NATIONAL SECURITIES CLEARING CORPORATION LIMITED
CAPITAL MARKET SEGMENT
Circular No. 0407
Download No.: NSCCL/SEC/2009/13060
September 10, 2009
To
All Clearing Members and
Custodians
In pursuance of Regulations of the
Capital Market segment of National Securities Clearing Corporation Ltd. and in
replacement of all earlier circulars issued, members of the Capital Market
segment are hereby notified the following:
|
Sr. No. |
Description |
|
Item 1 |
CLEARED AND NON CLEARED DEALS |
|
Item 2 |
CLEARING & SETTLEMNT |
|
Item 3 |
PROCEDURE FOR SETTLEMENT OF NON CLEARED DEALS |
|
Item 4 |
CLEARING DAYS AND SCHEDULED TIME |
|
Item 5 |
MAINTENANCE OF DEPOSITORY ACCOUNT |
|
Item 6 |
PROCEDURE FOR PAY-IN /PAY-OUT OF FUNDS |
|
Item 7 |
PROCEDURE FOR PAY-IN/PAY-OUT OF SECURITIES |
|
Item 8 |
VALUATION PRICE |
|
Item 9 |
CLOSING OUT |
|
Item 10 |
LIQUID ASSETS |
|
Item 11 |
MARGINS |
|
Item 12 |
CHARGES AND PENALITES |
|
Item 13 |
SETTLEMENT FUND |
|
Item 14 |
GUIDELINES FOR GOOD / BAD DELIVERY |
|
Item 15 |
FORMAT OF MEMBERS STAMP |
|
Item 16 |
DELIVERY UNITS |
|
Item 17 |
BAD DELIVERY CELL |
|
Item 18 |
COMPANY OBJECTIONS PROCEDURES |
|
Item 19 |
DOCUMENT AND REGISTRATION |
|
Item 20 |
FAKE/ FORGED/STOLEN CERTIFICATES |
|
Item 21 |
CERTIFICATION OF GOOD/BAD DELIVERY |
|
Item 22 |
REQUEST CASES & BAD DELIVERIES |
|
Item 23 |
CLEARING HOUSE PROCEDURES |
|
Item 24 |
CLEARING AND OTHER FORMS |
|
Item 25 |
ELECTRONIC REPORTING |
|
Item 26 |
MUTUAL FUNDS SERVICE SYSTEM |
|
Item 27 |
PRIVITY OF CONTRACT |
For any further clarifications members may contact the Clearing Corporation:
|
Department |
Contact Numbers |
Email ID |
|
Securities |
022-26598267/68
|
securities_nsccl@nse.co.in |
|
Risk Group |
022-26598266/26598168 |
risk_group@nse.co.in |
|
Collaterals |
022-26598263 / 65 |
collaterals@nse.co.in |
For
National Securities Clearing Corporation Limited
Rana Usman
Asst. Vice President
Item 1
CLEARED AND NON CLEARED DEALS
In pursuance of
Regulation 3.3 of the NSCCL Capital Market Regulations deals admitted on the CM
clearing segment shall be distinguished as under:
1.1 Cleared Deals
Cleared Deals means the following deals
executed on the Capital Market Segment of the NSE:
1.2 Non Cleared Deals
Non Cleared Deals are deals other than cleared
deals which are executed on the Capital Market Segment of the NSE and include
the following:
Item 2
BASIS FOR CLEARING AND SETTLEMENT OF DEALS AND
SETTLEMENT OBLIGATIONS
In pursuance of
Regulations 4.3 and 4.4 of the NSCCL Capital Market Regulations the basis for
clearing and settlement of deals and settlement obligations is specified as
under:
Trading
and settlement periods shall be specified by the relevant authority from time
to time. Currently all settlements on
a T+2 day rolling basis, in accordance with SEBI Circular Ref. No. D&CC/FITTC/CIR-20/2003 dated
2.1
Normal Market deals
Deals executed in the
normal market in equity shares, warrants, dividends, bonds etc. and including transactions in Trade for
Trade, Inter-institutional and Block deal transactions.
2.1.1.Regular normal market deals
Transactions shall be executed in series ‘EQ’ and settlement type ‘N’. Settlement can be only in
dematerialised mode and on a net obligation basis. Settlement Guarantee shall
be provided
2.1.2 Trade for Trade
-Surveillance segment (TFT-S) Deals
As a measure
of risk containment, the relevant authority may shift from time to time certain
securities from series ‘EQ’ to series ‘BE’ - Trade for Trade Surveillance Segment (TFTS)
Transactions in this segment shall be settled under settlement type ‘W’.
Transactions shall be cleared and
settled on a trade for trade basis and there shall be no netting of
transactions. Settlement Guarantee shall be provided. Settlement shall be in
dematerialised mode only.
2.1.3 Inter-Institutional Market (IL) Deals
Inter-Institutional
Deals executed on
behalf of institutional investors shall be cleared and settled on a
net obligations basis within the sub-segment. Settlement of all transactions shall compulsorily be
done in dematerialised mode only . All trades shall be
settled under settlement type ‘N’ and series ‘IL’. Settlement Guarantee shall
be provided.
2.1.3.1 Eligible clients for IL deals
a) Only FIIs shall be permitted
to place sell orders.
b) Buy orders can be placed
by FIIs, DFIs, Banks, Mutual Funds, Insurance Companies, Pension Funds and such
other institutions as may be approved from time to time.
c)
Where RBI has stipulated collective limits for FIIs, NRIs, PIOs etc in
certain securities, these entities shall be permitted to place orders on both
buy and sell sides.
2.1.4 Block deals
Block Deals shall be executed in a special window and
shall be cleared and settled on a net obligations basis within the sub-segment.
All trades shall be settled under settlement type ‘N’ and series ‘BL’. Settlement of all transactions shall
compulsorily be done in dematerialised mode only. Settlement Guarantee shall be
provided.
2.1.5 Trade for trade
(TT) market deals
TT Market deals shall be under series ‘BT’ and
settlement type ‘Z’. Deals shall be settled on a trade for trade basis directly
between the parties to the transaction and reported to the Clearing
Corporation. Details for reporting are as given in Item 3. Transactions shall
be settled on a gross basis and settlement obligations shall arise out of every
deal. Transactions may be settled in dematerialised form or in physical form.
There shall be no settlement guarantee for TT transactions.
2.2 Auction market deals
Auction
Market deals shall be cleared and settled on a trade for trade basis under
settlement type ‘A’. Auction Market
deals shall be settled on a gross obligations basis. Settlement of all transactions shall compulsorily be done in dematerialised
mode and settlement guarantee shall be provided.
2.3 Limited Physical Market Deals
Limited Physical (LP) Market Deals shall be
settled on a trade for trade basis and settlement obligations shall arise out
of every deal. Deals shall be in series ‘BT’ and settlement type ‘O’.
Deliveries shall be only in physical form
2.4 Retail Debt Market
(RDM)
RDM deals shall be in series ‘GC’ and
settlement type ‘D’. Deals shall be settled on a net obligation basis and
settlement guarantee shall be provided.
Item 3
PROCEDURE FOR
SETTLEMENT OF NON CLEARED DEALS
In pursuance of
Regulation 5.1 to 5.7 of the NSCCL Capital Market Regulations the procedure for
settlement of non cleared deals is specified as under:
3.1 Procedure for Settlement of TT Market Deals
in the Capital Market segment
3.1.1
Settlement Obligations for TT Market deals have to be settled within 2
working days (T + 2 day basis) from the date of deal directly between the
buying and selling clearing members.
3.1.2
The exchange of securities and funds has to take place directly between
the buying and selling clearing members
3.1.3
The selling clearing member is required to render delivery of securities
to the office of the buying clearing member in exchange for funds which may be
paid by means of Cheque/Demand Draft/Pay-order by the buying clearing member or
by such other means which enable the selling clearing member to realise the
funds on the same day as the exchange of securities.
3.1.4 Settlement details must be reported
by Custodian and/or TM clearing members to the Clearing Corporation in the
formats prescribed as Form No: NSEF 07A or 07B respectively within 24 hours of
the settlement.
3.1.5 The
delivery of securities in settlement of TT Market deals can be the following
units
in marketable lot, or
in certificates of denomination of 1000
shares, or
certificate of the denomination of the traded
quantity.
3.1.6 The choice of deciding on the
denomination of certificates will rest with the delivering clearing member.
3.1.6.1 TM Clearing members will receive a
report of Settlement Obligations for TT Market deals at the end of the day.
3.1.6.2 Custodian Clearing Members will
receive a report of Settlement Obligations for the TT Market deals executed on
behalf of their clients at the end of the day.
3.1.6.3 Custodian Clearing Members are
required to confirm TT Market deals executed on behalf of their clients for
settlement purpose within the settlement periods specified by the relevant
authority from time to time. In case the custodian clearing member does not
confirm the deal, the responsibility to settle the deal will shift to the TM
Clearing Member who executed the deal.
3.2 Non-settlement
of TT trades
3.2.1 In case a member expresses
inability to settle the trade either by paying funds or delivering securities,
then the trade will be deemed closed-out at the highest price prevailing in the
NSE in Normal Market from the trading day till the date of settlement or 20 % above the official closing price in the Normal Market
on the date of settlement of such trade, whichever is higher.
3.2.2 In
case of non rectification/replacement of any bad delivery, the trade will be
deemed closed-out at the highest price prevailing in the NSE in Normal Market
from the trading day till the date of settlement or 20%
above the official closing price in Normal Market on the date of
settlement of such trade, whichever is higher.
3.2.3 The defaulting member shall pay the difference
between the settlement prices and close out price within 5 working days from
the date of settlement to the counterparty failing which the amount of
difference shall be debited by Clearing Corporation to the account of the
defaulting member. On recovery of the said amount, the credit thereof shall be
given to the receiving member.
3.2.4 If
the defaulting party does not pay the difference, the aggrieved party can refer
the matter to the clearing corporation for suitable actions.
3.2.5 The
defaulting party shall further pay a penal charge of 0.5 % of the traded value
to Clearing Corporation. The penal charges shall be debited to the clearing
accounts of the members and will be transferred to the Settlement Guarantee
Fund.
3.3 Cancellation
of Trades
In case a deal executed in TT segment is
cancelled by a Clearing Member, a penal charge of Rs.1000 for each cancellation
of a trade shall be levied. If a
clearing member is buying as well as selling member, Rs.2000 shall be collected
as charge for cancellation of Trade. The
cancellation charges shall be levied without prejudice to any disciplinary
action including referring the matter
to Disciplinary Action Committee.
3.4
Failure
to report settlement of TT trades
Where a member fails to report settlement of
the TT trades within 24 hours of the settlement date, a processing fee of Rs.
500 /- per trade per day subject to maximum of 2.50 times the value of the
trade for each side with a ceiling Rs. 5000/- shall
be levied for late reporting of a trade on such a member even though the trades
are settled by the settlement date.
3.5
Failure to settle TT trades on the settlement date
3.5.1 Members shall seek prior approval
of the Clearing Corporation to grant extension of the settlement date, if due
to unavoidable circumstances they would be not able to settle the trades by the
settlement date. The relevant authority may, if satisfied that such
circumstances exist in its absolute discretion, approve any such extension of
settlement date.
3.5.2 Where a member fails to obtain
prior approval from Clearing Corporation for extension of the settlement date
of the TT trades, a processing fee of Rs. 500 /- per trade per day subject to
maximum of 2.50 times the value of the trade for each side with a ceiling Rs.
10000/- shall be levied for late settlement of a trade.
3.5.3 Where a member establishes to the
satisfaction of the relevant authority that the failure to settle is on account
of non-payment of funds or non-delivery of securities by the counter-party
member and that he has fulfilled his part of obligation in full and in time,
the relevant authority in such cases may not impose the penal charges on such a
member.
