enter into contract under any law in force in India. Further, I/we have never committed any act which may render us liable to be wound up and I/we have reported about provisional liquidator or receiver or official liquidator appointed to us, if any, by a competent court.
I/We undertake that all court cases against applicant / directors / partners / promoters /staff have been disclosed by us and that none of them is / are involved in any financial irregularities. I /partners / promoters / directors have never been adjudged bankrupt or have been proved to be insolvent at any time. I/we have disclosed if involved, all litigations, suits or proceedings and any financial liability of contingent or unascertained nature. Further, the applicant/partners/promoters/directors have never been convicted of an offence involving fraud or dishonesty or financial irregularities and have never been pronounced guilty of a criminal offence involving moral turpitude.
I/We have disclosed and reported all the details in regard to inquiry / investigation, if any, that has been conducted by any authorities including government agencies against applicant / promoters / partners / directors etc., during past 10 years and the findings of the concerned agencies available with us have been disclosed fully along with this application.
I/We undertake that any misstatement or misrepresentation or suppression of facts in connection with this application for trading/clearing membership or breach of any undertaking or condition of
admission to trading/clearing membership entails rejection of application or of trading cum clearing membership.
I/We shall pay the required fee and deposits to the Exchange and submit the necessary documents as required by the Exchange for my/our seeking the trading/clearing membership of the Exchange/ Clearing Corporation. I/We also agree to provide Exchange/ Clearing Corporation with all such documents as may be called for and be required by Clearing Corporation from time to time. I/We hereby undertake that we will immediately notify the NSE/Clearing Corporation of any change in information provided in the application.
I/We hereby undertake to inform NSE/Clearing Corporation about any change in the above mentioned facts within 15 days of the change taking place/coming to our knowledge, whichever is earlier.
For and on behalf of the Board Signatories* (With name in Block Letter) 1. 2.
Encl: 1. Disclosures, if any 2. Current status / No Objection Certificate from the concerned agency which is carrying out inquiry/investigation, if any.
*To be signed by: Proprietor in case of individual. Two Partners in case of firm (Partners who are named as authorized signatories in the Letter appointing authorized signatories). Two directors in case of corporate (Directors who are named as authorized signatories in Board Resolution).
Annexure : C-1
Certificate dated _________ submitted by ____________________ to NSEIL/NSCCL
CERTIFICATE
This is to certify that the Net worth of M/s./Mr./Ms.______________________as on _____________as per the statement of computation of even date annexed to this report is Rupees______________ only).
We further certify that:
M/s./Mr./Ms._________________ is not engaged in any fund-based activities or business other than that of securities. Existing fund based assets, if any have been divested from the books of account and have not been included for the purpose of calculation of networth.
the computation of networth based on my / our scrutiny of the books of accounts, records and documents is true and correct to the best of my / our knowledge and as per information provided to my / our satisfaction.
the computation of networth is in accordance with the method of computation prescribed by SEBI as per Regulation 16C of the SEBI (Stock Brokers & Sub-Brokers) Regulations, 1992 / Regulation 16L of the SEBI (Stock Brokers & Sub-Brokers) (Amendment) Regulations, 2008. (strike off whichever is not applicable)
Place: For (Name of Accounting Firm) Date:
Name of Partner/Proprietor
ANNEXURE C-1A
Computation of Networth of Clearing Members of Futures Segment / Currency Derivatives Segment as part of Membership Requirements
The method of computation of Networth as prescribed by SEBI as per Regulation 16C of the SEBI (Stock Brokers & Sub-Brokers) Regulations, 1992 / Regulation 16L of the SEBI (Stock Brokers & Sub-Brokers) (Amendment) Regulations, 2008. (strike off whichever is not applicable) is as follows:
Capital + Free Reserves Less: Non-allowable assets viz., (a) (b) (c) (d) (e) (f) (g) (h) (i) Fixed Assets Pledged Securities Member s card Non-allowable securities (unlisted securities), Bad deliveries Doubtful Debts and Advances* Prepaid expenses, losses Intangible Assets 30% of Marketable securities
*Explanation:
Includes debts/advances overdue for more than three months or given to associates.
Annexure C 1B.
Computation of Networth of Trading Members as part of Membership Requirements
The trading members are required to provide the Networth Certificate as per the format provided in Annexure C - 1 The trading members have the option of calculating their networth as per any of the two methods given below. However, once a trading member chooses one of the two given methods, he will have to continue to compute his networth using the same method unless a change of method is specifically approved by the Exchange.
Method 1: The networth should be computed as per this method by following a definition of networth adopted by practising Chartered Accountants for finalisation of accounts. For clarification purpose, the basic procedure to be employed in calculation of the networth and the treatment of each and every component of the balance sheet as per the book value or the books of accounts of the trading member are given in Annexure C 1C.
Or
Method 2: By valuation of their assets on the following basis :
A.
Listed ( Quoted) investments in the name of the applicant (at market value) (Detailed list to be enclosed)
B. C. D. E.
Margin of 30% on market value of listed (quoted) Investments Net value of listed Investments (A) (B) Investments in unlisted (unquoted) companies (as per Note No. 3) Margin of 50% on (D)
F.
Net value of unlisted Investments (D) (E)
G. Other Investments (at cost) like PPF, NSC at current value, Statutory deposits with the Exchange, Deposits with registered NBFCs, Bank FDs H. Total Net Investments (C) + (F) + (G)
I. Market Value of Land & Building component of the Fixed Assets (Full details of such assets like survey number, location, address, extent of land & building to be furnished) J. K. L. M. N. O. Margin on I at 50% Net value of such fixed assets (I J). Debtors not exceeding 3 months + Cash & Bank balance Current Liabilities Long term liabilities Networth (H + K + L) (M + N)
Notes :1. For computation of loans and advances as a component of current assets, all advances / loans other than those arising out of securities dealing have to be excluded. Only such loans and advances arising due to the securities dealings are to be included as current assets for the purpose of networth computation.
2.
Valuation of fixed assets for the consideration of networth would have to be certified by government approved valuers and the value would hold good for 3 years unless a fresh valuation is submitted. Only those items of land & building that are in the name of the trading member as well as in the possession of the trading member shall be included under the head (I) - Land & Building component of the Fixed Assets. Those properties that are leased out by the trading member or taken on lease shall not be included for computation of networth. Fixed Assets other than Land & Building shall not be included for the purpose of computation of networth.
3.
Valuation of unlisted investments would be at fair value of the said investment, i.e. the average of the earning value and the break up value . For this purpose : -
a)
The break up value means the equity capital and reserves as reduced by intangible assets and revaluation reserves, divided by the number of equity shares of the investee company.
b)
The earning value means the value of an equity share computed by taking the average of profits after tax as reduced by the preference dividend and adjusted for extra-ordinary and non-recurring items, for the immediately preceding three years and further divided by the number of equity shares of the investee company and capitalised at the following rate :In case of predominantly manufacturing company, eight percent; In case of predominantly trading company, ten percent; and In case of any other company, including an NBFC, twelve percent; If, an investee company is a loss making company, the earning value will be taken at zero.
(For e.g. EV for an NBFC with capitalisation rate of 12%, is earning per share multiplied by 100/12) 4. Details of items comprising investments, current assets, current liabilities and long term liabilities should be given separately.
5.
Current assets should exclude loans to related entities, bad and doubtful debts and debts outstanding for more than 3 months, advance against capital assets, pledged securities / assets, prepaid expenses, bad deliveries and also intangible assets.
6.
Debtors should be distinguished as debtors arising from securities operations and others.
7.
Value of membership card / Deposits with any other Stock Exchange is to be excluded for the purpose of computation of networth.
8.
Advance / Investment with or debts due from persons notified under Special Court (Trial of Offences Relating to Transactions in securities) Act, 1992 are to be excluded for the purpose of computation of networth.
ANNEXUREC-1C Annexure Items Fixed Assets : Goodwill Intangible assets Land Treatment for Net Worth computation
Buildings
Leasehold
Plant and Machinery
Furniture and Fittings
Development of Property
Patents, designs Vehicles
Trademarks
and
Computers etc.( Hardware and Software ) Value of other stock exchange card Investments : Deposit with other stock exchange Value of other stock exchange card Govt. / Trust Securities
Not to be considered for Net Worth computation. Not to be considered for Net Worth computation To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation. Valuation as per AS 13. Not to be considered for Net Worth computation. Not to be considered for Net Worth computation. To be considered at book value per statement of Assets & Liabilities / Balance Sheet
Debentures or Bonds
To be considered at book value per statement of Assets & Liabilities / Balance Sheet Shares (Fully paid-up and partly To be considered at book value per paid-up) statement of Assets & Liabilities / Balance Sheet Shares/Debentures and Bonds To be considered at book value per of Subsidiary companies statement of Assets & Liabilities / Balance Sheet Immovable properties To be considered at book value per statement of Assets & Liabilities / Balance Sheet Investments in capital of To be considered at book value per partnership firms statement of Assets & Liabilities / Balance Sheet Debit Balance in P&L A/c Not to be considered for Net Worth computation. Current Assets: NSE Security Deposit To be considered at book value per statement of Assets & Liabilities / Balance Sheet NSE VSAT & UPS Deposit To be considered at book value per statement of Assets & Liabilities / Balance Sheet Stock - in - trade To be considered at book value per statement of Assets & Liabilities / Balance Sheet Sundry Debtors To be considered at book value per -more than six months statement of Assets & Liabilities / Balance -others Sheet Less: Provision for bad debts To be considered at book value per statement of Assets & Liabilities / Balance Sheet Cash on hand To be considered at book value per statement of Assets & Liabilities / Balance Sheet Fixed deposit with bank To be considered at book value per statement of Assets & Liabilities / Balance Sheet Bank balances To be considered at book value per statement of Assets & Liabilities / Balance Sheet Deposit with MTNL To be considered at book value per statement of Assets & Liabilities / Balance Sheet
Deposits for property / flat
Deposits adjustable against rent
Margins paid to NSE
Interest accrued on Investment
Margins paid to other stock exchange Loans and Advances
Advances and Subsidiaries
Loans
to
Advances and Loans to Partnership Firms in which the company or any of its subsidiaries are partners Bills of Exchange To be considered at book value per statement of Assets & Liabilities / Balance Sheet Advances recoverable in cash or kind or for value to be received (rates, taxes, insurance, etc.) Balances on Current A/c with Managing Agents or Secretaries and Treasurers Balances with Customs, Port Trust, etc. (where payable on demand) MISCELLANEOUS EXPENDITURE (to the extent not written off ) Preliminary expenses To be considered at book value per statement of Assets & Liabilities / Balance Sheet
To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation. To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet
To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation.
Not to be considered for Net Worth computation. Expenses including commission Not to be considered for Net Worth or brokerage on underwriting or computation. subscription of shares or debentures
Discount allowed on the issue of shares or debentures Interest paid out of capital during construction Development expenditure not adjusted Other items LIABILITIES :
Not to be computation. Not to be computation. Not to be computation. Not to be computation.
considered for Net Worth considered for Net Worth considered for Net Worth considered for Net Worth
Share Capital : Equity / Preference Paid up Capital Not to be considered for Net Worth computation. Share Application To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Preference Share Capital Liability at book value if redeemable within 36 months. Reserves & Surplus : Capital Reserves(not including Not to be considered for Net Worth revaluation reserves) computation. Capital Redemption Reserve Not to be considered for Net Worth computation. Debenture Redemption Reserve Not to be considered for Net Worth computation. Sinking Fund Reserve Not to be considered for Net Worth computation. Revaluation Reserves To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet General Reserve Not to be considered for Net Worth computation. Share Premium Not to be considered for Net Worth computation. Profit c/f from P&L A/c Not to be considered for Net Worth computation. Secured Loans : Debentures To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Loans and Advances from To be considered as liability at book value Banks per statement of Assets & Liabilities / Balance Sheet
Loans and Subsidiaries
from To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Other Loans and Advances To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Interest accrued and due on To be considered as liability at book value Secured Loans per statement of Assets & Liabilities / Balance Sheet Unsecured Loans : To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Fixed Deposits To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Loans and Advances from To be considered as liability at book value Subsidiaries per statement of Assets & Liabilities / Balance Sheet Short Term Loans and To be considered as liability at book value Advances (Banks & Others) per statement of Assets & Liabilities / Balance Sheet Other Loans and Advances To be considered as liability at book value (Banks & Others) per statement of Assets & Liabilities / Balance Sheet Interest Accrued and due on To be considered as liability at book value Unsecured Loans per statement of Assets & Liabilities / Balance Sheet Current Liabilities and To be considered as liability at book value Provisions: per statement of Assets & Liabilities / Balance Sheet Acceptances (NSE and Others) To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Sundry Creditors (NSE and To be considered as liability at book value Others) per statement of Assets & Liabilities / Balance Sheet Subsidiary Companies To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Advance Payments To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Unclaimed Dividends To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet
Advances
Interest Accrued but not due on To be considered as liability at book value Loans per statement of Assets & Liabilities / Balance Sheet Overdrafts with Bank To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Payments due to other stock To be considered as liability at book value exchanges per statement of Assets & Liabilities / Balance Sheet Other Liabilities (if any) To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Provision for Taxation To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Proposed Dividends To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet For Provident To be considered as liability at book value Scheme/Contingencies per statement of Assets & Liabilities / Balance Sheet For insurance, pension etc. To be considered as liability at book value schemes per statement of Assets & Liabilities / Balance Sheet Other Provisions To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Provisions : Note : Advance Payments, Investments with or debts due from persons notified under Special Cou of offences relating to transactions in securities) Act, 1992 are to be excluded for the pu computation.
Annexure : C-6 (For Corporate) Certificate dated_________ submitted by ______________________ to NSEIL
SHARE HOLDING PATTERN of _____________________ as on ______
EQUITY / PREFERENCE (Please indicate and use separate sheets for equity/preference shares) Sr No. Name $ Number shares held of Face value Amt Paid up per share (Rs. In lakh) % of total
1 2 3 4 5 6 7 8 Others TOTAL $ All initials to be expanded 100%
NOTES: 1. In case of bodies corporate holding 2% or more of the paid up capital in the trading member entity, the details of their shareholding shall also be furnished in the same format as given above 2. HUF give names of Karta and co-parceners.
