9911796707
TMI BlogSecurities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2000.X X X X Extracts X X X X X X X X Extracts X X X X ..... stock exchange to clear and settle trades in securities." "(aa) 'clearing member' means a member of a clearing corporation or clearing house of the derivatives exchange or derivatives segment of an exchange, who may clear and settle transactions in securities." (ii) The existing 'clause (a)' shall be renumbered as 'clause (aaa)'; (iii) A new clause (ga) shall be inserted after clause (g) and before clause (h), namely; "(ga) 'trading member' means a member of the derivatives exchange or derivatives segment of a stock exchange and who settles the trade in the clearing corporation or clearing house through a clearing member."; 2. After Chapter III and before Chapter IV, a new Chapter IIIA shall as such be inserted, namely; "Chapter IIIA Registration of trading and clearing members Application for registration of Trading member or Clearing member 16A (1) An application for grant of certificate of registration by a trading member of a derivatives exchange or derivatives segment of a stock exchange shall be made in Form AA of Schedule - I, through the concerned derivatives exchange or derivative segment of a stock exchange of which he is a member. (2) An application for grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant who desires to act as a clearing member, in addition to complying with the requirements of sub-regulation (1), shall have a minimum net worth of ₹ 300 lacs and shall deposit at least a sum of ₹ 50 lacs or higher amount with the clearing corporation or clearing house of the derivatives exchange or derivatives segment in the form specified from time to time. Explanation : For the purpose of sub-regulations (2) and (3), the expression 'net worth' shall mean paid up capital and free reserves and other securities approved by the Board from time to time (but does not include fixed assets, pledged securities, value of member's card, non-allowable securities (unlisted securities), bad deliveries, doubtful debts and advan-ces (debts or advances overdue for more than three months or debts or advances given to the associate persons of the member), prepaid expen-ses, losses, intangible assets and 30% value of marketable securities). Procedure for registration 16D The Board on being satisfied that the applicant is eligible, shall grant a certificate in Form DA of Schedule I, to the applicant and send an intimation to that effect to the derivatives segment of the stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e II, shall be applicable mutatis mutandis to the trading member, clearing member and such members shall at all times abide by the same. (2) The trading member and clearing member shall abide by the code of conduct as specified in the rules, bye-laws and regulations of the derivatives exchange or derivatives segment of the exchange. (3) The trading members shall obtain details of the prospective clients in 'Know Your Client' format as specified by the Board before executing an order on behalf of such client. (4) The trading member shall mandatorily furnish 'Risk Disclosure Document' disclosing the risk inherent in trading in derivatives to the prospective clients in the form specified by the derivatives exchange or derivatives segment. (5) The trading or clearing member shall deposit margin or any other deposit and shall maintain position or exposure limit as specified by the Board or the concerned exchange or segment or clearing corporation or clearing house from time to time. Chapter IV, V and VI applicable 16-I (1) The provision of Chapter IV, V and VI shall be applicable mutatis mutandis to a trading member and a clearing member and such members shall abide by the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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. Dated : Signature Recommendation of the derivatives ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 500 crore in the financial year, a sum of ₹ 10,000 plus 10 paisa per ₹ 1,00,000 of turnover, for the turnover in excess of ₹ 500 crore in the financial year. Explanation : For the purpose of clause 2, the expression 'annual turnover' shall mean the aggregate value of all trades, executed by the trading member on the derivatives exchange or the derivatives segment and shall also include the value of trades settled on the expiration of derivatives contracts. 3. Every remittance of fees by a trading member as specified in clause 2 shall be made every financial year as under :- (a) For the first financial year in which certificate of registration is granted a sum of ₹ 10,000 shall be paid along with the application for registration. (b) For the subsequent financial years from the initial registration : (i) A sum of ₹ 10,000 shall be paid before 1st June of that financial year; and (ii) A balance fee of the preceding financial year for the turnover in excess of ₹ 500 crores shall be paid before the 1st June of the financial year. (c) The remittance shall be accompanied by a certificate authenticating the turnover by the concerned deriv ..... 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