Item 4
CLEARING DAYS AND SCHEDULED TIME
In pursuance of
Regulation 6.2 of the NSCCL Capital Market Regulations it is hereby notified
that the time schedule to be observed with regards to Clearing House,
Depository Clearing System and Clearing Bank is specified as under:
4.1 Settlement
in Physical Deliveries through Clearing House
Delivering members shall deliver all documents
to the Clearing House during its regular business hours from
4.2 Settlement in Depository Clearing System
The delivering member shall complete delivery
instructions for transfer of securities to CM Clearing Pool Account on
settlement day in accordance with SEBI Circular Ref No. SMD/POLICY/Cir-6/03
dated
The depositories shall
credit the receiving members' pool account / clients beneficiary account in
accordance with the pay-out instructions received electronically from Clearing
Corporation on the settlement day.
4.3 Clearing
Bank
The paying member shall have clear funds in his
settlement account on settlement day, in accordance with SEBI Circular Ref No.
SMD/POLICY/Cir-6/03 dated
The Clearing Bank shall credit the receiving
members' settlement account in accordance with the pay-out instructions
received electronically from the Clearing Corporation on the settlement day.
Item 5
MAINTENANCE OF DEPOSITORY ACCOUNT
In pursuance of
Regulation 14 of the Capital Market Regulations, the provision relating to CM
clearing member's clearing account with a Depository Participant of the
specified depository is hereby specified as under:
5.1 Depository Account
The members shall operate a clearing account
with a Depository Participant of the depositories, National Securities
Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) for the
purpose of settlement of depository deals or for any other purpose as the
relevant authority may specify from time to time.
5.1 Procedure for
shifting of CDSL pool account
In case a clearing member wishes to
shift the CDSL pool account from one depository participant to another, then
the new pool account number shall be intimated to the Clearing Corporation as
per format specified in Annexure 5.1.
Item 6
PROCEDURE FOR PAY-IN /PAY-OUT OF FUNDS
In pursuance of
Regulation 13 of the Capital Market Regulations, the provision relating to
clearing bank appointed by the Clearing Corporation, are hereby specified as
under:
6.1 Funds pay-in and pay-out shall be through banks designated as
Clearing Banks by the Clearing Corporation. The list of banks currently
available for settlement is provided in Annexure
6.1.
6.2 Maintenance
and operation of clearing account
·
Every
clearing member shall maintain and operate a separate and distinct primary
clearing account for the capital market segment with any one of the designated
clearing banks at the designated branch of the bank, as given in Annexure 6.1. The primary clearing
account shall be used exclusively for clearing operations i.e., for settling
funds obligation, payment of margins, penal charges, etc as may be specified by
the Clearing Corporation from time to time.
·
Further,
every clearing member shall be able to maintain and operate additional clearing
accounts with the designated clearing banks exclusively for the purpose of
enhancement of collaterals in the form of cash. All the credits and debits
other than collateral enhancement specified by the member shall be routed
through the primary clearing account.
·
Maintenance
of a primary clearing account and one additional clearing account in capital
market segment shall not be chargeable. However, starting from second
additional clearing account onwards, a charge of Rs.5000 plus service tax shall
be levied for every additional clearing account activated for the clearing
member.
·
Clearing
members are required to send a Demand Draft, favoring National Securities
Clearing Corporation Ltd for the total amount of applicable charges plus
service tax, along with the request for activation of additional clearing
account.
·
Clearing
members shall irrevocably authorize the clearing banks to access their clearing
accounts for debiting and crediting their clearing accounts as per the
instructions of the Clearing Corporation, reporting of balances and other
information as may be required by the Clearing Corporation from time to time as
per the format given in Annexure 6.2 and
furnish to the Clearing Corporation an acknowledged copy of the same along with
the account particulars issued by the clearing banks.
·
Clearing
members can deposit funds into these accounts in any form and can withdraw
funds from these accounts only in self-name.
·
Clearing
members having funds obligation to pay shall have clear balance of requisite
funds in the clearing accounts on or before the stipulated funds pay-in day and
the stipulated time.
·
Clearing
members shall not seek to close or de-activate the clearing accounts without
the prior written consent of the Clearing Corporation
·
The
clearing banks shall debit/credit the clearing accounts of the clearing members
as per instructions received from the Clearing Corporation from time to time.
Any request from the clearing members for revoking the authorization furnished
by them shall not be considered by the clearing banks. The clearing banks shall
not close the clearing accounts or permit deactivation of the same without the
prior written consent of Clearing Corporation.
·
All
bank confirmations received from clearing banks on behalf of the members
towards margins, funds pay-in, EPI of funds, collateral enhancements etc. shall
be given effect only after receiving a written/electronic confirmation from
their respective clearing banks.
6.3 Procedure for change in primary clearing
banks
In case a clearing member wishes to
shift the primary clearing account from one designated clearing bank to
another, the following procedure shall be followed:
·
The
clearing member shall request the primary clearing bank in writing for issuing
a No Objection Certificate (NOC) for shifting of the primary clearing account.
·
The
clearing member shall request the Clearing Corporation in writing seeking its
permission for shifting of the primary clearing account and enclose the NOC
received from the existing primary clearing bank in this regard or where the
NOC is not received, furnish an acknowledged copy of the NOC request along with
a declaration to the effect that no response has been received from the
existing primary clearing bank in respect of the NOC request even after a
minimum waiting period of a fortnight.
·
The
Clearing Corporation would thereon issue a letter of introduction to the other
designated clearing bank
·
On
opening the clearing account with the other designated clearing bank, the
clearing member shall submit to the Clearing Corporation the documents relating
to the new primary clearing account and letter in the format as mentioned in Annexure 6.2.
·
The
Clearing Corporation shall thereon communicate the date from which the new primary
clearing account shall be operational. The clearing members are required to
intimate the Clearing Corporation whether they wish to continue the existing
primary clearing account as one of the additional clearing accounts or
discontinue the existing primary clearing account after the change in primary
clearing bank. In the event of the clearing members wishing to discontinue the
existing primary clearing account, the Clearing Corporation shall communicate the
date after which the existing primary clearing account may be closed by the
clearing member.
·
A
charge of Rs.5000 plus service tax shall be levied for every instance of change
in primary clearing account from one designated clearing bank to another.
Clearing members are required to send a Demand Draft, favoring National
Securities Clearing Corporation Ltd for the total amount of applicable charges
plus service tax, along with the request for change in primary clearing
account.
Item 7
PROCEDURE FOR PAY_IN AND PAY-OUT OF SECURITIES
7.1 Pay-in of securities
Pay-in shall be conducted on the scheduled
pay-in day, in accordance with the settlement calendar periodically issued by
the Clearing Corporation in this regard. Pay-in timings shall be fixed as
declared by SEBI (refer SEBI Circular Ref No MRD/DoP/SE/Dep/Cir-18/2005 dated
September 2, 2005 ) Members shall maintain settlement accounts at both depositories
viz NSDL and CDSL. Specific pay-in instructions have to be given in case of
pay-in through NSDL. For pay-in through CDSL the security balances need to be
available in the members pool account by the pay-in cut off time.
7.1.1 Auto
Delivery Out
For pay-in through NSDL a facility has been
provided to members wherein delivery-out instructions will be generated
automatically by the Clearing Corporation based on the net delivery obligations
of its Clearing Members. These instructions will be released on the T+1 day and
the securities in the Clearing Members’ pool accounts will be marked for
pay-in.
Clearing
members desirous of availing this facility shall send a letter in the format
provided at Annexure 7.1
The
features of this facility are intimated vide NSDL Circular No.
NSDL/PI/2000/1240 dated
7.1.2 Early pay-in of
securities
NSCCL provides a facility to Trading Clearing
Members to make early pay-in of securities through NSDL and CDSL. Details for
making early pay-in are provided in Item 11 under point no 11.11
7. 2 Pay-out
of Securities
Pay-out shall be conducted on the scheduled
payout day, in accordance with the settlement calendar issued periodically by
Clearing Corporation in this regard. Pay-out shall be effected by
Payout shall be to the member’s pool
account.
7.2.1 Direct pay-out to Beneficiary Account
A facility is provided to the members to
directly credit the pay-out to investor’s beneficiary account. Clearing members
shall provide a file to Clearing Corporation for effecting pay out to
investors' accounts for a particular settlement type and settlement number. Clearing
members have to mention the beneficial owner’s account number entitled to
receive the payout of securities. The direct payout of securities can be
credited to the client’s account regardless of the depository in which the
securities pay-in is received. Clearing members shall provide a file to Clearing
Corporation for effecting pay out to client’s accounts as detailed in Annexure 7.2
The clearing member can
provide own settlement account details if the clearing member intends to
receive full or part payout of securities, which is not identified for direct
client account payout, in the settlement account with specific depository. This
information can be provided in the same file. The clearing member shall provide
depository participant ID and depository participant client ID if the
settlement account is with NSDL or CM
Settlement account number if the settlement account is with CDSL.
7.3 Failure
to deliver
Failure of the seller to deliver securities
shall result in buy-in auction for the shares by Clearing Corporation as per
auction schedule declared periodically. Currently auction shall be conducted on
T+3 day and settled on T+4 day. The short delivering member shall not be
allowed to offer in the auction for the respective security. Auction shall not
be conducted in respect of those sub-segments where shortages are directly
closed-out and where the securities are under corporate actions.
The auction amount shall be charged to the
short delivering member. Failure to procure shares in auction shall be closed
out. Details for close out are provided in Item 9.
Pay-in
and payout for auction shall happen along with normal.
Item 8
VALUATION PRICE
In pursuance of
Regulations 7.15 and 9.3 of the Capital Market Regulations, valuation price for
bad deliveries and for failure to give or take delivery are hereby specified as
under:
8.1 Valuation Price for Bad Delivery
The valuation price for securities which
constitute bad deliveries, shall be the closing price of such securities, on
the trading day preceding the settlement day unless prescribed otherwise from
time to time by the relevant authority. For the purpose of this clause, the
closing price shall be the price as announced by the Specified Stock Exchange
and the day of valuation shall be the day as decided by the relevant authority
of the Clearing Corporation from time to time.
8.2 Valuation Price for failure to deliver
The
valuation price for securities which were not delivered on the settlement day
for securities, shall be the closing price of such securities, on the immediate
trading day preceding the pay-in day for the securities unless prescribed
otherwise from time to time by the relevant authority. For the purpose of this
clause, the closing price shall be the price as announced by the Specified
Stock Exchange and the day of valuation shall be the day as decided by the
relevant authority of the Clearing Corporation from time to time.
Item 9
CLOSING OUT
In pursuance of
Regulation 10 of the NSCCL Capital Market Regulations, deemed closing out
prices (‘squaring off’) is hereby specified as under:
9.1 Closing out where securities cannot be
bought-in
When the Clearing Corporation is satisfied that
securities cannot be bought in the settlement obligation in such security shall be deemed to be closed out at
the following price, or as declared from time to time.
9.2
Closing out in the case of failure
to give delivery
9.2.1
Closing out in the case of failure
to give delivery for
Any shortages in Normal Market that cannot be
bought in the Auction Market shall be closed out as specified by SEBI vide
Circ. Ref No. SMD/Policy/Cir-03/2002 dated January 30, 2002. Close out shall be
at the highest price prevailing in the NSE from the day of trading till the
auction day or 20% above the official closing price on the auction day,
whichever is higher.
9.2.2 Closing out in case of failure to give
delivery for ‘IL’ and ‘BL’ Market Deals
Any shortages in the ‘Inter Institutional’ – IL
segment and ‘Block trades’ – BL window shall be directly closed-out on the
settlement at the highest price prevailing in the Exchange from the day of
trading till the T+1 day or 20% above the official closing price on the T+1
day, whichever is higher, or as declared from time to time.
9.2.3 Closing out in
case of failure to give delivery for Trade-for-trade – Surveillance (TFT-S)
deals
Any shortages in TFT-S shall be directly
closed-out on the settlement at the highest price prevailing in the Exchange
from the day of trading till the T+1 day or 20% above the official closing
price on the T+1 day, whichever is higher, or as declared from time to time.