3. Persons holding 2% or more of the paid up capital should be shown separately and not clubbed in Others. Date: Place:
Authorised Signatory/Director (s)
CERTIFICATE
This is to certify that the shareholding in ______________ as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.
Place: For (Name of Accounting Firm) Date: Name of Partner/Proprietor Chartered Accountant Membership Number
Annexure : C-7 (for corporate) Certificate dated_________ submitted by ____________________ to NSEIL
DETAILS OF DOMINANT GROUP as on _____
Sr No
Name of dominant shareholder
Person (s) Relation $ supportin g dominant sharehold er
No. of shares held
Total
% of Total
% of Total
Amt paid up @ @
Self Relatives 1 A A1 A2 2 B B1 B2 3 C
TOTAL
$ Please specify relation of person supporting dominant shareholder
@ : For arriving at the shareholding of persons constituting the dominant group, the shareholding of close relatives, namely parents, spouse, children and their descendants, brothers and sisters only may also be counted
provided these relatives have given an irrevocable, unconditional support in writing in the prescribed format to the Exchange.
Date: Place: Authorised Signatory/Director(s)
CERTIFICATE
This is to certify that the shareholding ______________ as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction..
Place: For (Name of Accounting Firm) Date:
Name of Partner/Proprietor
Chartered Accountant
Membership Number
IF APPLICABLE
Annexure : C-8 Certificate dated__________ submitted by_____________________to NSEIL
UNDERTAKING FROM RELATIVE OF PERSONS CONSTITUTING DOMINANT PROMOTER GROUP
I, Mr. /Ms. /Mrs. ___________, son/daughter/wife of Mr. ________________, resident of ______________________________________ am the absolute owner of ______ (no.) of shares of Rs. ___ each, Rs. _____ per share paid up, which constitutes _____ % of the total paid up capital of the company ______________________ private limited/ limited as on this date.
I state that I shall irrevocably and unconditionally support in respect of my shareholding, Mr/Ms. ________________, a shareholder in the above mentioned company. I further state that I have no objection to my above mentioned shareholding being clubbed with the shareholding of Mr. ______________________, who is my __________ (give relation s with the latter ) for the purpose of determining the dominant promoter group of the said company.
This support is irrevocable and I also undertake to give prior information to the National Stock Exchange of India Limited before selling or otherwise transferring any part or whole of my above mentioned shareholding.
WITNESS BY: Signature : Name :
SIGNATURE Name : Place :
Address : Date : Date :
CERTIFICATE
This is to certify that the Shareholding in ______________ as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction..
Place: Date:
For (Name of Accounting Firm)
Name of Partner Chartered Accountant Membership Number $ : For arriving at the shareholding of persons constituting the Dominant group, the shareholding of close relatives, namely parents, spouse, children and their descendants, brothers and sisters only may be counted provided these relatives give an irrevocable, unconditional support in writing on the prescribed format (Annexure C-8)
To be submitted by corporate Annexure : C-9 Certificate dated_________ submitted by___________________to NSEIL
Sr. No 1 2 3 4
Name of the Stock Exchange(s) on which company is listed Listed since (date)
Date: Place: Authorised Signatory/Director (s)
. Format for Non-Defaulter Undertaking
UNDERTAKING
( To be given on the letterhead of the company)
We, M/s.___________, hereby declare that we have neither been declared defaulters by any Exchange in India/ by SEBI, nor are we related or associated with any other entity/person that have been declared defaulters by any Stock Exchange in India/SEBI.
We, M/s. ___________ further declare that none of the shareholders and directors of our company have been declared as defaulters by any Stock Exchange in India/SEBI or are related or associated with any other entity/person who have been declared defaulters by any Stock Exchange in India/SEBI.
We further declare that no enquiry/investigation has been initiated/pending against M/s._______or any of the shareholders/directors by any Stock Exchange/SEBI.
(To be Stamped & Signed by authorised signatories)
Date:
UNDERTAKING WITH RESPECT TO DESIGNATED DIRECTORS
PART 1
TO WHOMSOEVER IT MAY CONCERN (To be certified by a practicing chartered accountant/ practicing company secretary)
This is with reference to the application of M/s _____________________ (Applicant Company) for seeking provisional membership of the Exchange/NSCCL and subsequent application for registration of application with SEBI in Capital Market/Wholesale Debt Market/F&O segment / Currency Derivatives Segment.
Based on the information, explanation and documents given to us, we state that the designated directors Mr./Ms. ________________ and Mr./Ms. _____________ (names of designated directors) meet the eligibility requirements as prescribed in Securities Contracts (Regulation) Rules, 1957 (Rule 8(4A) and other relevant provisions) and SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
This confirmation has been issued on the request of the applicant company for submitting to the NSEIL/NSCCL/SEBI.
For M/s Chartered Accountant Stamp and Signature Membership No.
Place Date
: :
UNDERTAKING WITH RESPECT TO DESIGNATED DIRECTORS
PART II
TO WHOMSOEVER IT MAY CONCERN
(To be stamped and signed by authorised signatories/company secretary of applicant corporate)
We, M/s______________ hereby confirm that our designated directors Mr./Ms. _________ and Mr/Ms. _____________meet the eligibility requirements as prescribed in Securities Contracts (Regulation) Rules, 1957 (Rule 8(4A) and other relevant provisions) and SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
We undertake to ensure that the above individuals or whosoever is identified by the corporate as designated directors, in future, till the time corporate is registered as a member or the Exchange will continue to meet the eligibility requirements as per Securities Contracts (Regulation) Rules, 1957 and SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
For M/s (name of applicant company)
Stamp and Signature
Place Date
: :
UNDERTAKING REGARDING ASSOCIATION / NON-ASSOCIATION
M/s ______________________________________________, hereby confirm that the designated directors is / are not associated with any of the members / sub-brokers / authorized persons of the Exchange.
OR
M/s ______________________________ hereby confirm that the following designated directors are associated with the following members / sub-brokers / authorized persons of NSEIL in the respective capacity stated below:
Sr. No
Name of Director
Capacity
Name of members / sub-brokers / authorized persons with whom associated
M/s ______________________________ further confirm that the designated directors stated above will disassociate with the above mentioned members / sub-brokers / authorized persons of the Exchange prior to our enablement. For M/s (name of company)
Stamp and Signature
CERTIFIED TRUE COPY OF CIRCULAR RESOLUTION PASSED IN BOARD MEETING DATED __________________
RESOLVED THAT: I/We (name of applicant company) is and hereby authorized for applying for membership on the National Stock Exchange of India Limited and /or National Securities Clearing Corporation Limited in the following segments (tick whichever is applicable):
o o o o o o o o o
Wholesale Debt Market Segment Capital Market Segment Futures & Options Segment Trading member Futures & Options Segment Trading and Self Clearing Member Futures & Options Segment Trading & Clearing Member Futures & Options Segment Professional Clearing Member Currency Derivatives Segment Trading Member Currency Derivatives Segment Trading and Clearing Member Currency Derivatives Segment Professional Clearing Member.
FURTHER resolved that (name with designation) and / or (name with designation) are authorized to execute individually/jointly (strike whichever is not applicable) the documents necessary for acquiring membership on behalf of the company. Their specimen signatures are as follows:
Sr. No
Names of authorized signatories
Specimen Signatures
Certified to be true.
For (name of applicant company)
(Names and signatures of authorized signatories of the applicant or designated directors or company secretary of the applicant company).
DECLARATION REGARDING ASSOCIATION / NON-ASSOCIATION WITH OTHER RECOGNIZED STOCK EXCHANGES / COMMODITY EXCHANGES
I / We / M/s (Name of applicant), hereby declare the following: (a) Are you a member of any other recognized Stock Exchange(s) or Commodity Exchange(s)?
YES
NO
(b) Incase yes, kindly provide the following details:
Sr. No
Name of Exchange
Trading segment
Authority granting registration
Registration number
Registration date
For M/s (name of company)
Stamp and Signature
Place Date
: :
FORM A
SECURITIES AND EXCHANGE BOARD OF INDIA (Stock Brokers and Sub-Brokers) Regulations 1992 (Regulation 3)
APPLICATION FORM FOR REGISTRATION AS STOCK BROKERS WITH SECURITIES AND EXCHANGE BOARD OF INDIA
1. Name of Member
:
2. Address of Member
:
3. Trade Name of Member
:
4. Form of Organisation-Sole Proprietorship Partnership, Corporate Body, Financial Institution. Pls. Give names of Proprietor/ Partner, Directors
:
5. Educational Qualifications
:
6. Date of admission to Membership
:
7. Whether member of more than one Stock Exchange? If so, please give name(s) of the Stock Exchange(s) with Code Number(s)
:
8. Indicate Fax, Telex and Phone number(s) of : office and residence
9. In the case of members admitted on any Stock Exchange after February 21, 1992 the copy of Information given to the Stock Exchange at the Time of admission
:
ANNEXURE H -2
ADDITIONAL INFORMATION TO BE SUBMITTED AT THE TIME OF REGISTRATION OF STOCK BROKER WITH SEBI
1. Name of the Stock Exchange
2.a) Name of the Applicant Member Broker
b) Exchange Clearing Code No. (If allotted by the Stock Exchange)
3. Trade Name of Member
4. Address of Member
Tel. No. (O)
Tel. No. (R)
5. Form of Organisation : Please tick the relevant entity
a) Sole Proprietorship
b) Partnership
c) Corproate Body I) Financial Institution
II) Others
III) Foreign Joint Ventures
(If an Indian Company is holding more than 25% of total equity in the joint venture, please give details of top five shareholders of Indian Company).
Name of Indian Company % Holding 1. 2. 3. 4. 5.
FIPB Approval, if applicable
6.A) Sole Proprietorship:
Name of Proprietor
Educational Qualification
Age (on the date of Experience (specify filing of application) the nature and years)
B) Partnership :
Name of Partners
Age on the Educational date of filing Qualification of application
Experience In case of (specify the Partner(s) is/are nature & years) registered with SEBI, give SEBI Reg. No.
C) Corporate Body (Financial Institution/Others) :
i) MOA Object Clause contains stock broking as one of the object in
a)
Main Object
b)
Other Object
c)
Incidental Object
(If stock broking clause appears in other object, please attach a copy of special resolution to amend the MOA to incorporate Stock Broking in main object clause)
ii)
Mention relevant Clause No.
(Please enclose copy of the relevant clause of the MOA duly certified by the Stock Exchange. If certified copy is not enclosed, application would be returned).
iii)
Information regarding directors :
Experience Whether (specify nature directors in other and years) corporate bodies engaged in capital markets (please give names and SEBI Reg. No.)
Name of directors Percentage of Educational with Designation Share holding Qualification (whether wholetime/designated/ additional
iv)
Details of top five shareholders:
Name of holders
Share Percentage of Educational Share holding Qualification
Experience Whether Share (specify nature holders in other and years) corporate bodies engaged in capital markets (please give names and SEBI Reg. No.)
7. a) Date of admission to Membership of the Stock Exchange
b) Mode of Acquiring Membership (Please attach old SEBI Regn. Certificate in all cases other than the case of new membership)
i) ii) iii) iv)
New Membership Conversion Succession Auction Purchase
(In case member has become defaulter) v) vi) Market Purchase Transfer of another company under same management (please specify reasons) vii) Others Please specify
c) Please give the following information in all the cases other than the case of new membership
i) Name of the previous holder of the card
ii) SEBI Regn. No.
iii) Date of Regn. No.
d) Whether applicant is member of more than one Stock Exchange?
YES
NO
e) If yes, please give name(s) of the stock exchange(s) with Code No. and SEBI Regn. No.
Name of Exchange(s) SEBI Regn. No.
8.a) Whether any of the Associate Companies/Partnership/Proprietorship Firm is/are having direct/indicate interest (*as defined below) in capital market
YES
NO
* The member is deemed to have direct/indirect interest in the following conditions:
i) Where he is individual, he or any of his relative being a broker/any intermediary, he or any of his relative being a partner in a broking firm/any intermediary, he or any of his relative being a director in a broking company/any intermediary or he or any of his relative clubbed together holding substantial equity in any broking company/any intermediary engaged in capital market.
ii) Where it is partnership firm/company, the relative(s) of partner(s)/director(s) in the firm(s)/corporate body being a broker/any intermediary or being partners(s)/ director(s) in any broking/intermediary engaged in capital market. iii)Relative shall mean husband, wife, brother, unmarried sister or any linear ascendant or descendant of any individual.
d) If yes, please give details (you may attach separate sheet, if required)
Name
Form Organisation
of Type of Inter- Whether Nature mediary # registered with interest SEBI (give SEBI Reg. No.)
of
# Merchant Banker, Portfolio Manager, Registrar to Issue & Share Transfer Agent, Banker to an Issue, Mutual Fund, Venture Capital, Underwriter, Debenture Trustee, FII.
9. Disciplinary Action initiated/taken against the Associate entities, as indicated in 8(b) above. (Please state details of nature of violation, action initiated/taken and by which authority)
a) Disciplinary action taken by SEBI (If yes, please attach details mentioning nature of violation and action taken)
YES
NO
b) Disciplinary action taken by any other authority (Please specify details of nature of violation and action initiated)
YES
NO
c) Disciplinary action initiated by SEBI (please attach details of nature of violation and action initiated) YES NO
d) Disciplinary action initiated by any other authority (please attach details of nature of violation and action initiated)
YES NO
10. a)
Net-worth as per the requirement of the Exchange (Rs. In Lakhs)
b) Applicant s net-worth in accordance with formula Prescribed by concerned stock exchange (Rs. in Lakhs) (Certificate from a qualified C.A. certifying the above should be enclosed)
b)
Please indicate the net-worth as per the following formula (Rs. in lakhs)
i) ii) iii)
Paid up capital Free Reserves (Exclusive of Revaluation Reserves) Less: Misc. Expenditure not written off
Total Net-worth (i+ii=iii)
I/We declare that the information given in this form is true to the best of my knowledge and belief.