9.2.4 Closing out in
case of failure to give delivery in Auction Market
When the auction seller fails to deliver in
part or full on auction pay-in day, the deal shall be closed out at the highest
price prevailing in the NSE from the day on which the trade was originally
executed till the day of closing out or 20% over the official closing price on
the close out day whichever is higher and will be charged to the auction seller
unless otherwise specified.
9.3
Compulsory Close-out of securities under Corporate Action
‘No delivery’ is abolished in respect of all types of corporate actions
for securities traded in the compulsory dematerialised mode.
In case a company announces any corporate action for securities in
compulsory dematerialised mode, the Clearing Corporation shall announce an
ex-date and all cum-transactions which cannot be auctioned on cum basis shall
be compulsory closed out. All cases of short deliveries where the cum basis
auction pay out which would otherwise have been after the book closure / record
date shall be closed out as stipulated by SEBI vide Cicular Ref No:
SMD/Policy/Cir-08/2002
dated April 16,
2002. Accordingly, shortages shall be directly closed out at the highest price prevailing in the
NSE from the day of trading till the day of closing out or 10% above the
official closing price on the auction day, whichever is higher, or as declared
from time to time.
The no–delivery period shall continue to be applicable in case of
securities deliverable in physical form.
Members may kindly note that security in Limited Physical Market shall
be withdrawn from trading, ten days prior to book closure/record date and
re-enabled for trading ten days after the book closure/record date.
9.4
Closing out in the case of non
rectification/replacement
9.4.1
Closing out in the case of non
rectification/replacement for bad delivery
At the highest price prevailing in the NSE from
the day of trading till the day of the closing out or 20% above the official
closing price on the auction day, whichever is higher.
9.4.2 In the case of non rectification/replacement
for objection cases
In the case of non rectification / replacement
for objection cases at 20% above the official closing price on the auction day.
9.5
Rectified / Replaced bad deliveries
9.5.1 Rectified / replaced bad deliveries reported
as bad delivery (Rebad delivery)
Rectified / replaced shares reported as bad
delivery (Rebad delivery) shall be closed out at the highest price prevailing
in the NSE from the day on which the trade was originally executed till the day
of the closing out or 10% above the official closing price on the auction day
whichever is higher.
9.5.2 Company objection cases reported as bad
delivery
Rectified /replaced company objection reported
as bad delivery shall be closed out at 10% above the official closing price on
the auction day.
9.6 Close out price for deleted security
Security for which trading has been
discontinued on the Exchange (hereinafter referred to as deleted security), close
out shall be the last 26 weeks average trade price on the exchange with a close
out mark up of 20% as specified by SEBI vide Circ Ref. No SMD/POLICY/Cir-21/02
dated September 4, 2002.
9.6.1 Deleted security on account of payment of
additional call money
In the case of securities for which trading has
been discontinued on the Exchange on account of payment of additional call
money (hereinafter referred to as
deleted security), the security where the respective call money has been paid
(hereinafter referred to as new security)
will be considered to arrive at the
closing price.
Company objections received in the 'deleted
security' will be required to be reported in the new security symbol / series.
In case the 'new security' is not available for the reason of such security not
being introduced for trading on the
Exchange / trading being discontinued on the Exchange, company objections will
be required to be reported in the 'deleted security' and close out price will
be at the last 26 weeks average trade price on the exchange.
9.6.2 Deleted security on account of payment of
redemption:
In the case of securities for which trading has
been discontinued on the Exchange on account of redemption (hereinafter
referred to as deleted security), the security (with the new face value after
redemption) introduced for trading by the Exchange (hereinafter referred to as
new security) will be considered to arrive at the closing price.
Company objections received in the 'deleted
security' will be required to be reported in the new security symbol / series
and members will be entitled to claim redemption amount as corporate benefit.
In case the 'new security' is not available for
the reason of such security not being introduced for trading on the Exchange /
trading being discontinued on the Exchange on account of full redemption,
company objections will be required to be reported in the 'deleted security'
and the close out price will be at the last 26 weeks average trade price on the
exchange.
9.6.3 Deleted security on account of merger /
amalgamation / hive off / scheme of restructuring
In the case of securities for which trading has
been discontinued on the Exchange on account of merger / amalgamation/ scheme
of restructuring (hereinafter referred to as 'deleted security'), the security
with which the deleted security is
merged / amalgamated / hived off / restructured into (hereinafter referred to
as 'new security') will be considered to arrive at the closing price.
Closing price for such 'deleted security' will
be the official closing price of the new security on the auction day prevalent
on the Exchange.
In case where the price of the 'new security'
is not available for the reason of such
security not being traded on the Exchange, the close price for such deleted
security will be at the last 26 weeks average trade price on the exchange
In case, where more than one security
(hereinafter referred as 'additional securities') is being given by the company
in lieu of the 'deleted security', the claim of company objection lodged for
such 'deleted security' shall be settled as follows:
(i) if such 'additional securities' are traded
on the Exchange, in the ratio in which they have been issued by the company.
(ii) If any one or more of these 'additional
securities' are not traded on any Stock Exchange, no claim shall arise, for
such security not traded.
(iii) If any one or more of these 'additional
securities' are not traded on the Exchange but traded on some other Stock
Exchanges, the relevant closing price of such securities shall be the closing
price on the regional exchange, to be notified by Clearing Corporation.
Members may claim such 'additional securities'
as corporate benefit.
In case of securities undergoing scheme of
amalgamation/ restructuring wherein the exchange ratio agreed to by the
companies are in fractions/decimals, claim of company objection shall be
settled as follows:
(a) The no. of shares (arrived at as per the
exchange ratio after excluding the fraction/decimal portion) of the new scrip
(b) The fractional part, to be claimed as
corporate benefit, which will be squared up as per the valuation given in Annexure 9.1 (rounded off to the
nearest rupee).
9.7 Close out price for bonds
9.7.1 In case of failure to give
delivery, non rectification/replacement of bad delivery, rectified/replaced bad
delivery subsequently reported as re-bad, auction non-delivery, and auction
delivery reported as bad delivery, closing out price will be the highest rate
prevailing on the Exchange from the first day of the relevant trading period
till the day of closing out or 5% over the official closing price on the
auction day, whichever is higher for bonds, debentures assigned a credit rating of triple A and above. For the other debentures
and the bonds without the triple A credit rating, the close out mark up of 20%
shall be applicable as specified in SEBI Circ. Ref. No.
SEBI/SMD/SE/Cir-26/2003/25/06dated
9.7.2 In case of non rectification /
replacement of company objection and rectified/replaced company objections
reported as bad delivery, closing price will be 5% over the official closing
price on the auction day.
9.8 Compulsory
closing-out of company objections reported against Suspended Members and
Surrendering Members
9.8.1 Suspended Members and Surrendering
Members shall be allowed to replace the company objection reported against them
only in the dematerialised form and not in the physical form.
9.8.2 The non-rectified/replaced shares
shall be compulsorily closed out at the 19th day closing price without any
mark-up.
The 'Suspended Members/Surrendering Members'
shall be intimated by the Exchange/Clearing Corporation from time to time.
9.9 In the case of an auction bad delivery
An auction delivery reported as bad delivery
shall be closed out at the highest price prevailing in the NSE from the day on
which the trade was originally executed till the day of closing out or 10% over
the official closing price on the close out day, whichever is higher and will
be charged to the auction seller unless otherwise specified.
9.10 Closing Out for LP Deals
9.10.1 In
the case of failure to give delivery
At 20% over the actual trade price
9.10.2 In the case of non
rectification/replacement for bad delivery
At 10% over the actual trade price
9.10.3 In the case of non
rectification/replacement for objection cases
At 20% above the official closing price in
regular Market on the auction day.
9.11 Closing out in case
of RDM deals
In case of short deliveries, unsettled positions shall be closed out. The close out would be done at Zero Coupon Yield Curve (ZCYC) valuation for prices plus a 5% penalty factor. The buyer shall be eligible for the highest traded price from the trade date to the date of close out or closing price of the security on the close out date plus interest calculated at the rate of overnight FIMMDA-NSE MIBOR for the close out date whichever is higher and the balance shall be credited to the Investor Protection Fund.
Item 10
LIQUID ASSETS
A member may deposit liquid assets
in the form of cash, bank guarantees, fixed
deposit receipts and approved securities and any other form of collateral as
may be prescribed from time to time.
These liquid
assets are segregated as cash component and non-cash component. Cash component
shall mean cash, bank guarantees, fixed deposit receipts, units of money market
mutual fund and Gilt funds and any other form of collateral as may be
prescribed from time to time. Non-cash component shall mean all other forms of
collateral deposits like deposit of approved list of demat securities and units
of the other mutual funds and any other form of collateral as may be prescribed
from time to time.
The total liquid assets comprise of
the cash component and the non cash component. As per SEBI circular
MRD/DoP/SE/Cir-07/2005 dated
10.1 Liquid Net worth:
In pursuance of Rule 2.3 of Chapter IV of the
Rules of the Clearing Corporation, details of Security Deposit to be maintained
as Liquid Net worth are specified as under:
The Member is required to meet with
the liquid net worth requirements prescribed by the Clearing Corporation at all
points of time.
10.1.1 Security Deposit requirement for Members
As a part of the membership
requirement every member is required to maintain a security deposit of:
(a) Rs. 25.00 lakhs in the case of
Corporates
(b) Rs. 17.50 lakhs in the case of
Firms/Individuals
The same is to be maintained in any
one or combination of the following forms:
10.1.2 Non-fulfillment of Security
Deposit Requirements
Any failure on the part of a member
to meet with the deposit requirements as given in 10.1.1 at any point of time, will be treated as a violation of the Rules,
Bye-Laws and Regulations of the Clearing Corporation and the Clearing
Corporation may, within such time as it may deem fit, advise the Exchange to
withdraw any or all of the membership rights of such member including
withdrawal of trading facility, without any notice.
If the security deposit falls below the minimum
required level at any point of time, the clearing corporation may initiate
suitable action as given below or as prescribed by the relevant authority from
time to time.
In addition,
the outstanding positions of such member and/ or constituents, may be closed
out forthwith or any time thereafter by the Exchange, at the discretion of the
Clearing Corporation, to the extent possible, by placing at the Exchange, counter
orders in respect of the outstanding position of such member without any notice
to the member and/ or constituents, and such action shall be final and binding
on the member and/ or constituents. The Clearing Corporation may also initiate
such other risk containment measures as it deems fit with respect to the open
positions of the member and / or constituents.
The Clearing
Corporation may, in addition to the foregoing provisions, take additional
measures like, imposing penalties, collecting appropriate deposits, invoking
bank guarantees/ fixed deposit receipts, realising money by disposing off the
securities and exercising such other risk containment measures as it deems fit
and may further take such disciplinary action as it may deem fit and appropriate
in this regard.
10.2 Margin Deposits by the member
In pursuance of Byelaw 2 of Chapter VIII of the Byelaws and Regulation
3.10 of Chapter 3 of Regulations, the following requirements are prescribed in
respect of margin deposits to be provided by the members:
Members who
wish to provide any deposits at any point of time, over and above their minimum
deposit requirement as given in 10.1.1 above towards margin and/ or other
obligations, may do so in any one or combination of the following forms:
i)
Cash
ii)
Fixed
Deposit Receipts (FDRs) issued by approved banks, as given in Annexure 10.1, and
deposited with approved Custodians or with the Clearing Corporation. (Formats
of letters to be submitted are prescribed in Annexure 10.7).
iii)
Bank Guarantee in favour of National Securities Clearing Corporation
Ltd. from approved banks as specified in Annexure
10.1 as per the format specified in Annexure
10.4
iv)
Equity
shares of companies and units of mutual funds in demat form deposited with
approved Custodians (refer to Annexure
10.2). Only securities specified in the approved list of securities which
is revised on a monthly basis (refer Annexure
10.5) can be pledged. A deed of pledge is required to be executed with the
custodian in specified format. The format of Deed of pledge is prescribed in Annexure 10.8.
The Clearing Corporation may at its
discretion accept fixed deposit receipts, bank guarantees, or approved
securities or such other mode as may be approved and subject to such terms and
conditions as may be imposed from Clearing Corporation from time to time.
10.3 Guidelines
for Submission of Deposits
10.3.1 Cash
Members may submit deposit in the
form of cash by making the required amount available in their respective
clearing bank account and sending an authorization to the Clearing Corporation
for debiting the said amount from their clearing account. The same can be
provided through a web based facility called Collateral Interface for Members
(CIM) which enables the members to log in through internet. Members shall log
in through specific user-ids and passwords into CIM. To obtain a Login User ID,
members are required to send their request to the Clearing Corporation in the
format provided in Annexure 10.9.
The benefit of
such cash deposit requests shall be subject to bank confirmation from the
respective clearing bank. A member who has authorised the Clearing Corporation
to debit his clearing account as above shall ensure due performance of the
commitment. Non-fulfillment of such obligation will be treated as a violation
and/ or non-performance of obligations and shall attract consequences, penalty
and/ or penal charges as applicable to violations.
10.3.2 Fixed
Deposit Receipt
Members may furnish deposits in the
form of FDR as mentioned above, subject to inter-alia, the compliance of the
following:
1. The FDR should be issued either in
favour of: "Custodian Name” (as the case may be) - A/c MEMBER NAME"
in case to be deposited with approved custodians namely HDFC Bank Ltd., Stock
Holding Corporation of India Limited, ICICI Bank Ltd or "NSCCL A/c MEMBER
NAME" in case to be deposited with
the Clearing Corporation.
2. Members are required to issue a
letter to the approved custodian/ Clearing Corporation agreeing that the
approved custodian/ Clearing Corporation has an irrevocable authority to encash
the FDR and to withdraw the FDR amount (including accrued interest) at any
time, even prior to maturity of FDR without notice to the member, for
recovery/adjustment of NSCCL/NSEIL dues. The formats of the letter are given in
Annexure
10.3 and 10.7.
3. Members are required to submit a
letter from the bank issuing the FDR to the approved custodian/Clearing
Corporation in the formats given in Annexure 10.3 and 10.7.
4. The minimum value of FDR that may be
accepted shall be Rs.2 lakhs. The FDR should have validity for a minimum period
of 3 months in case of margin deposit and for a minimum period of 12 months in
case of security deposit.
5.
The FDR should be issued by any of the branches of approved banks and
should be payable in the cities of: Mumbai,
10.3.2.1 Shifting of FDR from F & O segment/Currency Derivatives
segment to Capital Market segment
Members who intend to release the
FDR provided as margin deposit in F&O segment / Currency Derivatives
segment and add the same as margin deposit in CM segment, are required to
submit a transfer request in F&O segment/ Currency Derivatives segment
through CIM and send a letter to the Clearing Corporation requesting for the
same. The format of the letter is specified in Annexure 10.10
10.3.2.2 Renewal of
Fixed Deposit Receipt
In case of renewal of FDRs, the members shall furnish the renewal
documents strictly in the prescribed format. The format of the letter to be
given by the member is given in Annexure
10.3 and 10.7. The format for
letter to be given by the Bank in case of renewal where there is change in FDR
number is given in Annexure 10.11a
and the format for letter to be given by the Bank in case of renewal where the
FDR number is not changed is given in Annexure
10.11b
In case the renewed FDR/ fresh FDR is not submitted and whereby the
member does not fulfill the security deposit requirements, action as provided
in 10.1.2 above shall be applicable.
10.3.3 Bank Guarantees
The acceptance of the bank guarantees by the clearing corporation shall
be subject to the bank-wise and member-wise limits as are stipulated from time
to time. The maximum value of bank guarantees that can be given from the
issuing bank per member is as provided below:
|
Net worth of the issuing bank * |
Applicable
total limit per
clearing member across all segments |
|
Rs. 100 crores <= NW <
Rs.200 crores |
Rs 5 Crore |
|
Rs. 200 crores <= NW <
Rs.500 crores |
Rs 10 Crore |
|
Rs. 500 crores <= NW <
Rs.1000 crores |
Rs 15 Crore |
|
Rs. 1000 crores <= NW
< Rs.2000 crores |
Rs 25 Crore |
|
Rs. 2000 crores <= NW
< Rs.3000 crores |
Rs 35 Crore |
|
>=3000 crores ** |
|
*In respect of bank guarantees
issued by the designated clearing banks (Annexure
6.1), the maximum value of bank guarantees that can be accepted from each
of these designated clearing banks shall be set at the next higher slab in
which they would have ordinarily been, compared with their net worth.
**Over Rs. 3000 crores, for each Rs.1000 crores of net
worth, an incremental limit of Rs.10 crores per member is allowed.
Based on the category of the member the above limits shall be subject to a maximum amount as mentioned below:
Rupees in Crores
|
Category of member |
Applicable total limit per clearing member across all segments |
|
Professional Clearing Members / Custodian Clearing Members |
200 |
|
Trading Cum Clearing Members in F&O segment |
100 |
|
Other categories of the members |
50 |
Members are advised to check their applicable limit
before getting their bank guarantees issued.
Additionally, at the time of deposit
of the bank guarantee, the member is required to ensure the following:
1. The bank guarantee is strictly as
per the formats prescribed by the clearing corporation. The formats of bank
guarantee are provided in Annexure 10.4.
2. A bank guarantee for security
deposit should be issued for a minimum period of 12 months with a specific
claim period of at least 3 months. However, where an issuing bank does not
provide for a specific claim period beyond the expiry date in the bank
guarantee, the members shall submit a bank guarantee for a minimum period of 15
months. The maturity period of such bank guarantee shall be reduced by 3
months, which would be considered as the claim period of the bank guarantee.
3. A bank guarantee for margin deposit
should have validity for a minimum period of 3 months. In case the issuing bank
does not provide for a specific claim period beyond the expiry date in the bank
guarantee, the maturity period of such bank guarantee shall be reduced by 7
days, which would be considered as the claim period of the bank guarantee.
4. While filling the details in a bank
guarantee, members shall ensure that:
a. No relevant portion is left blank
b. All handwritten corrections and
blanks are attested by the bank by affixing the bank seal / stamp duly
authorised
c. All irrelevant portions struck off
on the printed format should also be authenticated by the bank by affixing the
bank seal / stamp duly authorised.
d. Each page of the bank guarantee should
bear the bank guarantee number, issue date, stamp of the bank and should be
signed by at least two authorised signatories.
e. The member should also ensure that
the bank guarantee is free from any discrepancy before the same is submitted to
the Clearing Corporation.
f.
The
stamp paper should be issued in the name of the clearing member or the bank, no
third party stamp papers are permissible
g. The stamp paper should not be older
than 6 months from the executed date of the bank guarantee/ renewal.
In case the bank guarantee does not
strictly conform to the above-mentioned conditions, the same shall not be
accepted by the Clearing Corporation and benefit for the same shall be made
available only upon the bank guarantee being strictly in conformity with the prescribed
requirements.
10.3.3.1 Shifting of the Bank Guarantee from F&O segment / Currency
Derivatives segment to CM segment
Members, who intend to release the
BG provided as margin deposit in F&O segment/ Currency Derivatives and add
the same as margin deposit in CM segment, are required to submit a transfer
request in F&O segment/ Currency Derivatives Segment through CIM and submit
a letter to Clearing Corporation requesting for the same. The format of the
letter is specified in Annexure 10.12.
The member is further required to provide an amendment letter executed on a Rs.
100 Stamp paper from the respective bank. The format of the amendment letter is
specified in Annexure 10.13.
10.3.3.2 Renewal of Bank guarantee
In case of renewal of bank guarantees,
the members shall furnish the renewal document strictly in the prescribed
format before the date of expiry / maturity date of the bank guarantee. The
format is given at Annexure 10.14.
The members may also opt to give a fresh bank guarantee in favour of National
Securities Clearing Corporation Limited instead of renewing the expired bank
guarantees.
In case the renewed bank guarantees/
fresh bank guarantees are not submitted within the above mentioned periods
whereby the member does not fulfill the security deposit requirements, action
as provided in 10.1.2 above shall be applicable.
10.3.4 Reminder Letters through extranet
Reminder letters are downloaded on a
monthly basis through the extranet in respect of the Bank Guarantees and Fixed
deposits those are due for renewal in the following month.
The file naming convention for the
same is:
Path: FTP/<TM CODE>/REPORTS.
BG<BG
ID>_ABC/BC_<TM CODE>_DDMMYYYY.DAT
FD<FD
ID>_ABC/BC_<TM CODE>_DDMMYYYY.DAT
This is being provided as an
additional facility only and members are advised to submit the renewals of the
bank guarantees and fixed deposit receipts within the stipulated period to
avoid any action as provided in 10.1.2 above. The members shall be responsible
for the renewal of FDRs/ Bank guarantees expiring in the month and any
penalties, applicable in case of a security deposit FDR/ BG not getting
renewed/ substitution being provided.
10.3.5 Securities
10.3.5.1 Eligible securities
Members are permitted to deposit
shares of companies and units of mutual fund as communicated to the members
from time to time, in electronic form (‘demat securities’) in the designated
depository accounts maintained with the approved custodians (as mentioned in Annexure 10.2) in this regard. These
securities shall be pledged in favour of National Securities Clearing
Corporation Limited. The list of securities is available to the public at large
on the NSE-website
The valuation of the securities
shall be in accordance with the norms prescribed by the Clearing Corporation from
time to time. The securities shall be valued based on the closing price of the
security at NSE. The value of the securities shall be reduced by such haircut
as may be prescribed by the Clearing Corporation from time to time to arrive at
the collateral value of the security. The hair cut applicable shall be the VaR
margin rate applicable for the respective security. Only the value net of
applicable haircuts shall be considered as the value of the securities pledged.
Valuation of securities shall be done by the custodians at such periodic
intervals as may be specified by the Clearing Corporation from time to time.
The Clearing Corporation may revise
the list of approved securities and, the haircuts from time to time. Members
who have deposited securities which have been discontinued from the list of
approved securities, shall be required to take due care to replace such
securities.
10.3.5.2 Securities not approved for acceptance
The following securities shall not
be accepted as liquid assets:
a) Partly paid securities
b) Securities subject to any lock in
period, buy back scheme any charge or lien, encumbrance of any kind, or such
other limitations or title is questioned before the court or any regulatory
body.
c) Clearing members whose company
shares are acceptable as approved securities shall not be permitted to place
the same towards their liquid assets requirement.
10.3.5.3 Ownership of
Securities
The securities that may be deposited
shall be subject to the beneficial ownership of the member/ spouse, any of the
partners/ their spouses or any of the directors, in case of individual,
partnership or corporate members respectively, as the sole/ first joint holder,
provided no depositor of securities should be a minor as on the date of deposit
thereof.
In case of reconstitution /
restructuring or any change in the partners /directors of the member, as
applicable, a member shall be required to replace the securities belonging to
such outgoing partners /directors immediately and no benefit will be given by
the Clearing Corporation for such securities. The custodians shall be required
to exercise due care for such replacement of securities and reporting thereof
to the Clearing Corporation.
10.3.5.4 Opening of accounts:
Members are required to open a
separate depository account with the authorized Custodians for the purpose of
deposit of securities.
Members who are interested in availing of this facility may get in touch with
the Custodians (list as per Annexure
10.2) to ascertain the modalities with regard to deposit of securities.
10.3.5.5 Marking of pledge
Members may provide demat securities by marking a pledge of the
securities in favour of the Clearing Corporation. The member shall be required
to submit all such documents as may be required by the clearing corporation and
the authorised custodian from time to time including the Deed of Pledge as per
the specified format as mentioned in Annexure
10.6 and 10.8.
Members shall give the necessary
pledge instruction(s) to the Custodian for the securities to be pledged in
favour of the Clearing Corporation. Once the securities are accepted and duly
pledged by the Custodian, the Custodian shall inform the Clearing Corporation
the valuation of the securities after adjusting the relevant margin
percentages. On the basis of the Custodian’s advice, benefit towards securities
pledged shall be provided to the member.