Date
:
Signature Name and address of the applicant
List of Enclosures:
DD of Rs.5000/- (DD No.__________ dated_____________, drawn on 1. Registration fees ________________________Bank). 2. Copy of relevant clause of MOA duly certified by the stock exchange. 3. Certificate from the qualified Chartered Accountant certifying the networth and paid up capital 4. Undertaking by applicant that he/it had not introduced through any member broker/ sub-broker of the Exchange any fake/forged/stolen shares in the Exchange/market. If yes, details thereof including action taken, if any, by the applicant.
Certification of the Exchange
The above details have been scrutinised as per record made available to the stock exchange.
SIGNATURE NAME DESIGNATION SEAL OF STOCK EXCHANGE
: : : :
FORM AA
SECURITIES AND EXCHANGE BOARD OF INDIA (STOCK BROKERS AND SUB-BROKERS) REGULATIONS, 1992 (REGULATION 16A)
APPLICATION FORM FOR REGISTRATION AS TRADING AND/OR CLEARING MEMBER IN F&O SEGMENT
1. Name of the Derivatives Exchange/Segment/Clearing Corporation/Clearing House of which the applicant is the member. Please furnish the tenure of membership. 2. Name of the Member with Code No. 3. Whether the applicant is to act as Trading member and/or Clearing member and/or Self Clearing Member 4. If the applicant is to act as Trading member, the applicant to furnish the name and details of the Clearing member, through whom, he intend to clear and settle his trade
5. Address of the Member 6. Trade Name of Member 7. Form of Organisation: Sole proprietorship/Partnership/Corporate body/Financial institution (Please give names of proprietor/partners/directors). 8. Please furnish a copy of Memorandum and Articles of Association or the Partnership Deed, as the case may be. 9. Educational Qualifications of proprietor/partners/directors, etc. 10. Whether the applicant or its sales personnel or approved user has passed any certification programme? If so, please specify the detail.
11. The experience of the applicant or their two directors or partners in derivatives trading or securities market, if so, please give details. 12. Date of admission to membership to the derivatives exchange or derivatives segment/Clearing Corporation/Clearing House. 13. Whether member of more than one exchange or derivatives segment or clearing corporation or clearing house of any segment? If so, please give name(s) of the Clearing Corporation/clearing house, or any stock exchange(s) with code number(s)? 14. Networth of the applicant. Please furnish details along with necessary documents in support thereof. 15. Whether the applicant or its director or partners, any time convicted of any economic offence? If so, please furnish the details? 16. Whether the applicant or its directors or partners, declared insolvent/bankrupt or declared defaulter by any exchange? If so, please furnish details? 17. Whether the applicant or its directors or partners anytime subjected to any proceedings or penalty by the Board under SEBI Act or any of the regulations framed under the SEBI Act? If so, please furnish the details. 18. Indicate fax, telex and phone number(s). 19. Whether the application is accompanied by a requisite fee as per Schedule IV of the Regulations as applicable to the applicant.
FORM AB APPLICATION FORM FOR REGISTRATION AS TRADING AND/OR CLEARING MEMBER IN CURRENCY DERIVATIVES SEGMENT
1. Name of the Currency Derivatives Exchange/Segment/Clearing Corporation/Clearing House of which the applicant is the member. Please furnish the tenure of membership.
2. Name of the Member with Code No.
3. Whether the applicant is to act as Trading member and/or Clearing member and/or Self Clearing Member
4. If the applicant is to act as Trading member, the applicant to furnish the name and details of the Clearing member, through whom, he intend to clear and settle his trade
5. Address of the Member 6. Trade Name of Member
7. Form of Organisation: Sole proprietorship/Partnership/Corporate body/Financial institution (Please give names of proprietor/partners/directors).
8. Please furnish a copy of Memorandum and Articles of Association or the Partnership Deed, as the case may be.
9. Educational Qualifications of proprietor/partners/directors, etc.
10. Whether the applicant or its sales personnel or approved user has passed any certification programme? If so, please specify the detail.
11. The experience of the applicant or their two directors or partners in Currency derivatives trading or securities market, if so, please give details. 12. Date of admission to membership to the Currency derivatives exchange or Currency derivatives segment/Clearing Corporation/Clearing House.
12. Whether member of more than one exchange or currency derivatives segment or clearing corporation or clearing house of any segment? If so, please give name(s) of the Clearing Corporation/clearing house, or any stock exchange(s) with code number(s)?
14. Networth of the applicant. Please furnish details along with necessary documents in support thereof.
15. Whether the applicant or its director or partners, any time convicted of any economic offence? If so, please furnish the details?
16. Whether the applicant or its directors or partners, declared insolvent/bankrupt or declared defaulter by any exchange? If so, please furnish details.
17. Whether the applicant or its directors or partners anytime subjected to any proceedings or penalty by the Board under SEBI Act or any of the regulations framed under the SEBI Act? If so, please furnish the details.
18. Indicate fax, telex and phone number(s). 19. Whether the application is accompanied by a requisite fee as per Schedule IV A of the Regulations as applicable to the applicant. I declare that the information given in this form is true and in the event of any information furnished is false, misleading or suppression of facts, my certificate of registration is liable to be cancelled by SEBI without assigning any reasons whatsoever
Recommendation of the Currency derivatives exchange/Currency derivatives segment, clearing corporation/House
This is to certify that _________________________________________________ is a member of this Currency Derivatives Exchange/Currency Derivatives Segment or Clearing Corporation or Clearing House and is recommended for registration with the Securities and Exchange Board of India.
Signature
:
Name
:
Designation :
Undertaking for Fit and Proper person
UNDERTAKING
(To be given on the letterhead of the company)
I / We, M/s ____________ (name of the applicant) hereby declare that I/we am/are fit and proper person as per SEBI (Criteria for Fit and Person) Regulations, 2004 and SEBI (Stock Brokers & Subbrokers) Regulations, 1992. We confirm the following in this regard: (a) the applicant or the intermediary, as the case may be or its whole time director or managing partner has not been convicted by a Court for any offence involving moral turpitude, economic offence, securities laws or fraud; (b) no order for winding up has been passed against the applicant or the intermediary; (c) the applicant or the intermediary, or its whole time director, or managing partner has not been declared insolvent and has been discharged;
(d) no order, other than an order of suspension of certificate of registration as an intermediary, restraining, prohibiting or debarring the applicant or the intermediary, or its whole time director or managing partner from dealing in securities in the capital market or from accessing the capital market has been passed by the Board or any other regulatory authority wherein a period of three years from the date of the expiry of the period specified in the order has not elapsed;
(e) no order canceling the certificate of registration of the applicant or the intermediary has been passed by the Board on the ground of its indulging in insider trading, fraudulent and unfair trade practices or market manipulation wherein a period of three years from the date of the order has not elapsed; (f) no order withdrawing or refusing to grant any license / approval to the applicant or the intermediary, or its whole time director or managing partner which has a bearing on the capital market, has been passed by the Board or any other regulatory authority wherein a period of three years from the date of the order has not elapsed; (g) the applicant or the intermediary, is financially sound;
(h) there is no other reason, recorded in writing by the Board, which in the opinion of the Board, renders such applicant or the intermediary, or its whole time director or managing partner unfit to operate in the capital market.
For ______ (Name of Applicant Member)
For _______ (Name of Applicant Member)
Name of the Designated Director
Name of the Designated Director
Note:
1. Undertaking to be stamped & signed by the proprietor or two designated directors/partners as applicable. 2. In case the applicant wishes to furnish any details pertaining to the above mentioned confirmations, the same can be provided as annexure (duly stamped and signed by the authorised signatories) to the undertaking.
Date: Place:
Applicable for corporates
TO, NSEIL/NSCCL, Exchange Plaza Bandra Kurla Complex Bandra (E) Mumbai 400051
Date:
Dear Sir,
Sub: Application for New membership.
I / We / M/s ______________________________________________, hereby confirm that the following:-
a) No disciplinary action was taken against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by SEBI. b) No disciplinary action was taken against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by any other authority. c) No disciplinary action was initiated against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by SEBI. d) No disciplinary action was initiated against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by any other authority. e) None of the Director(s) / Designated Director(s) of the company was/were debarred and/or no action was initiated against them by the SEBI from associating from the capital market and the company/firm undertakes that it will not appoint any such person/s, in future as director(s)/designated director(s) of the company. f) Necessary infrastructure like adequate office space, equipments and man power to effectively discharge his activities is available with us. g) As long as the company is engaged in stock broking as a member of any recognized Stock Exchange in India, it will engage itself in only such business as a member of a recognized Stock Exchange is permitted to engage in under the securities and contracts (Regulation) Rules, 1957, and the Rules, Bye-laws & regulations of the Stock Exchange. Further, we are aware and acknowledge that if we engage in any other business the Exchange will be entitled to take disciplinary action (including fine, suspension &/or expulsion) against us.
CHECKLIST WHILE SUBMITTING APPLICATION No. 1. Particulars Application form Points to be checked Dated, Stamped and Signed by the authorised signatories (as appointed in Board Resolution) on each page In favour of National Stock Exchange of India Limited, payable at Mumbai, amounting to Rs. 11,030/(Processing fee of Rs. 10,000 plus 10.30% service tax) and 1. Certificate (Annexure C1) along with computation statement to be submitted. 2. Computation should be as per (a) NSE Circular No. 93 (Ref.No.: NSE/MEM/475) dated March 4, 1998 for Capital Market/F&O Trading/WDM Refer (Annexure C-1B) (b) Refer Annexure C-1A Self Clearing/Clearing / Professional Clearing in F&O segment and Trading / Clearing / Professional Clearing in Currency Derivatives Segment. Kindly submit three original sets* If applicable please attach the latest status report from the relevant exchange 1. Identify at least 2 designated directors who are graduate by qualification and have at least 2 years of experience in securities market. 2. Attach self attested bio-data, experience certificate issued by SEBI registered intermediary and bearing the SEBI registration no. of the entity and cross certified copies of proof of age, educational qualification for all directors Kindly submit three sets of Annexure, Bio data, Age and Education proof and Experience Certificate.* F&O Certification Course should be valid at the time of application Should have atleast 750 sq ft area.
2.
Demand draft/Pay order/Cheque
3.
C-1 Certificate of netwoth
4.
C-2 Details of Other Stock Exchange Membership C-3 Details of Directors
5.
6.
C-4 Details of Core Dealers
7.
C-5 Details of infrastructure
Should be accompanied by documentary reference. 8. C-6 Details of shareholding/sharing pattern Paid up capital should be 30 lakhs in case of corporate applicant. Kindly submit three original copies.* Ensure that dominant promoters norms of the Exchange are being met. Giving details viz., account no., Type of account and date of opening the accounts Kindly submit three original copies.* 1. Audited Balance Sheet and P & L A/c 2. MOA/AOA - Kindly submit three original copies.* 3. Copy of valid certificate of any one of designated director / compliance officer related to at least one of the following NCFM Modules : (a) Securities Market (Basic) Module (b) Compliance Officer (Broker) Module (c) Capital Market (Dealers) Module (d) Derivatives Market (Dealers) Module 4. Designated Directors Undertaking Kindly submit three original copies.* 5. Non-Defaulter Undertaking - Kindly submit three original copies.* 6. Undertaking for fit and proper person. In case applying for Trading cum clearing membership and for only clearing membership in the Currency Derivatives Segment 1. To be on plain paper 2. Details for all points to be provided 3. Each page to be signed by the authorised signatories along with the rubber stamp 4. Exchange recommendation and member certification to be on same page 1. To be on plain paper 2. Details for all points to be provided 3. Each page to be signed by the authorised signatories along with the rubber stamp 4. Exchange recommendation and member certification to be on same page 5. 2 copies to be provided in case opting for clearing membership.
9.
C-7 Details of dominant promoter
10.
Bankers reference letter
11. 12.
Board Resolution Enclosures in addition to above
13.
DD of Rs. 50000/- favouring SEBI
14.
Form A and Form H2
15.
Form AA (F&O Segment) / Form AB (Currency Derivatives Segment)
16.
Declaration for non-introduction of fake and forged shares
17.
2 NCFM / equivalent test Certificates for F&O segment 2 NISM certificates for Currency Derivatives segments DD of Rs. 50,000/- in favour of SEBI payable at Mumbai
1. To be on letterhead 2. 2 copies required if opting for membership of F&O segment as well as Currency Derivatives segment 1. Certificate to be valid. 2. Certified true copy to be submitted 1. Certificate to be valid. 2. Certified true copy to be submitted 1. Required incase opting for Clearing membership of Currency Derivatives Segment
18.
19.
doc_582470463.docx
subsidiary of J&K Bank Ltd.(a Govt. Company). It is the wholly owned subsidiary of Jammu and Kashmir Bank Ltd which and was incorporated on 26-08-2007. The JKB Financial services Ltd is authorized to carry on business of stock broking in India and elsewhere and to act as agents, dealers, brokers and sub-brokers and to become a member of any recognised stock exchange, trade association, clearing house NSDL/CDSL etc for which the company has got prior approval of RBI.
NEED TO ESTABLISH JKB FINANCIAL SERVICES
JKB Financial Services Company was established by JK Bank Ltd. as a part of its diversification process into para banking activities. The ever growing demand for the para banking activities in the state has provided gateway rather necessitated the need to establish the financial services centres in the state. After establishing JKB Financial services in the state, it would be able to provide a wide variety of services on its own like mutual fund distribution, insurance distribution, broking services etc. all these services were conducted by JKB bank but through a fee based consultancy like HSBC. By establishing its own services business, it will be able to cater to the demand of most of the desiring investors. Financial inclusion scheme has necessitated the need to include most of the population under organized financial system so that it brings about an overall development in the financial structure of the country. A largely imbalanced structure of the financial system in india has done a lot in disturbing the development of the country. A well developed financial system paves way for a more equitable and growing economy. JKB Financial services aim the same so as to aware people about the various financial solutions and makes people educated in terms of financial know-how. In order to smoothly conduct the services relating to broking, trading etc, financial services companies need to register themselves with the exchanges they are going to trade with. It provides a sort of regulatory compliance to the companies as they work under a specified framework. Procedure to register with NSE and BSE so as to act as their intermediary to carry on trading services is provided below with the necessary required documents as sample.