10.4 Releases of Liquid Assets
Member may request the Clearing
Corporation to release deposits held by the Clearing Corporation. Such requests
may be considered by the Clearing Corporation if the Clearing Corporation
chooses not to exercise its lien pursuant to the Rules, Byelaws and Regulations and subject to availability after due
adjustments for the due fulfillment of all obligations and liabilities arising
out of or incidental to any contracts entered into by such member and
subject to the bye laws, rules and regulations of the Clearing Corporation or
anything done in pursuance thereof.
The web based facility of
Collaterals Interface for Members (CIM) is provided for submission of release
requests of collaterals. The members may select the desired available
collaterals for release. Release requests though CIM can also be placed using a
file upload facility. The format of file is prescribed in Annexure 10.15.
10.4.1 Collection of released collaterals submitted to NSCCL
The representative of the members coming to collect released FDR/ BG is required to carry an authorization letter.
The released
FDRs/ BGs can be collected on the next working day of the release.
Item 11
MARGINS
In
pursuance of Chapter VI(B) of the Bye Laws pertaining to Clearing and
Settlement of deals and Chapter VII of the Bye Laws pertaining to Margins, the
following are prescribed for members :
11.1
Overview:
SEBI
vide their circular SEBI/MRD/DoP/SE/Cir-07/2005 dated February 23, 2005,
SEBI/MRD/DoP/SE/Cir06/2008 dated March 19, 2008 and SEBI/MRD/DoP/SE/Cir-08/2009
dated July 27, 2009 has stipulated the framework of risk management in the
capital market segment.
The
core of the risk management system is the liquid assets deposited by members
with the Exchange/Clearing Corporation. These liquid assets shall cover the
following margin requirements:
a.
MTM
(Mark To Market) Losses
b.
VaR Margins
c.
Extreme Loss Margins
d.
Base Minimum Capital: Base Minimum Capital shall be
Rs.10 lakhs or such other amount as may be specified by the relevant authority
from time to time.
The
liquid assets of the member at all points of time shall be adequate to cover
all the above requirements. Member shall also maintain at all points of time
Interest Free Cash Deposit with NSEIL and Interest Free Cash Deposit and
Security Deposit with NSCCL at such amounts applicable to member at the time of
admission/ transfer/ up-gradation as continued admission condition. However the said amounts will be reckoned for the
purpose of ‘a to d’ above to the extent available.
The
base minimum capital shall be blocked from the interest free cash deposit
placed by the member with the Exchange/Clearing Corporation.
11.2
Liquid Assets:
The total
liquid assets comprise of the cash equivalents and other liquid assets. Details
as regard the type of collaterals, mode of acceptance and release and the
relevant formats are discussed in details in Item- 10 pertaining to Liquid
Assets.
11.3 Categorization of
securities
11.3.1 Liquidity
Categorization of Securities:
The securities shall be classified into three
groups based on their liquidity:
|
Group |
Trading
Frequency (over the previous six months – see Note A) |
Impact Cost (over the previous six months – see Note
A) |
|
Liquid Securities (Group I) |
At least 80% of the days |
Less than or equal to 1% |
|
Less Liquid Securities (Group II) |
At least 80% of the days |
More than 1% |
|
Illiquid Securities (Group III) |
Less than 80% of the days |
Not Applicable |
Notes:
A.
For
securities that have been listed for less than six months, the trading
frequency and the impact cost shall be computed using the entire trading
history of the security.
11.3.2 Monthly Review
The trading frequency and impact cost shall be
calculated on the 15th of each month on a rolling basis considering
the previous six months for impact cost and previous six months for trading
frequency. On the basis of the trading frequency and impact cost so calculated,
the securities shall move from one group to another group from the first of the
next month.
11.3.3 Categorisation of newly listed securities
For the first month and till the time of
monthly review as mentioned above, a newly listed security shall be categorised
in that Group where the market capitalization of the newly listed security
exceeds or equals the market capitalization of 80% of the securities in that
particular group. Subsequently, after one month, whenever the next monthly
review is carried out, the actual trading frequency and impact cost of the
security shall be computed, to determine the liquidity categorization of the
security.
In case any corporate action results in a
change in ISIN, then the securities bearing the new ISIN shall be treated as
newly listed security for group categorization.
11.3.4 Calculation of mean impact cost
The mean impact cost shall be calculated in the
following manner:
a.
Impact cost
shall be calculated by taking four snapshots in a day from the order book in
the past six months. These four snapshots shall be randomly chosen from within
four fixed ten-minutes windows spread through the day.
b.
The impact
cost shall be the percentage price movement caused by an order size of Rs.1
Lakh from the average of the best bid and offer price in the order book snapshot.
The impact cost shall be calculated for both, the buy and the sell side in each
order book snapshot.
c.
The
methodology for computation of the impact cost adopted shall be disseminated on
the website of the exchange.
The category for each security and applicable period
is disseminated to members on the extranet server and to the public at large
through the NSE – website. Format for the category file of securities is given
in Annexure 11.1
11.4 Mark to Market Losses:
Mark to market losses shall be collected in the following manner:
a.
Mark to market loss shall be calculated by marking
each transaction in security to the closing price of the security at the end of
trading. In case the security has not been traded on a particular day, the
latest available closing price at NSE shall be considered as the closing
price. In case the net outstanding
position in any security is nil, the difference between the buy and sell values
shall be considered as notional loss for the purpose of calculating the mark to
market margin payable.
b.
The mark to market margin
(MTM) shall be collected from the member before the start of the trading of the
next day.
c.
The MTM margin shall be
collected/adjusted from/against the cash/cash equivalent component of the
liquid net worth deposited with the Exchange.
d.
The MTM margin shall be
collected on the gross open position of the member. The gross open position for
this purpose would mean the gross of all net positions across all the clients
of a member including its proprietary position. For this purpose, the position
of a client would be netted across its various securities and the positions of
all the clients of a broker would be grossed.
e.
There would be no netting
off of the positions and setoff against MTM profits across two rolling
settlements i.e. T day and T-1 day. However, for computation of MTM
profits/losses for the day, netting or setoff against MTM profits would be
permitted.
f.
The methodology for
computation of MTM margin is also illustrated by way of an example which is placed
in Annexure 11.2
g.
In case of security in TFTS
each trade shall be marked to market based on the closing price of that
security.
h.
The MTM margin so
collected shall be released on completion of pay-in of the settlement.
i.
The details of all
margins (VAR, extreme loss margin and mark to market) as at end of each day
will be downloaded to members in their respective Extranet directory. The
format of the report has been provided in Annexure
11.3
11.5 VaR Margin:
11.5.1Computation of VaR Margin
VaR Margin is a margin intended to cover the
largest loss that can be encountered on 99% of the days (99% Value at Risk).
For liquid securities, the margin covers one-day losses while for illiquid
securities; it covers three-day losses so as to allow the Clearing Corporation
to liquidate the position over three days. This leads to a scaling factor of
square root of three for illiquid securities.
For
liquid securities, the VaR margins are based only on the volatility of the
security while for other securities, the volatility of the market index is also
used in the computation.
Computation
of the VaR margin requires the following definitions:
·
Security sigma means the
volatility of the security computed as at the end of the previous trading day.
The computation uses the exponentially weighted moving average method applied
to daily returns in the same manner as in the derivatives market.
·
Security VaR means higher
of 7.5% or 3.5 security sigma.
·
Index sigma means the
daily volatility of the market index (S&P CNX Nifty or BSE Sensex) computed
as at the end of the previous trading day. The computation uses the
exponentially weighted moving average method applied to daily returns in the
same manner as in the derivatives market.
·
Index VaR means higher
of 5% or 3 index sigma. The higher of the Sensex VaR or Nifty VaR would be used
for this purpose.
The VaR Margins are specified as follows for
different groups of securities:
|
Liquidity Categorization |
One-Day VaR |
Scaling factor for illiquidity |
VaR Margin |
|
Liquid Securities (Group I) |
Security VaR |
1.00 |
Security VaR |
|
Less Liquid Securities (Group II) |
Higher of Security VaR and three times Index
VaR |
1.73 (square root of 3.00) |
Higher of 1.73 times Security VaR and 5.20
times Index VaR |
|
Illiquid Securities (Group III) |
Five times Index VaR |
1.73 (square root of 3.00) |
8.66 times Index VaR |
11.5.2 Collection of VaR Margin:
a. The VaR margin shall be collected on an upfront
basis by adjusting against the total liquid assets of the member at the time of
trade.
b. The VaR margin shall be collected on the gross
open position of the member. The gross open position for this purpose would
mean the gross of all net positions across all the clients of a member
including its proprietary position. Example for computation of gross positions
of a member is provided in Annexure 11.4
c.
For this
purpose, there would be no netting of positions across different settlements.
g.
The VaR
margin so collected shall be released on completion of pay-in of the settlement.
11.6
Extreme Loss Margin:
The
term Extreme Loss Margin replaces the terms “exposure limits” and “second line
of defence” that have been used hitherto. It covers the expected loss in
situations that go beyond those envisaged in the 99% value at risk estimates
used in the VaR margin.
a.
The Extreme Loss Margin for any security shall
be higher of:
·
5 % or
·
1.5
times the standard deviation of daily logarithmic returns of the security price
in the last six months. This
computation shall be done at the end of each month by taking the price data on
a rolling basis for the past six months and the resulting value shall be
applicable for the next month.
b.
The Extreme Loss Margin shall be collected/
adjusted against the total liquid assets of the member on a real time basis.
c.
The Extreme Loss Margin shall be collected on the gross open position of the
member. The gross open position for this purpose would mean the gross of all
net positions across all the clients of a member including its proprietary
position. Example for computation of gross positions of a member is provided in
Annexure 11.4
d.
For this
purpose, there would be no netting off of positions across different
settlements.
e.
The Extreme
Loss Margin collected shall be
released on completion of pay-in of the settlement
f.
The details
of all margins (VAR, extreme loss margin and mark to market) as at end of each
day will be downloaded to members in their respective extranet directory. The
format of the report has been provided in Annexure
11.3
11.7 Margins for securities in Trade for Trade-Surveillance market
(TFTS)
Upfront
margin rates (VaR Margin + Extreme Loss Margin) applicable for all securities
in the TFTS shall be 100%.
11.8 Capping of margins
In
case of a buy transaction, the VaR margins, Extreme loss margins and mark to
market losses together shall not exceed the purchase value of the transaction. In
case of a sale transaction, the VaR margins and Extreme loss margins together
shall not exceed the sale value of the transaction and mark to market losses
shall also be levied.
11.9 Exemption from Margins
a.
In cases
where early pay-in of securities is made prior to the securities pay-in, such positions for which early pay-in
(EPI) of securities is made shall be exempt from margins. The
EPI would be allocated to clients having net deliverable position, on a random
basis. However, members shall ensure to pass on appropriate early pay-in
benefit of margin to the relevant clients. Additionally, members can specify the clients to
whom the early pay-in may be allocated. The detailed provision of providing
client level early pay-in of securities has been mentioned in Item 11.12
b.
In cases
where early pay-in of funds is made such
positions for which early pay-in (EPI) of funds is made shall be exempt from
margins. The procedure for providing early pay-in of funds has been detailed in
Item 11.13
11.10 Institutional
Transactions
·
Institutional transaction means transactions
done on behalf of institutional investors. Institutional investors shall include
1. Foreign Institutional Investors registered with
SEBI. (FII)
2. Mutual Funds registered with SEBI. (MF)
3. Public Financial Institutions as defined under
Section 4A of the Companies Act, 1956. (DFI)
4. Banks, i.e., a banking company as defined under
Section 5(1)(c) of the Banking Regulations Act, 1949. (BNK)
5. Insurance companies registered with IRDA. (INS)
6. Pension Funds regulated by Pension Fund Regulatory and
Development Authority (PFRDA). (PNF)
·
Institutional transactions shall be identified
by the use of the participant code at the time of order entry.