Procedure to file Membership Application to act as intermediary to Bombay stock exchange (BSE)
JKB Financial Services Co. Ltd. proposes to obtain membership of NSE/BSE Ltd. The company also proposes to act as depository participant of NSDL/CDSL respectively. Various procedures involved in the registration of the JKB Financial Services to act as a deposit based member would be covered in the subsequent editions. This procedure is related to the Bombay Stock Exchange Ltd. Various guidelines are issued by BSE from time to time so as to detail about the procedure and statutory requirement for the companies to act as intermediary to BSE. Various formats are also published by the BSE in the form of a brochure to assist the companies pursuing to become the members of the depository and to avail the services of the stock exchange. JKB Financial services applied for the registration to act as an intermediary for BSE. The various documents needed to be submitted by the Institution include: All the documents mentioned in the checklist The exchange however directs the institutions to take care of some specific things for which undertakings and other statutory documents have to be submitted. Which are enclosed therein.
What is Deposit Based Membership?
BSE provides deposit based membership to its clients. Under this process any institution who wants have registration with the exchange needs to deposit a specified amount with the exchange which is refunded only at the time of exit by the company.
Eligibility and Qualifications of becoming a member of BSE Ltd.
Who are eligible to become a member?
Applications can be made by individuals and corporate, who are eligible to become a member of BSE Ltd., in accordance with the Rules, Bye-Laws & Regulations of the BSE Ltd., and subject to
such terms and conditions as decided by BSE Ltd., from time to time. The minimum net worth requirement: y Cash Segment: Rs.30 lakhs y Derivatives Segment amount as prescribed for different category of membership by the Exchange and as per L. C. Gupta format y The Minimum Capital requirement is Rs.30 lakhs. y BSE Ltd., reserves the right to reject any application without assigning any reason whatsoever. y The decision of BSE Ltd., will be final and binding in all respects. The various clauses are put forward by the BSE so as to make the institutions adhere to rules and regulations and to ensure that only the eligible parties become a part of it.
Terms and Conditions to become a deposit based member
The application form in the prescribed format, complete in all respects should be accompanied by a Demand Draft/Pay Order for Rs.1 lakh drawn in favor of "BSE Limited" towards earnest money deposit which will not bear any interest. However the amount is refunded to unsuccessful candidates. The Amount of Rs. 10,000 is deducted by the exchange as processing fee. After the submission of the details of the application formats are sent by the BSE to the SEBI for Approval, the offer for the completion of the proceedings by the successful candidate is made by the BSE. The successful applicants, whose offers are accepted by BSE Ltd., will be required to pay the balance amount of the deposit at the time of commencement of business. The interest free deposit of the Trading Members will not have any Lock-in period. However, any trading member who wants refund of Interest Free Deposit of Rs.10 lakhs shall be first required to apply for surrender of trading membership right. Before applying for surrender of trading membership right, such member shall ensure voluntary closure of business. The voluntary closure should be at least for a period of 6 months prior to the date of surrender. Where the trading terminals of the member have remained deactivated for a period of 6 months prior to the date of surrender it shall be construed as closure of business. On receipt of application for surrender, the Exchange will give Public Notice in newspaper to enable the investors /public to lodge claims, if any, against surrendering
trading member, giving a period of 3(three months) from the date of Public Notice. However, this condition would not apply to the members who have not commenced business or have not activated their trading terminals at all. Further, the amount of Interest Free Deposit will be refunded only after recovering outstanding amount if any by BSE Ltd., and after getting NOC from SEBI. In addition to the aforesaid amount of Rs.10 Lakhs (Interest free deposit) the member has to pay the following amounts at the time of commencement of business : 1) Base Minimum Capital (Refundable) Rs.8.75 lakhs Cash/Cash equivalent). 2) Trade Guarantee Guarantee/FDR) Fund Rs.10, 00,000/- (Rs.1.25 lakhs in cash +
(Refundable)
Rs.10,00,000/-
(Cash/Bank
3) Admission Fees (Non refundable) 4) Rs.5, 000/- (Add: Service Tax as applicable): if the applicant applies in all segments. 5) Rs.2, 50,000/- (Add: Service as applicable): if the applicant applies only in the cash segment. 6) Annual Subscription applicable) (Non refundable) - Rs.25,000/- (Add : Service Tax as
7) Initial Contribution towards Trade Guarantee Fund (Non refundable) Rs.10,000/- (Add : Service Tax as applicable) -And other amount as required by BSE Ltd.
Documents to be submitted by the concerned institution with the exchange so as to complete the process of registration. The company provides a checklist of the documents to be submitted to the exchange and annexures are to be enclosed with the relevant documents.
A Checklist of the documents to be enclosed with the application format are given below.
Check List for TRADING MEMBERSHIP
Sr. No
Documents to be given
Documents submitted
Remarks
1. 2. 3. 4. 5. 6. 7. 8.
Appendix A II Auditors Certificate Annexure - II (Details of the Company) Memorandum and Articles of Association Prospectus of statement in lieu of prospectus Short History of the company and its activities on letter head of company signed by directors. Capital Structure *(Authorised capital, Issued capital and subscribed capital (On the members letter head) Shareholding Pattern in respect of each shares. (Sr. No. | Name of the shareholder | Percentage of Holding and Amount Holding) *(In case a member has a corporate entity as its shareholders then the shareholding pattern of that corporate entity would required to be submitted till the last individual shareholder is identified) Board resolution authorising the directors to apply for membership. Net worth Certificate (certified by C.A.) & statement of calculation as per the annexure attached. * Balance Sheet (Including All schedules) in concurrent to the Net worth statement submitted. * NOC / Status report from the Stock Exchange (s) where an applicant company is a member (s). Details of all the Directors of the applicant company on letter head signed by directors. (Form C 3) Certified PAN Card copy Details of Infrastructure SEBI UNDERTAKINNG IN RESPECT OF INFRASTRUCTURE
9. 10. 11. 12. 13.
14. 15. 16.
A certificate to be submitted on the letterhead of the applicant as per following format: This is to certify that as per SEBI (Stock Brokers and Sub Brokers ) Regulations, 1992 Chapter II Rule 5 (b) has the necessary infrastructure like adequate office space, equipments and man power to effectively discharge the broking activities. Signature (Designated Director) with Rubber Stamp Place : Date : 1. Documents to be submitted for Derivative Segment Networth Certificate & Computation of Networth as per L C Gupta Format (Minimum Networth Requirement : TM 25 Lacs, TCM - 3 crores, SCM -1 crore) to mention the following on the top of networth certificate. 'Networth certificate as per Regulation 16 (C) of SEBI stock Broker and Sub Brokers.' Details of the Compliance Officer 2 Point Undertaking Certified copy of Passed Certification Programme for atleast two approved users. Consent Letter from Associate Clearing Member (in case of Trading Members only)
2. 3. 4.
5.
Documents To Be submitted by each of the designated Directors
Documents to be submitted by each Designated Directors Name of the Designated Director Documents to be given Sr. No. 1. 2. 3. Annexure I Board Resolution Authorising appointment of designated director A brief Bio Data of the Designated Director (self signed on plain paper / on letter head of individual director) Certificates of educational Qualifications( CA Certificates relating to the Experience in the Capital market If the Designated Director is a member of any other Stock Exchange in his individual capacity then the Designated Director has to submit NOC/Status report of that particular Exchange also. If an associate concern/entity is a member of any other stock Exchange then the NOC / Status report of that particular exchange is also to be submitted Documents submitted Remarks
4. 5. 6.
7. 8.
Copy of PAN Card. A certificate to be submitted on the letterhead of C.A. as per following format: This is to certify that of possesses a minimum of 2 years capital market experience as required under the provisions contained in Rule 8 sub-rule 4A sub-clause (v) of Securities Contract (Regulation) Rules, 1957.
9.
Signature. Copy of Form No. 29 and 32 filed with ROC.
10. Certificate of BCFM/NCFM Exam conducted by BSE/NSE
1. Infrastructure Details and Undertaking.
a) Office Premises b) Computers c) Telephone/Telex/Fax d) Employees e) Affiliates and Associates f) including foreign collaborations
g) Any other aspect considered relevant
CHECKLIST FOR OBTAINING MEMBERSHIP FOR EQUITY DERIVATIVES (along with the Membership of Cash Segment of the Exchange) 1. 2 Point Undertaking 2. SEBI Registration Form for FORM AA 3. Certified copy of Passed Certification Programme for atleast two approved users. 4. Consent Letter from Associate Clearing Member (in case of Trading Members only)
Undertaking to be given on the letterhead signed by designated director
There are no enquiry/adjudication/action/prosecution is/was pending/completed against or any of its directors/partners/proprietor, (and if yes details thereto). has never been declared defaulter or is associated with any person/entity/ broker who has been declared defaulter by any stock exchange in India
There are no enquiry/investigation has been initiated/ pending against by any stock exchange in India.
1.
Age proof (copy of PAN card) and copy of educational qualifications Minimum Age : 21 Years completed as on date of Application.
2.
Certificates of experience
3.
Your bio-data giving name, educational qualification, date of birth, age as on date of application and complete details of experience in capital market.
4.
Networth Certificate alongwith concurrent Balance Sheet as on as on such date not older than 3 months preceding the date of application (duly certified by C. A.) Statement of investment (quoted & un-quoted) at cost & market price as on such date for which latest documents are submitted as mentioned in point No. 4 above (Duly certified by C.A). List of Receivables/debtors which are due and outstanding for more than six months (Duly certified by C.A.)
5.
6.
7.
Status Report from the Stock Exchange of which you are a member.
8. 9.
Certificate of BCFM/NCFM Examination conducted by BSE Ltd./NSE All SEBI undertaking mentioned in Page 7 of the Basic Guidelines and Application Form.
10. SEBI Form A & AA mentioned in Page 29-41 of the Basic Guidelines and Application Form 11. Such other documents as may be called for and be required by the Exchange.
Individuals
In case any individual wants to register with the exchange to carry on broking services with the exchange, various set of questions are provided by the exchange for the registration process. Questionnaire to be submitted is given as:
QUESTIONNAIRE (To be answered by Individual candidates applying for membership)
What is your name? What is your father s name? What is your surname? What is your date of birth? Are you a citizen of India? Have your been adjudged bankrupt or has a receiving order in bankruptsy been made against you or have you been proved to be insolvent at any time? 7. Have you at any time compounded with your creditors? 8. If so, how many annas in the rupee have you paid to your creditors? 9. Have you been at any time convicted of an offence involving fraud or dishonesty? 10. Are you associated with or a member of or a subscriber to or shareholder or debenture holder in or connected through a partner or employee with any organization, institution, association, company or corporation in India where dealings in securities are carried on? If so please give full particulars. 11. Are you aware that on election to membership of the exchange you will have to sever forthwith all such association or connection? 12. Are you a director, partner or employee of any company whose principal business is that of dealings in securities? If so, please give full particulars. 13. Are you aware that on election to membership of the exchange you will have to sever forthwith your connection as such director, partner or employee? 14. Are you associated with or a member of or a subscriber to or a shareholder or debenture holder in or connected through a partner or employee with any other exchange or commercial organization? If so, please give full particulars.
1. 2. 3. 4. 5. 6.
15. Are you aware that on election to membership of the exchange you will have to sever forthwith all such association or connection? 16. Have you been at any time rejected by or expelled from or declared a defaulter on any stock exchange? If so, please give full particulars. 17. Have you been at any time rejected by or expelled from or declared a defaulter on any other stock exchange or commercial organization? If so please give full particulars. 18. Are you engaged as principal or employee in any business other than that of securities? If so please give full particulars. 19. Are you aware that on election to membership of the exchange you will have to cease forthwith to be so engaged. 20. Do you do business in shares on your own account ? 21. Do you have any constituent? 22. Do you, for the most part or exclusively, do business on your own account or on behalf of constituents? 23. Have you over had or have you now any forward transactions in shares or other commodities? 24. If so, please state with through or whom. 25. Have you any liabilities which are overdue? 26. With whose money are you applying for membership of the exchange. 27. Do you pay income-tax? If so, since when? 28. If admitted to the membership of exchange, will you carry on business in the market? 29. Do you propose to carry on business on the exchange in your own name? 30. Is the signature on the application yours? 31. Have you read the Rules, Bye-laws and Regulations of the exchange? 32. Are you aware that any misstatement or misrepresentation or suppression of facts in connection with application for membership or breach of any undertaking or condition of admission to membership entails expulsion and forfeiture of membership?
Membership Application to act as intermediary for NSE
National Stock Exchange membership has almost the same criteria as that of the BSE albeit certain changes. The following is the classification according to NSE in respect of various clearing members. Members are admitted in the following categories:
y
Only Capital Market ± This category of membership entitles a member to execute
trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment.
y
Capital Market and Futures & Options Trading A membership in this
category entitles a member to o execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and o Execute trades on his own account as well as on account of his clients in the Futures & Options segment, but, clearing and settlement of trades executed through the Trading Member would have to be done through a Trading-cum Clearing Member or Professional Clearing Member of the Exchange.