·
Transactions entered into on behalf of
custodial participants i.e. carrying custodial participant code shall be
considered as institutional deals unless not confirmed by the respective
custodians in which case the transactions shall be considered as a normal
transactions and all applicable margins shall be levied on the members
·
Members may also enter “INST” code in the
custodial participant code at the time of entering orders on behalf of the
institutional clients
·
Members are required to allocate the INST
trades only to the above categories
·
Reporting and other procedures regarding
Institutional transactions, including allocation of INST trades is provided
in Item 25 ( 25.3.4)
·
As specified by SEBI vide Circ. Ref No.
MRD/DoP/SE/Cir- 06 /2008,
·
In respect of institutional transactions
confirmed by the custodians the margins shall be levied on the custodians
·
In respect of institutional transactions
rejected/not accepted by the custodians the margins shall be levied on the
members who have executed the transactions
·
The margins shall be computed and levied at a
client (Custodial Participant code) level in respect of institutional
transactions and collected from the custodians/members
11.11 Retail Professional Clearing Member:
In
case of transactions which are to be settled by Retail Professional Clearing
Members (PCM), all the trades with PCM code shall be included in the trading
member’s positions till the same are confirmed by the PCM. Margins shall be
collected from respective trading members until confirmation of trades by PCM.
On
confirmation of trades by PCM, such trades will be reduced from the positions
of trading member and included in the positions of PCM. The PCM shall then be
liable to pay margins on the same.
11.12
Release of margins:
All margins collected for a
settlement for a member/custodian shall be released on their individual
completion of full obligations of funds and securities by the respective
member/custodians after crystallization of the final obligations on T+1 day. Further,
members are provided a facility to provide confirmation from their clearing
banks towards their funds pay-in obligations on settlement day before
prescribed pay-in time. The procedure for the same is detailed in point 11.15.
11.13 Early Pay-in of
Securities for Margin Exemption
As stated in point 11.9 above, in
cases where early pay-in of securities is made, such
positions for which early pay-in (EPI) of securities is made are exempt from
margins. The
EPI is allocated to clients having net deliverable position, on a random basis.
However, members are required to ensure to pass on appropriate early pay-in
benefit of margin to the relevant clients.
11.13.1. Procedure for
making early pay-in of shares
Members can make the early pay-in of securities
through either of the depositories viz NSDL and CDSL.
In NSDL, members shall deliver the securities to their
CM Pool Account and execute irreversible delivery out instructions through
their Depository Participant, for the particular settlement.
In CDSL, members have to open separate early pay-in
account with CDSL through NSCCL. Members shall be required to send a request
for opening an early pay-in account to NSCCL in the format specified in Annexure 11.6
Members are requested to
contact their respective DP’s for details on procedure to be followed for doing
early pay-in at the depository.
In addition, the following facility is being provided
to all members making early pay-in of securities.
Members shall provide
the details of the clients to whom early pay-in benefit is to be provided
through a file upload. Members can upload of client details file during the day
through “Collateral Interface for Members (CIM)”. Members shall receive return
file providing details of successful and rejected records on the extranet
server. Members can modify the client and quantity details by uploading an
incremental file. The procedure of providing client details for early pay-in of
securities to Clearing Corporation including the file formats have been
provided in Annexure 11.7
11.14 Early Pay-in
of Funds for Margin Exemption
As stated in point 11.9 above, in
cases where early pay-in of funds is made, such
positions for which early pay-in (EPI) of funds is made are exempt from
margins. The procedure for making early pay-in of funds shall be as under:
5.
Member/custodian shall be allowed to change the amount allocated to a
client. If member/custodian wants to change the amount of early pay-in of funds
once allocated to a client, the member/custodian shall provide the full details
of all clients with the revised amount in the next file. With the submission of
the revised full file, the file submitted earlier would be ignored and not considered
for allocation.
6.
Member/custodian shall be allowed to provide additional early pay-in of
funds till the end of T+1 day. The member/custodian shall ensure that the file
for additional early pay-in of funds is a full file and not an incremental
file. Members shall mention the cumulative amount for those clients to whom
early pay-in needs to be allocated. With the submission of the revised full
file, the file submitted earlier would be ignored and not considered for
allocation
11.15 Procedure for making full pay-in of funds on Settlement day
As
stated in point 11.12 above members are provided a facility to provide confirmation
from their clearing banks towards their funds pay-in obligations on settlement
day before prescribed pay-in time. The procedure for the same is as given
below:
11.16 Shortfall of Margins
In case of any shortfall in margin:
·
The members shall
not be permitted to trade with immediate effect.
·
Penalty for violation on account of margin violation be levied on a
monthly basis based on slabs mentioned below :-
|
Instances of Disablement |
Penalty to be levied |
|
1st
instance |
0.07% per day |
|
2nd to 5th instance of
disablement |
0.07% per day
+Rs.5000/- per instance from 2nd to 5th instance |
|
6th to 10th
instance of disablement |
0.07% per day+ Rs. 20000 ( for 2nd to 5th
instance) +Rs.10000/- per instance
from 6th to 10th
instance |
|
11th instance onwards |
0.07% per day +Rs. 70,000/- (for 2nd to
10th instance) +Rs.10000/- per instance from 11th
instance onwards. Additionally, the member will be referred to the
Disciplinary Action Committee for suitable action |
Instances
as mentioned above shall refer to all disablements during market hours in a
calendar month. The penal charge of 0.07% per day shall be applicable on all
disablements due to margin violation anytime during the day.
.
11.17 Effect of failure to pay margins
Non-payment of either the whole or
part of the margin amount due will be treated as a violation of the Bye Laws of
the Clearing Corporation and will attract penal action. Without prejudice to
the foregoing, the Clearing Corporation may, within such time as it may deem
fit, advice the Exchange to withdraw any or all of the membership rights of
member including the withdrawal of trading facilities without any notice.
In the event of
withdrawal of trading facilities, the outstanding positions of the member may
be closed out forthwith or any time thereafter by the Exchange, at the
discretion of Clearing Corporation, to the extent possible, by placing at the
Exchange counter orders in respect of the outstanding position of the member
without any notice to the member, and such action shall be final and binding on
the member
11.18 Maintaining Capital Cushion
As per SEBI directive
the Exchange/Clearing Corporation has build an administrative mechanism to
encourage members to hold capital cushions while operating
The following
methodology has been adopted by the
Clearing Corporation to monitor members who have high capital utilisations
Letter for partial release -
C_CPC_PRL_<MEMCODE>_DDMMYYYY.TXT
Letter for Full release -
C_CPC_FRL_<MEMCODE>_DDMMYYYY.TXT
Letter for Additional capital
cushion - C_CPC_REQ_<MEMCODE>_DDMMYYYY.TXT
· The provisional amount of
additional capital to be provided along with the number of days when the member
has crossed 90% of margin utilistion shall be intimated to the member on a
daily basis vide a report in the extranet directory. The report shall be
available to members in the extranet directory /< TM ID>/REPORTS.
The naming convention of
the report shall be as under.
P_C_CPC_<MEMCODE>_DDMMYYYY.TXT
11.19 Margins from the Client:
Members should have a prudent system of risk
management to protect themselves from client default. Margins are likely to be
an important element of such a system. The same shall be well documented and be
made accessible to the clients and the Exchange/NSCCL. However, the quantum of
these margins and the form and mode of collection are left to the discretion of
the members.
11.20
Close out of Positions
An online facility to close – out
open positions of members, whose trading facility is withdrawn for any reason,
is provided. On disablement, trading members may be allowed to place close-out
orders through this facility. Only orders which result in reduction of existing
open positions at the client level shall be accepted through the close-out
facility in the normal market.
Apart from the above, members shall
not be allowed to:
·
Create any fresh position when in the close-out mode.
·
Place close out orders with custodial participant code.
·
Close out open positions of securities in trade for trade segment.
This facility does not dilute the
powers of the Clearing Corporation to close-out under its Bye-Laws, Regulations
and Circulars. Further the relevant authority may require the members to
reduce/close-out open positions to such levels and for such securities as
decided by the relevant authority from time to time.
11.21 Cross Margining
As per SEBI Circular Ref No: SEBI/DNPD/Cir- 44
/2008 dated December
02, 2008 cross
margin benefits shall be provided. The
salient features of the cross margining are as under:
The detailed procedure in respect of cross margining is as under:
11.21.1
Positions eligible for
cross-margin benefit
Cross margining shall be available across Cash and F&O segment and to all categories of market participants. The positions of clients in both the Cash and F&O segments to the extent they offset each other shall be considered for the purpose of cross margining as per the following priority
i. In order to extend the cross margin benefit as per (a) and (b) above, the basket of constituent stock futures/ stock positions shall be a complete replica of the index futures. NSCCL shall specify the number of units of the constituent stocks/ stock futures required in the basket to be considered as a complete replica of the index on the website of the exchange www.nseindia.com from time to time.
ii. The number of units shall be changed only in case of change in share capital of the constituent stock due to corporate action or issue of additional share capital or change in the constituents of the index.
iii. The positions in F&O segment for the stock futures and index futures shall be in the same expiry month to be eligible for cross margining benefit.
iv. The position in a security shall be considered only once for providing cross margining benefit. E.g. Positions in Stock Futures of security A used to set-off against index futures positions shall not be considered again if there is a off-setting positions in the security A in Cash segment.
v. Positions in option contracts shall not be considered for cross margining benefit.
vi.
An example of computation of offsetting positions
has been provided in Annexure 11.9
11.21.2 Entities/clients eligible for cross margining
The clearing member shall inform NSCCL the details of client to whom cross margining benefit is to be provided. The cross margining benefit shall be available only if clearing members provide the details of clients in such manner and within such time as specified by NSCCL from time to time.
11.21.2.1 Client/entity settling through same clearing member in both Cash and F&O segment
i. The clearing member shall ensure that the code allotted (code used while executing client trade) to client/entity in both Cash and F&O segment is same
ii.
The clearing member shall inform the details of
clients to whom cross margining benefit is to be provided through a file upload
facility provided in Collateral Interface for Members (CIM).
iii.
The details of file to be uploaded i.e file
naming convention, file format has been provided as Annexure 11.10
11.21.2.2 Client/entity
settling through different clearing member in Cash and F&O segment
i. In case a client settles in the Cash segment through a trading member / custodian and clears and settles through a different clearing member in F&O segment, then they shall be required to enter into necessary agreements.
ii. In case where the client/entity settles through Custodian in Cash segment, then the client/entity, custodian and the clearing member in F&O segment shall enter into a tri-partite agreement as per the format provided in Annexure 11.11
iii. In case where the client/entity clears and settles through a member in Cash segment, and a different clearing member in F&O segment, then the member in Cash segment and the clearing member in F&O segment shall enter into an agreement as per the format provided in Annexure 11.12 A. Further, the client/entity shall enter into an agreement with the member as per the format provided in Annexure 11.12 B.
iv. The clearing member in the F&O segment shall intimate to NSCCL the details of the client/entity in F&O segment alongwith letter from trading member/custodian giving details of client/entity in Cash segment who wish to avail cross margining benefit. The details to be provided have been specified in Annexure 11.13
11.21.3 Facility of maintaining two client accounts
As specified by SEBI, a client may maintain two accounts with their respective members to avail cross margin benefit only. The two accounts namely arbitrage account and a non-arbitrage account may be used for converting partially replicated portfolio into a fully replicated portfolio by taking opposite positions in two accounts. However, for the purpose of compliance and reporting requirements, the positions across both accounts shall be taken together and client shall continue to have unique client code.
11.21.4 Computation of cross margining benefit
i. The computation of cross margining benefit shall be done at client level on an online real time basis and provided to the trading member / clearing member / custodian, as the case may be, who, in turn, shall pass on the benefit to the respective client.
ii. For institutional investors the positions in Cash segment shall be considered only after confirmation by the custodian on T+1 basis and on confirmation by the clearing member in F&O segment.
iii. The positions in the Cash and F&O segment shall be considered for cross margining only till time the margins are levied on such positions.
iv. While reckoning the offsetting positions in the Cash segment, positions in respect of which margin benefit has been given on account of early pay-in of securities or funds shall not be considered.
v. The positions which are eligible for offset shall be subject to spread margins. The spread margins shall be 25% of the applicable upfront margins on the offsetting positions or such other amount as specified by NSCCL from time to time.
vi. The difference in the margins on the total portfolio and on the portfolio excluding off-setting positions considered for cross margining, less the spread margins shall be considered as cross margining benefit.
11.21.5 Provisions in respect of default
In the event of
default by a trading member / clearing member / custodian, as the case may be,
whose clients have availed cross margining benefit, NSCCL may:
i. Hold the positions in the cross margin account till expiry in its own name.
ii. Liquidate the positions / collateral in either segment and use the proceeds to meet the default obligation in the other segment.
iii. In addition to the foregoing provisions, take such other risk containment measures or disciplinary action as it may deem fit and appropriate in this regard.
11.21.6 Additional reports
i. All existing margin reports downloaded shall have details after providing cross margining benefit.
ii.
A report providing details of cross margin
benefit and off-setting positions at client level shall be provided to members
as per the format specified in Annexure 11.14
11.22 Pay-in of
funds/securities prior to scheduled pay-in day
The
relevant authority may require members to pay-in funds and securities prior to
the scheduled pay-in day for funds and securities. The relevant authority shall
determine from time to time, the members who shall be required to pay-in funds
and securities prior to the pay-in day. The relevant authority shall also
determine securities and funds which shall be required to be paid in and the
date by which such pay-in shall be made by the respective member.
The
member would be required to make early pay-in of funds and securities within
the time specified by the relevant authority.
11.23 Imposition of additional margins
The
relevant authority may require members to make payment of additional margins at
any time on such securities and at such rates as decided from time to time.
This will be in addition to the daily margins which are or may be imposed from
time to time.
11.24
Dissemination of Client level Position to Member:
The Client Level
Positions shall be disseminated to all members through the detail margin report
(MG02) which shall detail the client wise margin obligation.
These files will be made available
for the custodians in their respective sub-directories and on the extranet
server for the members. File format for Detail Margin Report (MG02) shall be as
per Annexure 11.3
Item 12
CHARGES AND PENALTIES
In pursuance of Regulations 7.15, 7.16, 9.3, 9.5, 9.8, 9.9A, 12.14 and
15 of the NSCCL Capital Market Regulations the applicable penalties are hereby
specified as under :
12.1. Funds Shortages :- Members failing to
fulfil their funds obligations (all markets including the valuation debit
raised on account of securities shortages) to Clearing Corporation shall be
subjected to the following penalty structure:-
|
S.
No |
Type
of Non-fulfilment |
Penalty
Charge % per day |
Action |
|
a) |
Value
Rs. 5 lakhs or more |
0.07 |
The
trading facility of the member shall be withdrawn immediately &
Securities pay out shall be withheld. |
|
b) |
Value
less than Rs. 5 lakhs |
0.07 |
If
in the last three months, the member is short over Rs. 2 lakhs on six or more
than six occasions, the trading facility of the member shall be withdrawn and
the securities pay out. Shall be withheld* |
*In case, the member is disabled on account of
(b) above, on making good the shortage amount, the member shall be permitted to
trade subject to its
providing a deposit equivalent to its
cumulative funds shortage as the 'funds shortage collateral'. Such deposit shall be kept with the Clearing Corporation for a period of
ten settlements and shall be released only if no further funds shortages are
reported for the member in next ten consecutive settlements. Members may
further note that there shall not be any margin benefit or any interest payment
on the amount so deposited as 'funds shortage collateral'. The amount may be
provided by way of cash, fixed deposit receipts, or bank guarantee, equivalent
to the cumulative funds shortage.
Recovery of funds due through liquidation
of securities withheld:
The funds defaulting member will be
allowed such time as may be permitted by the relevant authority depending upon
the facts of the case to bring in the amount in default. If funds are not
brought at any time by the defaulting member, the Clearing Corporation at its
discretion will proceed to close out securities in the normal / auction market.
If the member does not bring in the amount by the time permitted by the
relevant authority, and continues to default thereafter, the relevant authority
may proceed to declare him a defaulter.
12.2 Securities Shortages: - Members failing to fulfil their securities
deliverable obligations to Clearing Corporation shall be subjected to the
following penalty structure:-
|
S.
No |
Type
of Non-Fulfilment |
Penalty
Charge % per day |
Action |
|
(a) |
Security
Shortage |
0.05 |
The
valuation amount of the shortage will be considered as funds shortages where
shortage confirmation is not received from the bank and penal action as
prescribed for “Funds Shortage’' point “12.1” above shall be applicable |
12.3 Margin Shortages: Following penalty shall be levied on a
monthly basis in respect of margin violations
|
Instances of Disablement |
Penalty to be levied |
|
1st instance |
0.07% per day |
|
2nd to 5th instance of
disablement |
0.07% per day
+Rs.5000/- per instance from 2nd to 5th instance |
|
6th to 10th instance
of disablement |
0.07% per day+ Rs. 20000 ( for 2nd to 5th
instance) +Rs.10000/- per instance
from 6th to 10th
instance |
|
11th instance onwards |
0.07% per day +Rs. 70,000/- (for 2nd to
10th instance) +Rs.10000/- per instance from 11th
instance onwards. Additionally, the member will be referred to the
Disciplinary Action Committee for suitable action |
Instances as
mentioned above shall refer to all disablements during market hours in a
calendar month. The penal charge of 0.07% per day shall be applicable on all
disablements due to margin violation anytime during the day.
12.4. Security Deposit Shortages: Members not
fulfilling the security deposit requirement for continued membership shall be
subjected to the following penalty structure:-
|
S.
No |
Type
of Non-Fulfilment |
Penalty
Charge % per day |
Action |
|
(a) |
Value
Rs. 5 lakhs or more |
0.07 |
The trading facility of the member shall be
withdrawn |
|
(b) |
Value
less than Rs. 5 lakhs |
0.07 |
The
member shall be given a week’s time to replenish the shortfall in security
deposit failing which the trading facility of the member shall be withdrawn. |
12.5. Client Code Modification:
Penalty on
account of client code modifications shall be levied as under:
|
Percentage of modified client codes for non-institutional orders
beyond the first 5 orders to total non-institutional orders (matched) on a
daily basis |
Amount (in Rs) |
|
Less than or equal to 1% |
NIL |
|
Greater than 1% but less than or
equal to 5% |
500/- per day |
|
Greater than 5% but less than or
equal to 10% |
1000/- per day |
|
Greater than 10% |
10000/- per day |
Penalties
shall be imposed in respect of client code modifications in non-institutional
orders only.
12.6. Non-allocation / rejection of
institutional trades
Trades
marked as ‘INST’ and not allocated to valid CP codes and institutional trades
rejected / not-accepted by Custodians shall be subject to penalty at 0.10% of
the total value or Rs. 10,000 whichever is lower.
Penalties shall not be imposed on transactions where
custodial non-confirmation is for any of the following exceptional
circumstances as per SEBI Circ. Ref No MRD/DoP/SE/Cir- 17/2005 dated
·
Total connectivity failure to the exchange/STP. (Specific connectivity
issues of the custodians and members shall not be considered as valid
exceptions)
·
International holidays that may be decided upfront by the stock
exchanges in consultation with the custodians
·
Closing down of national/international centers due to calamities
12.7. Invalid IL trades:
·
Penalties shall be applicable as per the provisions of the normal
market.
· Additional penalties
shall be imposed if trades are executed by ineligible clients as under:
12.8. Failure to give Good Delivery:
A processing fee for
delayed good delivery or bad delivery will be levied on the value of securities
in bad/fake delivery. In case of bad deliveries rectified, delayed good delivery processing
charges will be at the rate of 0.09 % per day computed from the day on which
securities were originally due to be brought in up to the day on which the
securities are replaced/rectified.
In
case of bad deliveries not rectified, bad delivery processing charges will be @
0.09% per day computed from the day on which securities were originally due to
be brought in up to
(i)
the day on which the securities are brought in or
(ii)
till auction settlement is
completed or
(iii)
where auction is partially successful or not successful and the deal is deemed closed out or
(iv)
When the deal is squared off and the corresponding funds adjustments are
completed, whichever is later.
In
case of auction bad deliveries and rectified / replaced objection cases which
are reported as bad delivery, the penal interest will be 0.09% per day from the
rectification date till the date of closing out.
12.9. Incorrect claim for corporate benefits:-
|
Type of Default |
Charges |
|
Wrong
claims of dividend, bonus, interest etc. |
Rs.
100/- per claim |
|
Same set of shares reported twice under
objection |
10% of
value of shares reported under
objection subject to a minimum of Rs. 5,000/- per claim |
12.10. Incorrect undertaking:-
|
Incorrect undertaking on form 6-I |
10% of
the value of shares reported under objection, subject to a minimum of Rs.
5,000/- per claim. |
12.11. Late withdrawal of company
objection: Processing fee for late withdrawal at the rate of Rs. 2 per share
subject to a minimum of Rs.200/- shall be levied for all withdrawals where a
member has not withdrawn the invalid/incorrect objection/corporate benefits
claim on the scheduled withdrawal date, for the following reasons:
Members
wanting to avail 'late' withdrawals will be required to affix pre-paid coupons
for the late withdrawal fee, at the time of reporting the same. Acceptance of
such late withdrawals shall be subject to approval only.
12.12. Trade for Trade Segment
|
S
No |
Types
of default |
Penalty
Charge |
|
a. |
Non
settlement of trade |
0.5%
of the trade value |
|
b. |
Cancellation
of trade |
Rs.
1000/- per trade per side |
|
c. |
Failure
to settle within the stipulated time |
Rs.
500/- per trade per day, subject to maximum of 2.50 times the value of the
trade for each side with a ceiling of Rs. 10000/- |
|
d. |
Failure
to report within the stipulated time |
Rs.
500/- per trade per day subject to maximum of 2.50 times the value of the
trade for each side with a ceiling of Rs. 5000/- |
In addition to the above, a penal
interest at the rate of 7 basis points for each day of default shall be levied
on the members who have not paid the penalty imposed on them.
12.13. Charges for rectification of errors
committed by Clearing Members
A processing fee
penal charge shall be levied for rectification of error that has been committed
by the clearing member. The fee for all such error rectification that results
in credit greater than Rs. 1,000 / - to be passed on to the clearing member,
would be levied on the clearing member receiving the benefit.
|
Amount of credit received by the clearing
member |
Rectification charges to be levied (Amount in Rs.) |
|
Rs. 1000
to Rs. 10,000 |
100 |
|
>
10,000 |
1000 |
The processing fee
will be required to be paid in advance by the clearing member, by way of a
cheque, drawn in favour of 'National Securities Clearing Corporation Limited'.
Item 13
SETTLEMENT FUND
In pursuance of
Chapter XII of the Bye Laws administration, contributions to the CM Settlement
Fund and charges for utilisation of the same are specified herein.
13.1 CM Settlement Fund
A CM Settlement Fund shall be maintained in
respect of the Capital Market segment. In
pursuance to Chapter XII section 5 of the Bye Laws, the administration and
utilisation of this fund shall be applicable to such deals as may be prescribed
by the relevant authority.
13.2 Contribution towards CM Settlement Fund
Clearing members are required to provide
initial deposits to the CM Settlement Fund in as specified hereunder:
Clearing members constituted as individuals or
partnership firms are required to keep a cash deposit with the Clearing
Corporation of Rs.6 lakhs and a security deposit of Rs. 17.5 lakhs in such form
and manner as may be specified by the Clearing Corporation from time to time.