Capital Market and Futures & Options Trading & Self Clearing ±
A membership in this category entitles a member to
o o o
execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and execute trades on his own account as well as on account of his clients and to clear and settle trades executed only on his own account as well as on account of his clients in Futures & Options segment.
o o
Capital Market and Futures & Options Trading and Clearing ± A
membership in this category entitles a member to Execute trades and to clear and settle the trades executed on his own account as well as on account of his clients in the Capital Market Segment and o Execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member in Futures & Options segment.
y
Only WDM A membership in this category acquires a right to execute trades and to clear and settle the trades executed by the members in the WDM Segment. This membership can be also taken in combination with any of the 4 categories as stated above.
y
Professional Clearing Members ± A membership in this category entitles a member to clear and settle trades of such members of the Exchange who choose to clear and settle their trades through this member.
The different categories of membership in the Currency Derivatives segment is as follows:
y
Only trading membership in Currency Derivatives
A membership in this category entitles a member to execute trades on his own account as well as on account of his clients in the Currency Derivatives segment, but, clearing and settlement of trades executed through the Trading Member would have to be done through a Trading-cum Clearing Member or Professional Clearing Member of the Exchange.
y
Trading and Clearing membership in Currency Derivatives - A
membership in this category entitles a member to execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member in Currency Derivatives Segment.
y
Professional Clearing Members ± A membership in this category entitles a
member to clear and settle trades of such members of the Exchange who choose to clear and settle their trades through this member.
Eligibility Criteria
The exchange has set a criteria so as to select which entities are eligible to act as intermediary to the exchange. The criteria as per NSE is provided below: The following are eligible to apply for membership subject to the regulatory norms and provisions of SEBI and as provided in the Rules, Regulations, Byelaws and Circulars of the Exchange published from time to time.
y y y
Individuals Partnership Firms registered under the Indian Partnership Act, 1932; Corporations, Companies or Institutions or subsidiaries of such Corporations, Companies or Institutions set up for providing financial services.
y
Banks for Currency Derivative Segments Such other person as may be permitted under the Securities Contracts (Regulation) Rules 1957.
Other Eligibility Criteria
1. Individuals (Sole Proprietor)
CRITERIA Age Status Education Experience Minimum age : 21 years Indian Citizen At least HSC or equivalent qualification Applicant should have an experience for not less than two years as a partner with, or an authorised assistant or authorised clerk or remisier or apprentice to, a member.
2. Partnership Firms
Where the applicant is a partnership firm, the applicant shall identify a Dominant Promoter Group as per the norms of the Exchange at the time of making the application. Any change in the shareholding of the partnership firm including that of the said Dominant Promoter Group or their sharing interest shall be effected only with the prior permission of NSEIL/SEBI.
CRITERIA Age Status Education Designated Minimum age of partner(s) : 21 years Registered Partnership firm under Indian Partnership Act, 1932 Partners should be at least HSC or equivalent qualification Identify at least two partners as designated partners who would be taking
Partners Designated Partners Experience
care of the day to day management of the partnership firm Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial services or treasury, broker, sub broker, authorised agent or authorised clerk or authorised representative or remisier or apprentice to a member of a recognised stock exchange, dealer, jobber, market maker, or in any other manner in dealing in securities or clearing and settlement thereof. Identify partner¶s sharing interest as per Exchange DPG norms
Dominant Promoter Norms
3. Corporations, Companies or Institutions
A Company as defined in the Companies Act, 1956 (1 of 1956), shall be eligible to be admitted as a member of a Stock Exchange provided:
1. such company is formed in compliance with the provisions of Section 12 of the said Act 2. it undertakes to comply with such other 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) 3. the directors of such company are not disqualified for being members of a stock exchange under clause (1) of rule 8 [except sub-clauses (b) and (f) thereof] or clause (3) of rule 8 [except sub-clauses (a) and (f) thereof] of the Securities Contracts (Regulation) Rules, 1957 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
CRITERIA Age Status Minimum age of director(s) : 21 years Corporate registered under The Companies Act, 1956 (Indian)
Minimum Paid Rs.30 lakhs up Equity Capital
Designated Directors Education Designated Directors Experience
Identification of at least two directors as designated directors who would be managing the day to day trading operations Each of the Designated Directors should be at least HSC or equivalent qualification Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial services or treasury, broker, sub broker, authorised agent or authorised clerk or authorised representative or remisier or apprentice to a member of a recognised stock exchange, dealer, jobber, market maker, or in any other manner in dealing in securities or clearing and settlement thereof. Identify dominant group as per Exchange DPG norms
Dominant Promoter Norms
4. Professional Clearing Member (PCM)
The following persons are eligible to become PCMs of NSCCL for Futures & Options and/or Capital Market Segment provided they fulfill the prescribed criteria: 1. SEBI Registered Custodians; or 2. Banks recognised by NSEIL/NSCCL for issuance of bank guarantees
5. Banks
Further to Circular No: 648 with Download No: NSE/MEMB/11148 dated August 19, 2008, the eligibility membership criteria for banks in the Currency Derivatives segment is as follows: Banks authorized by the Reserve Bank of India under section 10 of the Foreign Exchange Management Act, 1999 as AD Category - I bank are permitted to become trading and clearing members of the currency futures market of the recognized stock exchanges, on their own account and on behalf of their clients, subject to fulfilling the following minimum prudential requirements:
Minimum net worth of Rs. 500 crores. Minimum CRAR of 10 per cent. Net NPA should not exceed 3 per cent. Made net profit for last 3 years.
The AD Category - I banks which fulfill the prudential requirements are required to lay down detailed guidelines with the approval of their Boards for trading and clearing of currency futures contracts and management of risks. AD Category - I banks which do not meet the above minimum prudential requirements and AD Category - I banks which are Urban Co-operative banks or State Co-operative banks can participate in the currency futures market only as clients, subject to approval therefore from the respective regulatory Departments of the Reserve Bank. The requirement of approved users of being certified as per the certification as applicable in the F&O segment is waived off for banks for a period of one year from the date of the issuance of SEBI circular SEBI/DNPD/Cir- 38 /2008 dated August 06, 2008.
6. Other applicable eligibility criteria
1. At any point of time the applicant has to ensure that either the proprietor/one designated director/partner or the Compliance Officer of the applicant entity should be successfully certified either in Securities Market (Basic) Module or Compliance Officers (Brokers) Module or the relevant module pertaining to the segments wherein membership of the Exchange has been sought.i.e. i. ii. iii. Capital Market (Dealers) Module Derivatives Market (Dealers) Module National Institute of Securities Markets (NISM) Series I Currency Derivatives Certification Examination
The above norm would be a continued admittance norm for membership of the Exchange.
1. An applicant must be in a position to pay the membership and other fees, deposits etc, as applicable at the time of admission within three months of
intimation to him of admission as a Trading Member or as per the time schedule specified by the Exchange.
2. The Exchange may specify such standards for investor service and infrastructure with regard to any category of applicants as it may deem necessary, from time to time.
Who cannot become a member?
Further to the capital and network requirements, No entity shall be admitted as a member/partner or director of the member if
. It has been adjudged bankrupt or a receiver order in bankruptcy has been made
against him or he has been proved to be insolvent even though he has obtained his final discharge
a. it has compounded with his creditors for less than full discharge of debts b. it has been convicted of an offence involving a fraud or dishonesty c. it is engaged as a principal or employee in any business other than that of
Securities, except as a broker or agent not involving any personal financial liability or for providing merchant banking, underwriting or corporate or investment advisory services, unless he undertakes to severe its connections with such business on admission, if admitted
d. it has been at any time expelled or declared a defaulter by any other Stock
Exchange or he has been debarred from trading in securities by an Regulatory Authorities like SEBI, RBI etc e. it incurs such disqualification under the provisions of the Securities Contract (Regulations) Act, 1956 or Rules made there-under so as to disentitle such persons from seeking membership of a stock exchange f. it incurs such disqualification consequent to which NSE determines it to be not in public interest to admit him as a member on the Exchange, provided that in case of registered firms, body corporates and companies, the condition from (will apply to, all partners in case of partnership firms, all directors in case of
companies; NSE may from time to time modify / expand the scope of activities that could be considered as relevant experience for the above purpose.
Deposit & Net worth Requirements (Corporates)
DEPOSIT STRUCTURE (Rs. IN LAKHS) Segment Capital Market Wholesale Debt Market Type of Membership TM & SCM TM & SCM Cash- Non-Cash Cash Non-Cash NSEIL NSEIL NSCCL NSCCL 85 150 15 25 Total 125 150 Net Worth 100 200
TM Futures & Options TM & SCM TM & CM PCM
25 25 25 -
-
25 25 25
25 25 25
25 75 75 50
100 100 300 300
TM Existing Members TM & CM TM Currency Derivatives Segment NCDEX Members TM & CM TM Other Members PCM TM & CM
2 2 2 2 2 2 -
8 8 10.5 13 13 18 -
25 25 25 25
25 25 25 25
10 60 12.5 65 15 70 50
100 1000 100 1000 100 1000 1000
* TM = Trading Membership. * TM & SCM = Trading and Self Clearing Membership. * TM & CM = Trading and Clearing Membership. * PCM = Professional Clearing Membership.
Deposit & Net worth Requirements(Individual / Partnership Firms) DEPOSIT STRUCTURE (Rs. IN LAKHS) Segment Capital Market Wholesale Debt Market Futures & Options Type of Membership TM & SCM TM & SCM TM TM & SCM TM & CM Cash- Non-Cash Cash Non-Cash NSEIL NSEIL NSCCL NSCCL 26.5 150 25 25 25 6 25 25 17.5 25 25 Total 50 150 25 75 75 Net Worth 75 200 75 100 300
TM Existing Members Currency Derivatives Segment TM & CM TM NCDEX Members TM & CM TM Other Members TM & CM
2 2 2 2 2 2
8 8 10.5 13 13 18
25 25 25
25 25 25
10 60 12.5 65 15 70
100 1000 100 1000 100 1000
* TM = Trading Membership.
* TM & SCM = Trading and Self Clearing Membership. * TM & CM = Trading and Clearing Membership. * PCM = Professional Clearing Membership.
Unlike the BSE, the membership in the NSE is not deposit based rather it is fee based. Thus the entities eligible to act as members to the exchange need to deposit fee to cover for the charges made by the exchange. Various details regarding the fee to be submitted are given below:
Fees and Charges :
y
Application Processing Fees: Rs. 10,000/- Plus applicable Service Tax.
y y
Admission Fees : Rs. 5,00,000/- Plus applicable Service Tax Annual subscription charges (Capital Market Segment): o For Corporate - Rs. 1,00,000 P.A. o For Individuals/Partnership Firms - Rs. 50,000 P.A. Advance minimum transaction charges (Futures & Options segment): P.A.
y
Rs. 1, 00,000
Pictorial Representation of the procedure to act as intermediary
Proforma of the documents to be attached with the application to be submitted with the exchange are provided as enclosement with this document
Membership Application
(On the letterhead of the applicant member) To be signed by at least two directors in case of corporate
Date: _______________
y y y y y y y
To, The Managing Director, National Stock Exchange/National Securities Clearing Corporation Exchange Plaza Bandra-Kurla Complex Bandra (E) Mumbai 400 050
Subject: Application for Membership
Dear Sir, I/ We am/are desirous to become the Member of the National Stock Exchange of India Ltd and/or National Securities Clearing Corporation Ltd. I/We hereby apply for the said membership, and undertake to conform to and to abide by the Memorandum & Articles of Association and the Rules, Bye-Laws, Regulations, Business-Rules, Circular, Notifications and office orders, issued by the Exchange/Clearing Corporation from time to time. I/We shall be liable for all contracts and transactions in the exchange entered by us or by our authorized representatives and I/We shall comply with all requirements of the Exchange relating to settlement thereof. I/we shall also abide by all decisions of the Exchange/Clearing Corporation with respect to the operation of the Exchange/Clearing Corporation and would perform accordingly in meeting my/our financial, regulatory and operational responsibility as decided of the Exchange/Clearing Corporation from time to time.
APPLICATION FORM FOR MEMBERSHIP OF NATIONAL STOCK EXCHANGE LTD/NATIONAL SECURITIES CLEARING CORPORATION LTD
Please tick the requisite segment and type of membership:
CAPITAL MARKET SEGMENT WHOLESALE DEBT MARKET SEGMENT
FUTURES & OPTIONS SEGMENT
Trading member Trading and Self Clearing member Trading and Clearing member Professional Clearing member
CURRENCY DERIVATIVES SEGMENT
Trading member Trading and Clearing member Professional Clearing member
1. Name of Applicant (In BLOCK Letters) :
2. Constitution: Individual/Partnership firm/Corporate/Others(please specify)
3. Date of Incorporation/Registration: DD/MON/YYYY
4. Permanent Account No :
5. Brief Description of principal activity of the applicant :
6. Brief description of group, if any, to which the applicant belongs :
7. Registered Office : (Applicable only in case of corporate/partnership firms) Flat/Door/Block no. Name or Premise/ Building Road/Street/Lane/Post Office Area/Locality/Taluka City District State/Union Territory Pincode STD Code Telephone No. Mobile No. Fax E-mail ID Website
8. Correspondence/Mailing address (Pls give the complete details as point no. 7, in case the same is different from registered address) Flat/Door/Block no. Name or Premise/ Building Road/Street/Lane/Post Office
Area/Locality/Taluka City District State/Union Territory Pincode STD Code Telephone No. Mobile No. Fax E-mail ID Website
9. Details of the Chief Executive Officer/Managing Director/Managing Partner/Proprietor Name Designation Tel. No. Fax No. Mobile No. E-mail ID PAN
10. Net worth of the applicant is Rs.__________ Lakhs as on ___________ (date-DD/MON/YYYY) (The Networth certificate duly certified by chartered account is enclosed)
11. Name of the Exchange (s) on which the applicant/ partner / designated director / dominant promoter(s) /group company /associate company is a member
Sr. No. 1 2 3
Name of the Exchange
Registration no. granted by Regulator(s)
(Details provided in Annexure C 2)
12. Details of compliance officer Name Mobile No. Email PAN
13. Name and address of the bankers and the facilities availed from such banks. (Please enclose reference letters from each bank)
14. Details of Income Tax Paid. (Copy of the latest Income Tax Assessment Order enclosed)
15. Details of fund based activities, for eg.:
Sr. No. Activity Details
a) b) c) d) e)
Leasing / Hire Purchase Lending Intercorporate Deposits Loans and Advances Any other type of Lending Other activities (Please give full details
f)
16. Details of processing fees and admission fees paid in favour of NSEIL. Payment in the form of Demand Draft / Pay order / Cheque Instrument no. Issuing Bank Amount Instrument date
I/We hereby state that the particulars given in the application form are true, correct and complete to the best of my/our knowledge and information. I/We also state that no relevant material fact has been suppressed.
I/We also hereby undertake that I/we have never been declared/rendered incompetent to enter into contract under any law in force in India. Further, I/we have never committed any act which may render us liable to be wound up and I/we have reported about provisional liquidator or receiver or official liquidator appointed to us, if any, by a competent court.
I/We undertake that all court cases against applicant / directors / partners / promoters /staff have been disclosed by us and that none of them is / are involved in any financial irregularities. I /partners / promoters / directors have never been adjudged bankrupt or have been proved to be insolvent at any time. I/we have disclosed if involved, all litigations, suits or proceedings and any financial liability of contingent or unascertained nature. Further, the applicant/partners/promoters/directors have never been convicted of an offence involving fraud or dishonesty or financial irregularities and have never been pronounced guilty of a criminal offence involving moral turpitude.
I/We have disclosed and reported all the details in regard to inquiry / investigation, if any, that has been conducted by any authorities including government agencies against applicant / promoters / partners / directors etc., during past 10 years and the findings of the concerned agencies available with us have been disclosed fully along with this application.
I/We undertake that any misstatement or misrepresentation or suppression of facts in connection with this application for trading/clearing membership or breach of any undertaking or condition of
admission to trading/clearing membership entails rejection of application or of trading cum clearing membership.
I/We shall pay the required fee and deposits to the Exchange and submit the necessary documents as required by the Exchange for my/our seeking the trading/clearing membership of the Exchange/ Clearing Corporation. I/We also agree to provide Exchange/ Clearing Corporation with all such documents as may be called for and be required by Clearing Corporation from time to time. I/We hereby undertake that we will immediately notify the NSE/Clearing Corporation of any change in information provided in the application.
I/We hereby undertake to inform NSE/Clearing Corporation about any change in the above mentioned facts within 15 days of the change taking place/coming to our knowledge, whichever is earlier.
For and on behalf of the Board Signatories* (With name in Block Letter) 1. 2.
Encl: 1. Disclosures, if any 2. Current status / No Objection Certificate from the concerned agency which is carrying out inquiry/investigation, if any.
*To be signed by: Proprietor in case of individual. Two Partners in case of firm (Partners who are named as authorized signatories in the Letter appointing authorized signatories). Two directors in case of corporate (Directors who are named as authorized signatories in Board Resolution).
Annexure : C-1
Certificate dated _________ submitted by ____________________ to NSEIL/NSCCL
CERTIFICATE
This is to certify that the Net worth of M/s./Mr./Ms.______________________as on _____________as per the statement of computation of even date annexed to this report is Rupees______________ only).
We further certify that:
M/s./Mr./Ms._________________ is not engaged in any fund-based activities or business other than that of securities. Existing fund based assets, if any have been divested from the books of account and have not been included for the purpose of calculation of networth.
the computation of networth based on my / our scrutiny of the books of accounts, records and documents is true and correct to the best of my / our knowledge and as per information provided to my / our satisfaction.
the computation of networth is in accordance with the method of computation prescribed by SEBI as per Regulation 16C of the SEBI (Stock Brokers & Sub-Brokers) Regulations, 1992 / Regulation 16L of the SEBI (Stock Brokers & Sub-Brokers) (Amendment) Regulations, 2008. (strike off whichever is not applicable)
Place: For (Name of Accounting Firm) Date:
Name of Partner/Proprietor
ANNEXURE C-1A
Computation of Networth of Clearing Members of Futures Segment / Currency Derivatives Segment as part of Membership Requirements
The method of computation of Networth as prescribed by SEBI as per Regulation 16C of the SEBI (Stock Brokers & Sub-Brokers) Regulations, 1992 / Regulation 16L of the SEBI (Stock Brokers & Sub-Brokers) (Amendment) Regulations, 2008. (strike off whichever is not applicable) is as follows:
Capital + Free Reserves Less: Non-allowable assets viz., (a) (b) (c) (d) (e) (f) (g) (h) (i) Fixed Assets Pledged Securities Member s card Non-allowable securities (unlisted securities), Bad deliveries Doubtful Debts and Advances* Prepaid expenses, losses Intangible Assets 30% of Marketable securities
*Explanation:
Includes debts/advances overdue for more than three months or given to associates.
Annexure C 1B.
Computation of Networth of Trading Members as part of Membership Requirements
The trading members are required to provide the Networth Certificate as per the format provided in Annexure C - 1 The trading members have the option of calculating their networth as per any of the two methods given below. However, once a trading member chooses one of the two given methods, he will have to continue to compute his networth using the same method unless a change of method is specifically approved by the Exchange.
Method 1: The networth should be computed as per this method by following a definition of networth adopted by practising Chartered Accountants for finalisation of accounts. For clarification purpose, the basic procedure to be employed in calculation of the networth and the treatment of each and every component of the balance sheet as per the book value or the books of accounts of the trading member are given in Annexure C 1C.
Or
Method 2: By valuation of their assets on the following basis :
A.
Listed ( Quoted) investments in the name of the applicant (at market value) (Detailed list to be enclosed)
B. C. D. E.
Margin of 30% on market value of listed (quoted) Investments Net value of listed Investments (A) (B) Investments in unlisted (unquoted) companies (as per Note No. 3) Margin of 50% on (D)
F.
Net value of unlisted Investments (D) (E)
G. Other Investments (at cost) like PPF, NSC at current value, Statutory deposits with the Exchange, Deposits with registered NBFCs, Bank FDs H. Total Net Investments (C) + (F) + (G)
I. Market Value of Land & Building component of the Fixed Assets (Full details of such assets like survey number, location, address, extent of land & building to be furnished) J. K. L. M. N. O. Margin on I at 50% Net value of such fixed assets (I J). Debtors not exceeding 3 months + Cash & Bank balance Current Liabilities Long term liabilities Networth (H + K + L) (M + N)
Notes :1. For computation of loans and advances as a component of current assets, all advances / loans other than those arising out of securities dealing have to be excluded. Only such loans and advances arising due to the securities dealings are to be included as current assets for the purpose of networth computation.
2.
Valuation of fixed assets for the consideration of networth would have to be certified by government approved valuers and the value would hold good for 3 years unless a fresh valuation is submitted. Only those items of land & building that are in the name of the trading member as well as in the possession of the trading member shall be included under the head (I) - Land & Building component of the Fixed Assets. Those properties that are leased out by the trading member or taken on lease shall not be included for computation of networth. Fixed Assets other than Land & Building shall not be included for the purpose of computation of networth.
3.
Valuation of unlisted investments would be at fair value of the said investment, i.e. the average of the earning value and the break up value . For this purpose : -
a)
The break up value means the equity capital and reserves as reduced by intangible assets and revaluation reserves, divided by the number of equity shares of the investee company.
b)
The earning value means the value of an equity share computed by taking the average of profits after tax as reduced by the preference dividend and adjusted for extra-ordinary and non-recurring items, for the immediately preceding three years and further divided by the number of equity shares of the investee company and capitalised at the following rate :In case of predominantly manufacturing company, eight percent; In case of predominantly trading company, ten percent; and In case of any other company, including an NBFC, twelve percent; If, an investee company is a loss making company, the earning value will be taken at zero.
(For e.g. EV for an NBFC with capitalisation rate of 12%, is earning per share multiplied by 100/12) 4. Details of items comprising investments, current assets, current liabilities and long term liabilities should be given separately.
5.
Current assets should exclude loans to related entities, bad and doubtful debts and debts outstanding for more than 3 months, advance against capital assets, pledged securities / assets, prepaid expenses, bad deliveries and also intangible assets.
6.
Debtors should be distinguished as debtors arising from securities operations and others.
7.
Value of membership card / Deposits with any other Stock Exchange is to be excluded for the purpose of computation of networth.
8.
Advance / Investment with or debts due from persons notified under Special Court (Trial of Offences Relating to Transactions in securities) Act, 1992 are to be excluded for the purpose of computation of networth.
ANNEXUREC-1C Annexure Items Fixed Assets : Goodwill Intangible assets Land Treatment for Net Worth computation
Buildings
Leasehold
Plant and Machinery
Furniture and Fittings
Development of Property
Patents, designs Vehicles
Trademarks
and
Computers etc.( Hardware and Software ) Value of other stock exchange card Investments : Deposit with other stock exchange Value of other stock exchange card Govt. / Trust Securities
Not to be considered for Net Worth computation. Not to be considered for Net Worth computation To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation. Valuation as per AS 13. Not to be considered for Net Worth computation. Not to be considered for Net Worth computation. To be considered at book value per statement of Assets & Liabilities / Balance Sheet
Debentures or Bonds
To be considered at book value per statement of Assets & Liabilities / Balance Sheet Shares (Fully paid-up and partly To be considered at book value per paid-up) statement of Assets & Liabilities / Balance Sheet Shares/Debentures and Bonds To be considered at book value per of Subsidiary companies statement of Assets & Liabilities / Balance Sheet Immovable properties To be considered at book value per statement of Assets & Liabilities / Balance Sheet Investments in capital of To be considered at book value per partnership firms statement of Assets & Liabilities / Balance Sheet Debit Balance in P&L A/c Not to be considered for Net Worth computation. Current Assets: NSE Security Deposit To be considered at book value per statement of Assets & Liabilities / Balance Sheet NSE VSAT & UPS Deposit To be considered at book value per statement of Assets & Liabilities / Balance Sheet Stock - in - trade To be considered at book value per statement of Assets & Liabilities / Balance Sheet Sundry Debtors To be considered at book value per -more than six months statement of Assets & Liabilities / Balance -others Sheet Less: Provision for bad debts To be considered at book value per statement of Assets & Liabilities / Balance Sheet Cash on hand To be considered at book value per statement of Assets & Liabilities / Balance Sheet Fixed deposit with bank To be considered at book value per statement of Assets & Liabilities / Balance Sheet Bank balances To be considered at book value per statement of Assets & Liabilities / Balance Sheet Deposit with MTNL To be considered at book value per statement of Assets & Liabilities / Balance Sheet
Deposits for property / flat
Deposits adjustable against rent
Margins paid to NSE
Interest accrued on Investment
Margins paid to other stock exchange Loans and Advances
Advances and Subsidiaries
Loans
to
Advances and Loans to Partnership Firms in which the company or any of its subsidiaries are partners Bills of Exchange To be considered at book value per statement of Assets & Liabilities / Balance Sheet Advances recoverable in cash or kind or for value to be received (rates, taxes, insurance, etc.) Balances on Current A/c with Managing Agents or Secretaries and Treasurers Balances with Customs, Port Trust, etc. (where payable on demand) MISCELLANEOUS EXPENDITURE (to the extent not written off ) Preliminary expenses To be considered at book value per statement of Assets & Liabilities / Balance Sheet
To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation. To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet
To be considered at book value per statement of Assets & Liabilities / Balance Sheet To be considered at book value per statement of Assets & Liabilities / Balance Sheet Not to be considered for Net Worth computation.
Not to be considered for Net Worth computation. Expenses including commission Not to be considered for Net Worth or brokerage on underwriting or computation. subscription of shares or debentures
Discount allowed on the issue of shares or debentures Interest paid out of capital during construction Development expenditure not adjusted Other items LIABILITIES :
Not to be computation. Not to be computation. Not to be computation. Not to be computation.
considered for Net Worth considered for Net Worth considered for Net Worth considered for Net Worth
Share Capital : Equity / Preference Paid up Capital Not to be considered for Net Worth computation. Share Application To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Preference Share Capital Liability at book value if redeemable within 36 months. Reserves & Surplus : Capital Reserves(not including Not to be considered for Net Worth revaluation reserves) computation. Capital Redemption Reserve Not to be considered for Net Worth computation. Debenture Redemption Reserve Not to be considered for Net Worth computation. Sinking Fund Reserve Not to be considered for Net Worth computation. Revaluation Reserves To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet General Reserve Not to be considered for Net Worth computation. Share Premium Not to be considered for Net Worth computation. Profit c/f from P&L A/c Not to be considered for Net Worth computation. Secured Loans : Debentures To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Loans and Advances from To be considered as liability at book value Banks per statement of Assets & Liabilities / Balance Sheet
Loans and Subsidiaries
from To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Other Loans and Advances To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Interest accrued and due on To be considered as liability at book value Secured Loans per statement of Assets & Liabilities / Balance Sheet Unsecured Loans : To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Fixed Deposits To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Loans and Advances from To be considered as liability at book value Subsidiaries per statement of Assets & Liabilities / Balance Sheet Short Term Loans and To be considered as liability at book value Advances (Banks & Others) per statement of Assets & Liabilities / Balance Sheet Other Loans and Advances To be considered as liability at book value (Banks & Others) per statement of Assets & Liabilities / Balance Sheet Interest Accrued and due on To be considered as liability at book value Unsecured Loans per statement of Assets & Liabilities / Balance Sheet Current Liabilities and To be considered as liability at book value Provisions: per statement of Assets & Liabilities / Balance Sheet Acceptances (NSE and Others) To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Sundry Creditors (NSE and To be considered as liability at book value Others) per statement of Assets & Liabilities / Balance Sheet Subsidiary Companies To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Advance Payments To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Unclaimed Dividends To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet
Advances
Interest Accrued but not due on To be considered as liability at book value Loans per statement of Assets & Liabilities / Balance Sheet Overdrafts with Bank To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Payments due to other stock To be considered as liability at book value exchanges per statement of Assets & Liabilities / Balance Sheet Other Liabilities (if any) To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Provision for Taxation To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Proposed Dividends To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet For Provident To be considered as liability at book value Scheme/Contingencies per statement of Assets & Liabilities / Balance Sheet For insurance, pension etc. To be considered as liability at book value schemes per statement of Assets & Liabilities / Balance Sheet Other Provisions To be considered as liability at book value per statement of Assets & Liabilities / Balance Sheet Provisions : Note : Advance Payments, Investments with or debts due from persons notified under Special Cou of offences relating to transactions in securities) Act, 1992 are to be excluded for the pu computation.
Annexure : C-6 (For Corporate) Certificate dated_________ submitted by ______________________ to NSEIL
SHARE HOLDING PATTERN of _____________________ as on ______
EQUITY / PREFERENCE (Please indicate and use separate sheets for equity/preference shares) Sr No. Name $ Number shares held of Face value Amt Paid up per share (Rs. In lakh) % of total
1 2 3 4 5 6 7 8 Others TOTAL $ All initials to be expanded 100%
NOTES: 1. In case of bodies corporate holding 2% or more of the paid up capital in the trading member entity, the details of their shareholding shall also be furnished in the same format as given above 2. HUF give names of Karta and co-parceners.
3. Persons holding 2% or more of the paid up capital should be shown separately and not clubbed in Others. Date: Place:
Authorised Signatory/Director (s)
CERTIFICATE
This is to certify that the shareholding in ______________ as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.
Place: For (Name of Accounting Firm) Date: Name of Partner/Proprietor Chartered Accountant Membership Number
Annexure : C-7 (for corporate) Certificate dated_________ submitted by ____________________ to NSEIL
DETAILS OF DOMINANT GROUP as on _____
Sr No
Name of dominant shareholder
Person (s) Relation $ supportin g dominant sharehold er
No. of shares held
Total
% of Total
% of Total
Amt paid up @ @
Self Relatives 1 A A1 A2 2 B B1 B2 3 C
TOTAL
$ Please specify relation of person supporting dominant shareholder
@ : For arriving at the shareholding of persons constituting the dominant group, the shareholding of close relatives, namely parents, spouse, children and their descendants, brothers and sisters only may also be counted
provided these relatives have given an irrevocable, unconditional support in writing in the prescribed format to the Exchange.
Date: Place: Authorised Signatory/Director(s)
CERTIFICATE
This is to certify that the shareholding ______________ as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction..
Place: For (Name of Accounting Firm) Date:
Name of Partner/Proprietor
Chartered Accountant
Membership Number
IF APPLICABLE
Annexure : C-8 Certificate dated__________ submitted by_____________________to NSEIL
UNDERTAKING FROM RELATIVE OF PERSONS CONSTITUTING DOMINANT PROMOTER GROUP
I, Mr. /Ms. /Mrs. ___________, son/daughter/wife of Mr. ________________, resident of ______________________________________ am the absolute owner of ______ (no.) of shares of Rs. ___ each, Rs. _____ per share paid up, which constitutes _____ % of the total paid up capital of the company ______________________ private limited/ limited as on this date.
I state that I shall irrevocably and unconditionally support in respect of my shareholding, Mr/Ms. ________________, a shareholder in the above mentioned company. I further state that I have no objection to my above mentioned shareholding being clubbed with the shareholding of Mr. ______________________, who is my __________ (give relation s with the latter ) for the purpose of determining the dominant promoter group of the said company.
This support is irrevocable and I also undertake to give prior information to the National Stock Exchange of India Limited before selling or otherwise transferring any part or whole of my above mentioned shareholding.
WITNESS BY: Signature : Name :
SIGNATURE Name : Place :
Address : Date : Date :
CERTIFICATE
This is to certify that the Shareholding in ______________ as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction..
Place: Date:
For (Name of Accounting Firm)
Name of Partner Chartered Accountant Membership Number $ : For arriving at the shareholding of persons constituting the Dominant group, the shareholding of close relatives, namely parents, spouse, children and their descendants, brothers and sisters only may be counted provided these relatives give an irrevocable, unconditional support in writing on the prescribed format (Annexure C-8)
To be submitted by corporate Annexure : C-9 Certificate dated_________ submitted by___________________to NSEIL
Sr. No 1 2 3 4
Name of the Stock Exchange(s) on which company is listed Listed since (date)
Date: Place: Authorised Signatory/Director (s)
. Format for Non-Defaulter Undertaking
UNDERTAKING
( To be given on the letterhead of the company)
We, M/s.___________, hereby declare that we have neither been declared defaulters by any Exchange in India/ by SEBI, nor are we related or associated with any other entity/person that have been declared defaulters by any Stock Exchange in India/SEBI.
We, M/s. ___________ further declare that none of the shareholders and directors of our company have been declared as defaulters by any Stock Exchange in India/SEBI or are related or associated with any other entity/person who have been declared defaulters by any Stock Exchange in India/SEBI.
We further declare that no enquiry/investigation has been initiated/pending against M/s._______or any of the shareholders/directors by any Stock Exchange/SEBI.
(To be Stamped & Signed by authorised signatories)
Date:
UNDERTAKING WITH RESPECT TO DESIGNATED DIRECTORS
PART 1
TO WHOMSOEVER IT MAY CONCERN (To be certified by a practicing chartered accountant/ practicing company secretary)
This is with reference to the application of M/s _____________________ (Applicant Company) for seeking provisional membership of the Exchange/NSCCL and subsequent application for registration of application with SEBI in Capital Market/Wholesale Debt Market/F&O segment / Currency Derivatives Segment.
Based on the information, explanation and documents given to us, we state that the designated directors Mr./Ms. ________________ and Mr./Ms. _____________ (names of designated directors) meet the eligibility requirements as prescribed in Securities Contracts (Regulation) Rules, 1957 (Rule 8(4A) and other relevant provisions) and SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
This confirmation has been issued on the request of the applicant company for submitting to the NSEIL/NSCCL/SEBI.
For M/s Chartered Accountant Stamp and Signature Membership No.
Place Date
: :
UNDERTAKING WITH RESPECT TO DESIGNATED DIRECTORS
PART II
TO WHOMSOEVER IT MAY CONCERN
(To be stamped and signed by authorised signatories/company secretary of applicant corporate)
We, M/s______________ hereby confirm that our designated directors Mr./Ms. _________ and Mr/Ms. _____________meet the eligibility requirements as prescribed in Securities Contracts (Regulation) Rules, 1957 (Rule 8(4A) and other relevant provisions) and SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
We undertake to ensure that the above individuals or whosoever is identified by the corporate as designated directors, in future, till the time corporate is registered as a member or the Exchange will continue to meet the eligibility requirements as per Securities Contracts (Regulation) Rules, 1957 and SEBI (Stock Brokers & Sub-brokers) Regulations, 1992.
For M/s (name of applicant company)
Stamp and Signature
Place Date
: :
UNDERTAKING REGARDING ASSOCIATION / NON-ASSOCIATION
M/s ______________________________________________, hereby confirm that the designated directors is / are not associated with any of the members / sub-brokers / authorized persons of the Exchange.
OR
M/s ______________________________ hereby confirm that the following designated directors are associated with the following members / sub-brokers / authorized persons of NSEIL in the respective capacity stated below:
Sr. No
Name of Director
Capacity
Name of members / sub-brokers / authorized persons with whom associated
M/s ______________________________ further confirm that the designated directors stated above will disassociate with the above mentioned members / sub-brokers / authorized persons of the Exchange prior to our enablement. For M/s (name of company)
Stamp and Signature
CERTIFIED TRUE COPY OF CIRCULAR RESOLUTION PASSED IN BOARD MEETING DATED __________________
RESOLVED THAT: I/We (name of applicant company) is and hereby authorized for applying for membership on the National Stock Exchange of India Limited and /or National Securities Clearing Corporation Limited in the following segments (tick whichever is applicable):
o o o o o o o o o
Wholesale Debt Market Segment Capital Market Segment Futures & Options Segment Trading member Futures & Options Segment Trading and Self Clearing Member Futures & Options Segment Trading & Clearing Member Futures & Options Segment Professional Clearing Member Currency Derivatives Segment Trading Member Currency Derivatives Segment Trading and Clearing Member Currency Derivatives Segment Professional Clearing Member.
FURTHER resolved that (name with designation) and / or (name with designation) are authorized to execute individually/jointly (strike whichever is not applicable) the documents necessary for acquiring membership on behalf of the company. Their specimen signatures are as follows:
Sr. No
Names of authorized signatories
Specimen Signatures
Certified to be true.
For (name of applicant company)
(Names and signatures of authorized signatories of the applicant or designated directors or company secretary of the applicant company).
DECLARATION REGARDING ASSOCIATION / NON-ASSOCIATION WITH OTHER RECOGNIZED STOCK EXCHANGES / COMMODITY EXCHANGES
I / We / M/s (Name of applicant), hereby declare the following: (a) Are you a member of any other recognized Stock Exchange(s) or Commodity Exchange(s)?
YES
NO
(b) Incase yes, kindly provide the following details:
Sr. No
Name of Exchange
Trading segment
Authority granting registration
Registration number
Registration date
For M/s (name of company)
Stamp and Signature
Place Date
: :
FORM A
SECURITIES AND EXCHANGE BOARD OF INDIA (Stock Brokers and Sub-Brokers) Regulations 1992 (Regulation 3)
APPLICATION FORM FOR REGISTRATION AS STOCK BROKERS WITH SECURITIES AND EXCHANGE BOARD OF INDIA
1. Name of Member
:
2. Address of Member
:
3. Trade Name of Member
:
4. Form of Organisation-Sole Proprietorship Partnership, Corporate Body, Financial Institution. Pls. Give names of Proprietor/ Partner, Directors
:
5. Educational Qualifications
:
6. Date of admission to Membership
:
7. Whether member of more than one Stock Exchange? If so, please give name(s) of the Stock Exchange(s) with Code Number(s)
:
8. Indicate Fax, Telex and Phone number(s) of : office and residence
9. In the case of members admitted on any Stock Exchange after February 21, 1992 the copy of Information given to the Stock Exchange at the Time of admission
:
ANNEXURE H -2
ADDITIONAL INFORMATION TO BE SUBMITTED AT THE TIME OF REGISTRATION OF STOCK BROKER WITH SEBI
1. Name of the Stock Exchange
2.a) Name of the Applicant Member Broker
b) Exchange Clearing Code No. (If allotted by the Stock Exchange)
3. Trade Name of Member
4. Address of Member
Tel. No. (O)
Tel. No. (R)
5. Form of Organisation : Please tick the relevant entity
a) Sole Proprietorship
b) Partnership
c) Corproate Body I) Financial Institution
II) Others
III) Foreign Joint Ventures
(If an Indian Company is holding more than 25% of total equity in the joint venture, please give details of top five shareholders of Indian Company).
Name of Indian Company % Holding 1. 2. 3. 4. 5.
FIPB Approval, if applicable
6.A) Sole Proprietorship:
Name of Proprietor
Educational Qualification
Age (on the date of Experience (specify filing of application) the nature and years)
B) Partnership :
Name of Partners
Age on the Educational date of filing Qualification of application
Experience In case of (specify the Partner(s) is/are nature & years) registered with SEBI, give SEBI Reg. No.
C) Corporate Body (Financial Institution/Others) :
i) MOA Object Clause contains stock broking as one of the object in
a)
Main Object
b)
Other Object
c)
Incidental Object
(If stock broking clause appears in other object, please attach a copy of special resolution to amend the MOA to incorporate Stock Broking in main object clause)
ii)
Mention relevant Clause No.
(Please enclose copy of the relevant clause of the MOA duly certified by the Stock Exchange. If certified copy is not enclosed, application would be returned).
iii)
Information regarding directors :
Experience Whether (specify nature directors in other and years) corporate bodies engaged in capital markets (please give names and SEBI Reg. No.)
Name of directors Percentage of Educational with Designation Share holding Qualification (whether wholetime/designated/ additional
iv)
Details of top five shareholders:
Name of holders
Share Percentage of Educational Share holding Qualification
Experience Whether Share (specify nature holders in other and years) corporate bodies engaged in capital markets (please give names and SEBI Reg. No.)
7. a) Date of admission to Membership of the Stock Exchange
b) Mode of Acquiring Membership (Please attach old SEBI Regn. Certificate in all cases other than the case of new membership)
i) ii) iii) iv)
New Membership Conversion Succession Auction Purchase
(In case member has become defaulter) v) vi) Market Purchase Transfer of another company under same management (please specify reasons) vii) Others Please specify
c) Please give the following information in all the cases other than the case of new membership
i) Name of the previous holder of the card
ii) SEBI Regn. No.
iii) Date of Regn. No.
d) Whether applicant is member of more than one Stock Exchange?
YES
NO
e) If yes, please give name(s) of the stock exchange(s) with Code No. and SEBI Regn. No.
Name of Exchange(s) SEBI Regn. No.
8.a) Whether any of the Associate Companies/Partnership/Proprietorship Firm is/are having direct/indicate interest (*as defined below) in capital market
YES
NO
* The member is deemed to have direct/indirect interest in the following conditions:
i) Where he is individual, he or any of his relative being a broker/any intermediary, he or any of his relative being a partner in a broking firm/any intermediary, he or any of his relative being a director in a broking company/any intermediary or he or any of his relative clubbed together holding substantial equity in any broking company/any intermediary engaged in capital market.
ii) Where it is partnership firm/company, the relative(s) of partner(s)/director(s) in the firm(s)/corporate body being a broker/any intermediary or being partners(s)/ director(s) in any broking/intermediary engaged in capital market. iii)Relative shall mean husband, wife, brother, unmarried sister or any linear ascendant or descendant of any individual.
d) If yes, please give details (you may attach separate sheet, if required)
Name
Form Organisation
of Type of Inter- Whether Nature mediary # registered with interest SEBI (give SEBI Reg. No.)
of
# Merchant Banker, Portfolio Manager, Registrar to Issue & Share Transfer Agent, Banker to an Issue, Mutual Fund, Venture Capital, Underwriter, Debenture Trustee, FII.
9. Disciplinary Action initiated/taken against the Associate entities, as indicated in 8(b) above. (Please state details of nature of violation, action initiated/taken and by which authority)
a) Disciplinary action taken by SEBI (If yes, please attach details mentioning nature of violation and action taken)
YES
NO
b) Disciplinary action taken by any other authority (Please specify details of nature of violation and action initiated)
YES
NO
c) Disciplinary action initiated by SEBI (please attach details of nature of violation and action initiated) YES NO
d) Disciplinary action initiated by any other authority (please attach details of nature of violation and action initiated)
YES NO
10. a)
Net-worth as per the requirement of the Exchange (Rs. In Lakhs)
b) Applicant s net-worth in accordance with formula Prescribed by concerned stock exchange (Rs. in Lakhs) (Certificate from a qualified C.A. certifying the above should be enclosed)
b)
Please indicate the net-worth as per the following formula (Rs. in lakhs)
i) ii) iii)
Paid up capital Free Reserves (Exclusive of Revaluation Reserves) Less: Misc. Expenditure not written off
Total Net-worth (i+ii=iii)
I/We declare that the information given in this form is true to the best of my knowledge and belief.
Date
:
Signature Name and address of the applicant
List of Enclosures:
DD of Rs.5000/- (DD No.__________ dated_____________, drawn on 1. Registration fees ________________________Bank). 2. Copy of relevant clause of MOA duly certified by the stock exchange. 3. Certificate from the qualified Chartered Accountant certifying the networth and paid up capital 4. Undertaking by applicant that he/it had not introduced through any member broker/ sub-broker of the Exchange any fake/forged/stolen shares in the Exchange/market. If yes, details thereof including action taken, if any, by the applicant.
Certification of the Exchange
The above details have been scrutinised as per record made available to the stock exchange.
SIGNATURE NAME DESIGNATION SEAL OF STOCK EXCHANGE
: : : :
FORM AA
SECURITIES AND EXCHANGE BOARD OF INDIA (STOCK BROKERS AND SUB-BROKERS) REGULATIONS, 1992 (REGULATION 16A)
APPLICATION FORM FOR REGISTRATION AS TRADING AND/OR CLEARING MEMBER IN F&O SEGMENT
1. Name of the Derivatives Exchange/Segment/Clearing Corporation/Clearing House of which the applicant is the member. Please furnish the tenure of membership. 2. Name of the Member with Code No. 3. Whether the applicant is to act as Trading member and/or Clearing member and/or Self Clearing Member 4. If the applicant is to act as Trading member, the applicant to furnish the name and details of the Clearing member, through whom, he intend to clear and settle his trade
5. Address of the Member 6. Trade Name of Member 7. Form of Organisation: Sole proprietorship/Partnership/Corporate body/Financial institution (Please give names of proprietor/partners/directors). 8. Please furnish a copy of Memorandum and Articles of Association or the Partnership Deed, as the case may be. 9. Educational Qualifications of proprietor/partners/directors, etc. 10. Whether the applicant or its sales personnel or approved user has passed any certification programme? If so, please specify the detail.
11. The experience of the applicant or their two directors or partners in derivatives trading or securities market, if so, please give details. 12. Date of admission to membership to the derivatives exchange or derivatives segment/Clearing Corporation/Clearing House. 13. Whether member of more than one exchange or derivatives segment or clearing corporation or clearing house of any segment? If so, please give name(s) of the Clearing Corporation/clearing house, or any stock exchange(s) with code number(s)? 14. Networth of the applicant. Please furnish details along with necessary documents in support thereof. 15. Whether the applicant or its director or partners, any time convicted of any economic offence? If so, please furnish the details? 16. Whether the applicant or its directors or partners, declared insolvent/bankrupt or declared defaulter by any exchange? If so, please furnish details? 17. Whether the applicant or its directors or partners anytime subjected to any proceedings or penalty by the Board under SEBI Act or any of the regulations framed under the SEBI Act? If so, please furnish the details. 18. Indicate fax, telex and phone number(s). 19. Whether the application is accompanied by a requisite fee as per Schedule IV of the Regulations as applicable to the applicant.
FORM AB APPLICATION FORM FOR REGISTRATION AS TRADING AND/OR CLEARING MEMBER IN CURRENCY DERIVATIVES SEGMENT
1. Name of the Currency Derivatives Exchange/Segment/Clearing Corporation/Clearing House of which the applicant is the member. Please furnish the tenure of membership.
2. Name of the Member with Code No.
3. Whether the applicant is to act as Trading member and/or Clearing member and/or Self Clearing Member
4. If the applicant is to act as Trading member, the applicant to furnish the name and details of the Clearing member, through whom, he intend to clear and settle his trade
5. Address of the Member 6. Trade Name of Member
7. Form of Organisation: Sole proprietorship/Partnership/Corporate body/Financial institution (Please give names of proprietor/partners/directors).
8. Please furnish a copy of Memorandum and Articles of Association or the Partnership Deed, as the case may be.
9. Educational Qualifications of proprietor/partners/directors, etc.
10. Whether the applicant or its sales personnel or approved user has passed any certification programme? If so, please specify the detail.
11. The experience of the applicant or their two directors or partners in Currency derivatives trading or securities market, if so, please give details. 12. Date of admission to membership to the Currency derivatives exchange or Currency derivatives segment/Clearing Corporation/Clearing House.
12. Whether member of more than one exchange or currency derivatives segment or clearing corporation or clearing house of any segment? If so, please give name(s) of the Clearing Corporation/clearing house, or any stock exchange(s) with code number(s)?
14. Networth of the applicant. Please furnish details along with necessary documents in support thereof.
15. Whether the applicant or its director or partners, any time convicted of any economic offence? If so, please furnish the details?
16. Whether the applicant or its directors or partners, declared insolvent/bankrupt or declared defaulter by any exchange? If so, please furnish details.
17. Whether the applicant or its directors or partners anytime subjected to any proceedings or penalty by the Board under SEBI Act or any of the regulations framed under the SEBI Act? If so, please furnish the details.
18. Indicate fax, telex and phone number(s). 19. Whether the application is accompanied by a requisite fee as per Schedule IV A of the Regulations as applicable to the applicant. I declare that the information given in this form is true and in the event of any information furnished is false, misleading or suppression of facts, my certificate of registration is liable to be cancelled by SEBI without assigning any reasons whatsoever
Recommendation of the Currency derivatives exchange/Currency derivatives segment, clearing corporation/House
This is to certify that _________________________________________________ is a member of this Currency Derivatives Exchange/Currency Derivatives Segment or Clearing Corporation or Clearing House and is recommended for registration with the Securities and Exchange Board of India.
Signature
:
Name
:
Designation :
Undertaking for Fit and Proper person
UNDERTAKING
(To be given on the letterhead of the company)
I / We, M/s ____________ (name of the applicant) hereby declare that I/we am/are fit and proper person as per SEBI (Criteria for Fit and Person) Regulations, 2004 and SEBI (Stock Brokers & Subbrokers) Regulations, 1992. We confirm the following in this regard: (a) the applicant or the intermediary, as the case may be or its whole time director or managing partner has not been convicted by a Court for any offence involving moral turpitude, economic offence, securities laws or fraud; (b) no order for winding up has been passed against the applicant or the intermediary; (c) the applicant or the intermediary, or its whole time director, or managing partner has not been declared insolvent and has been discharged;
(d) no order, other than an order of suspension of certificate of registration as an intermediary, restraining, prohibiting or debarring the applicant or the intermediary, or its whole time director or managing partner from dealing in securities in the capital market or from accessing the capital market has been passed by the Board or any other regulatory authority wherein a period of three years from the date of the expiry of the period specified in the order has not elapsed;
(e) no order canceling the certificate of registration of the applicant or the intermediary has been passed by the Board on the ground of its indulging in insider trading, fraudulent and unfair trade practices or market manipulation wherein a period of three years from the date of the order has not elapsed; (f) no order withdrawing or refusing to grant any license / approval to the applicant or the intermediary, or its whole time director or managing partner which has a bearing on the capital market, has been passed by the Board or any other regulatory authority wherein a period of three years from the date of the order has not elapsed; (g) the applicant or the intermediary, is financially sound;
(h) there is no other reason, recorded in writing by the Board, which in the opinion of the Board, renders such applicant or the intermediary, or its whole time director or managing partner unfit to operate in the capital market.
For ______ (Name of Applicant Member)
For _______ (Name of Applicant Member)
Name of the Designated Director
Name of the Designated Director
Note:
1. Undertaking to be stamped & signed by the proprietor or two designated directors/partners as applicable. 2. In case the applicant wishes to furnish any details pertaining to the above mentioned confirmations, the same can be provided as annexure (duly stamped and signed by the authorised signatories) to the undertaking.
Date: Place:
Applicable for corporates
TO, NSEIL/NSCCL, Exchange Plaza Bandra Kurla Complex Bandra (E) Mumbai 400051
Date:
Dear Sir,
Sub: Application for New membership.
I / We / M/s ______________________________________________, hereby confirm that the following:-
a) No disciplinary action was taken against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by SEBI. b) No disciplinary action was taken against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by any other authority. c) No disciplinary action was initiated against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by SEBI. d) No disciplinary action was initiated against Company / Associate / Designated Director / Majority Shareholder (more than 10%) by any other authority. e) None of the Director(s) / Designated Director(s) of the company was/were debarred and/or no action was initiated against them by the SEBI from associating from the capital market and the company/firm undertakes that it will not appoint any such person/s, in future as director(s)/designated director(s) of the company. f) Necessary infrastructure like adequate office space, equipments and man power to effectively discharge his activities is available with us. g) As long as the company is engaged in stock broking as a member of any recognized Stock Exchange in India, it will engage itself in only such business as a member of a recognized Stock Exchange is permitted to engage in under the securities and contracts (Regulation) Rules, 1957, and the Rules, Bye-laws & regulations of the Stock Exchange. Further, we are aware and acknowledge that if we engage in any other business the Exchange will be entitled to take disciplinary action (including fine, suspension &/or expulsion) against us.
CHECKLIST WHILE SUBMITTING APPLICATION No. 1. Particulars Application form Points to be checked Dated, Stamped and Signed by the authorised signatories (as appointed in Board Resolution) on each page In favour of National Stock Exchange of India Limited, payable at Mumbai, amounting to Rs. 11,030/(Processing fee of Rs. 10,000 plus 10.30% service tax) and 1. Certificate (Annexure C1) along with computation statement to be submitted. 2. Computation should be as per (a) NSE Circular No. 93 (Ref.No.: NSE/MEM/475) dated March 4, 1998 for Capital Market/F&O Trading/WDM Refer (Annexure C-1B) (b) Refer Annexure C-1A Self Clearing/Clearing / Professional Clearing in F&O segment and Trading / Clearing / Professional Clearing in Currency Derivatives Segment. Kindly submit three original sets* If applicable please attach the latest status report from the relevant exchange 1. Identify at least 2 designated directors who are graduate by qualification and have at least 2 years of experience in securities market. 2. Attach self attested bio-data, experience certificate issued by SEBI registered intermediary and bearing the SEBI registration no. of the entity and cross certified copies of proof of age, educational qualification for all directors Kindly submit three sets of Annexure, Bio data, Age and Education proof and Experience Certificate.* F&O Certification Course should be valid at the time of application Should have atleast 750 sq ft area.
2.
Demand draft/Pay order/Cheque
3.
C-1 Certificate of netwoth
4.
C-2 Details of Other Stock Exchange Membership C-3 Details of Directors
5.
6.
C-4 Details of Core Dealers
7.
C-5 Details of infrastructure
Should be accompanied by documentary reference. 8. C-6 Details of shareholding/sharing pattern Paid up capital should be 30 lakhs in case of corporate applicant. Kindly submit three original copies.* Ensure that dominant promoters norms of the Exchange are being met. Giving details viz., account no., Type of account and date of opening the accounts Kindly submit three original copies.* 1. Audited Balance Sheet and P & L A/c 2. MOA/AOA - Kindly submit three original copies.* 3. Copy of valid certificate of any one of designated director / compliance officer related to at least one of the following NCFM Modules : (a) Securities Market (Basic) Module (b) Compliance Officer (Broker) Module (c) Capital Market (Dealers) Module (d) Derivatives Market (Dealers) Module 4. Designated Directors Undertaking Kindly submit three original copies.* 5. Non-Defaulter Undertaking - Kindly submit three original copies.* 6. Undertaking for fit and proper person. In case applying for Trading cum clearing membership and for only clearing membership in the Currency Derivatives Segment 1. To be on plain paper 2. Details for all points to be provided 3. Each page to be signed by the authorised signatories along with the rubber stamp 4. Exchange recommendation and member certification to be on same page 1. To be on plain paper 2. Details for all points to be provided 3. Each page to be signed by the authorised signatories along with the rubber stamp 4. Exchange recommendation and member certification to be on same page 5. 2 copies to be provided in case opting for clearing membership.
9.
C-7 Details of dominant promoter
10.
Bankers reference letter
11. 12.
Board Resolution Enclosures in addition to above
13.
DD of Rs. 50000/- favouring SEBI
14.
Form A and Form H2
15.
Form AA (F&O Segment) / Form AB (Currency Derivatives Segment)
16.
Declaration for non-introduction of fake and forged shares
17.
2 NCFM / equivalent test Certificates for F&O segment 2 NISM certificates for Currency Derivatives segments DD of Rs. 50,000/- in favour of SEBI payable at Mumbai
1. To be on letterhead 2. 2 copies required if opting for membership of F&O segment as well as Currency Derivatives segment 1. Certificate to be valid. 2. Certified true copy to be submitted 1. Certificate to be valid. 2. Certified true copy to be submitted 1. Required incase opting for Clearing membership of Currency Derivatives Segment
18.
19.
doc_582470463.docx