Clearing members constituted as corporates are
required to keep a cash deposit with the Clearing Corporation of Rs.15 lakhs
and a security deposit of Rs. 25 lakhs in such form and manner as may be
specified by the Clearing Corporation from time to time
The deposit requirements are summarised as
under:
|
Constitution of Clearing Member |
Cash Deposit (Rs. Lakhs) |
Approved collaterals (Rs. lakhs) |
|
Individual or partnership firms |
6 |
17.5 |
|
Corporates |
15 |
25 |
|
Professional Clearing Member |
25 |
25 |
13.3 Penal Charges for utilisation of Settlement
Fund
In the event of a CM clearing member failing to
meet his obligations to the Clearing Corporation in respect of cases specified
pursuant to Bye-Law 11(2) of Chapter VI of the Bye Laws, the Clearing
Corporation at its discretion may utilise the CM Settlement Fund to the extent
and in such manner as necessary. The amount so utilised will be subject to the
following condition:
The CM clearing member shall be required to
immediately pay the amount so utilised and also pay a penal charge at the rate
of 0.07 % per day computed on the amount outstanding from the day on which
monies are due to be paid in till the day all obligation including shortfall in
deposits are fulfilled.
Item 14
GUIDELINES FOR
GOOD / BAD DELIVERY
14.1 In pursuance of
Regulation 7.1 of the NSCCL Capital Market Regulations, it is hereby notified
that the Guidelines for Good/Bad Delivery as presented below shall be used as
guidelines for determining good/bad delivery.
SEBI APPROVED
GOOD/BAD DELIVERY NORMS
14.1.1 TRANSFER DEEDS
|
No |
Description |
Good/Bad |
|
1. |
Transfer Deeds in the prescribed form and
printed with the words "For the _________ Stock Exchange." Stock Exchange emblem may or may not be
printed. Month and year of printing
may or may not be put on the reverse of the Transfer Deed. |
Good |
|
2. |
Mutilated Transfer Deed with the signatures
of the transferor, witness, Directors and officer of the
Company/ distinctive numbers/any material portion badly torn overwritten, or
defaced |
|
|
|
Typical Cases : |
|
|
|
|
|
|
|
A) Material portion defined here only
pertains to the material portions at the time of delivery and not prospective
one. For a buyer Consideration column, Specimen signature column, Name,
Address, Occupation will also be the Material portion. |
|
|
|
Material portion includes of transferor's name and signature, company
name, folio no., certificate number, distinctive nos., number of shares, name
and signature of the transferee, specimen signature of transferee |
|
|
|
B) Transfer Deed torn in the prospective material portion · Torn and pasted with self-adhesive tape on which the required Details can be filled in without any difficulty. |
Good |
|
|
· Transfer Deed torn in non material portion and held together by a transparent tape |
Good |
|
|
· Transfer Deed torn end-to-end in any angle. |
Bad |
|
3. |
Transfer Deeds with correction like erasure, overwriting, alteration or crossing out in the
material portion |
Good if properly authenticated under the full
signatures of all the transferor |
|
|
Under noted corrections / alterations are not considered as correction
in material portion : |
|
|
|
A) Minor spelling mistake in the following fields are valid without the transferor's authentication provided the word can be properly
identified : a. Name of the Company. b. Number of shares in words c. Names of the Shareholders Illustration
Good Bad Telco
Teelco Tisco Fifty
Feefty Feefteen Ramesh
Rameesh Rajesh |
Good |
|
|
B) Erasure, overwriting, alteration or crossing out in one or two
characters in folio numbers. |
Good |
|
|
C) Erasure, overwriting, alteration or crossing out in one or two
characters of ' Distinctive Numbers.' |
Good if certificate number does contain any
erasure, overwriting alteration, or crossing out. |
|
|
D) Erasure, overwriting, alteration or crossing out in one or two
characters of ' Certificate Number '. |
Good if distinctive number does not contain
many erasure, over writing, alteration, or crossing out |
|
|
E) Erasure, overwriting , alteration or crossing out in Number of Shares in figures |
Good if Number in words does not contain any
erasure, overwriting, alteration, or crossing out. |
|
|
F) Erasure, overwriting, alteration or crossing out in one or two
characters in Number of shares in Words. |
Good if Number of Shares in Figures does not
contain any erasure, overwriting, alteration, |
|
|
G) List of certificates numbers and distinctive numbers and
distinctive numbers attached to transfer deed signed by all the transferors |
Good |
|
|
|
|
|
4. |
If the name of the transferor (s) in the share certificate & the
name in the transfer deed(s) differs materially. |
Bad |
|
|
|
|
|
|
A) Addition or Deletion of 1 or
2 alphabets. |
Good |
|
|
B) Krishna Chandra Chelura - C C Krishna |
Bad |
|
|
C)
Ashok Gupta - Gupta Ashok |
Good |
|
|
D) Corporation - Corpn/Corp. |
Good |
|
|
|
|
|
5. |
Transfer Deeds signed as 'Choonilal' whereas in share certificate the
name is spelt as 'Chunilal'. |
Good |
|
|
Other than any apparent difference in seller's signature must be
accepted. |
|
|
|
In case of apparent difference like |
Bad |
|
|
In case |
Good |
|
6. |
Transferor's signature in English, Hindi or any one of the Scheduled
languages in India.Assamese, Bengali, Gujarati,Hindi, Kannada, Kashmiri,
Malayalam, Marathi, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu - as per
Constitution of India - English Schedule ( Articles 314 (I) and 451). |
Good |
|
7. |
Signature of the Transferor is in an Indian
language other than the Scheduled languages of If attested by any person authorised to attest signatures
under the Seal/Stamp off his office |
Good |
|
8. |
Transfer Deeds in respect of joint holdings signed by all the joint
holders in any order. Provided the signatures are against the
relative names filled up in the Transfer Deed. |
Good |
|
9. |
Transfer Deeds without the name of the Company, name(s) of
Transferor(s), Folio No., share certificate no., Distinctive no., and number
of shares being written. |
Bad |
|
10. |
In one lot with one Transfer Deed name on one certificate reading as
"Ramesh C Talati" and on another certificate as "Ramesh
Chunilal Talati" but Register Folios same on both. |
Good |
|
|
In one lot, separate transfer deeds are required for each registered
folio. |
Good |
|
|
If the transferor's name is identical and folios are different and
there is only one transfer deed. |
Good |
|
11. |
In one lot with one Transfer Deed names on different certificates
reading as Ramesh Chunilal Talati and Talati Ramesh Chunilal but Register
Folio is same. |
Good |
|
12. |
Income Tax Authority or Collector signs as Transferor. (Number and
Date of the relative Order necessary). |
Good |
|
13. |
Instead of Executor's signature, his Agent's signature is put on the
Transfer Deed. (Number and Date of Registration of Power of Attorney necessary). |
Good |
|
14. |
Executor's signature without his rubber stamp.(Number and Date of
Registration of Power of Attorney necessary). |
Good |
|
15. |
In the case of Units transfer deed in the name of a Minor and signed
by natural Guardian. (In the case of Court Guardian, a court order is
required). |
Good |
|
|
Shares cannot be held in the name of a Minor
unless accompanied by Court Order granting permission for sales/purchase
which is beneficial to the Minor. |
Good – If accompanied by the relevant Court Order for sale. |
|
16. |
Unless the transfer deed is duly certified and countersigned by the Official Assignee. |
Good |
|
|
|
|
|
17. |
Transfer deeds signed under Power of Attorney where the power given is
subject to conditions |
Bad |
|
|
Transfer deed signed by Director of the Company and Under Board
Resolution not mentioned on the front or the reverse of the transfer deed. (
Stamp of Introducing member is not required to be affixed on the reverse of
the transfer deed) |
Good |
|
|
Transfer deed signed by an authorised signatory |
Good only if PA stamp of the introducing
Member is mentioned on the reverse of the Transfer Deed. |
|
|
Transfer deed signed by an authorised signatory of a custodian and the
PA registration no. is mentioned on face or the reverse of the transfer
deed. (Stamp of Introducing member is
not required to be affixed on the reverse of the transfer deed) |
Good |
|
|
Where the transfer deeds are signed by an
authorised signatory under a Board Resolution and the stamp UNDER BOARD
RESOLUTION is mentioned on the face or the reverse of the transfer deed.
(Stamp of introducing member is not required to be affixed on the reverse of
the transfer deed) |
Good |
|
18. |
Transfer Deed signed by a custodian on behalf of a client · In the
signature column the custodian does not put the stamp as 'Constituted Attorney' on behalf of the
transferor |
Bad |
|
|
Transfer Deed signed by a Custodian on behalf
of the client and in the signature column puts the stamp ' By Constituted
Attorney to the transferor ' with the P/A number given on the face or reverse
of the TD with the stamp and signature of the custodian. (Stamp of
introducing member is not required to be affixed on the
reverse of the transfer deed ) |
Good |
|
19. |
Shares sold by FIIs and transfer deed signed
by a Custodian on behalf of the FII.(Copy of RBI approval is not required to
be attached ) |
Good |
|
20. |
In case of GDR |
|
|
|
· Photocopies of the RBI approval attached to the deliveries ; OR · If RBI approval number and date is mentioned on the transfer deed
and attested by the introducing member |
Good Good |
|
21. |
Consideration amount and date of execution of the transfer deeds are
filled in. |
Bad |
|
22. |
Transfer Deeds signed by or on behalf of a Company against which
liquidation proceedings are pending. |
Bad |
|
|
· Unless the Transfer Deed is certified and countersigned by the
Liquidators. |
Good |
|
23. |
The name of the delivering broker with his SEBI Registration number
and date not mentioned at the back of the Transfer Deed. |
Bad |
|
|
In case the shares are delivered to the Clearing House by the
Custodian and the Transfer deed bears the stamp of Custodian along with the
Clearing Number of the Broker on whose behalf the shares are delivered. |
Good |
|
|
The date should be the pay-in date/ delivery date only. |
|
|
24. |
Shares held by a TRUST and Signed on the Transfer Deed as 'NAME OF
TRUST - PROPRIETOR'. |
Bad |
|
|
TD signed as "NAME OF TRUST - TRUSTEE" |
Bad |
|
|
Shares held in the name of a trust, if accompanied by a copy of the
resolution or the relevant portion of the trust deed authorising the trustees
to transact in securities on behalf of the trust. |
Good |
|
25 |
If shares held are duly registered by the company in the name of the
HUF (Shares held by HUF and signed by KARTA) |
Good |
|
26 |
Transferor's signature witnessed by a person but his full name not
given. as long as the name and address
of the witness are perfectly legible. |
Good |
|
27. |
Witness name, address and signature is in a language other than
English specified by the Ministry of Finance. Assamese, Bengali, Gujarati, Hindi, Kannada, Kashmiri,
Malayalam, Marathi, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu - as per
Constitution of |
Good |
|
|
If signed in a language other than specified by the Ministry of
Finance. |
Bad |
|
28. |
Attestation stamp in any one of the Scheduled languages in Assamese, Bengali, Gujarati, Hindi, Kannada, Kashmiri, Malayalam,
Marathi, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu - as per
Constitution of |
Good |
|
29. |
Transferor's signature attested by a Bank official · only the
designation mentioned. |
Bad |
|
|
· If the name, Designation of the attesting authority signing alongwith
the complete address is given. |
Good |
|
30 |
Attestation by Gram Panchayat or a Surpanch or Village Magistrate or
Village Munsiff under his seal. |
Good |
|
31. |
Signature attested by any person authorised to attest signatures with
his full name and address with the Official Seal/Stamp of his office. |
Good |
|
32. |
Transferor's signature is attested by a Notary Public.(The necessary
seal, rubber stamp, adhesive stamps as prescribed for such attestation should
be affixed in cases where Notary attestation is required i.e. In cases where
Rectification of objections is required due to signature differences). |
Good |
|
33. |
Transfer Deed is signed by the transferor · Signature is clearly of a name different than the name of the
transferor. · If signature is same for two different shareholders under two
different Transfer Deeds. |
Bad Bad |
|
34. |
Marketable lot with more than five transfer deeds. Upto five transfer deeds used
to make a marketable lot. |
Bad Good |
|
35. |
New shares which are issued on prorata basis and old shares standing
in the folio and name of same transferor and accompanied by one transfer deed
for a marketable lot. (The new share dividend declared for the previous year i.e. the old
new compensatory value (ONCV) would be payable on the entire market lot). |
Good |
|
36 |
Company's name has been changed but it has not been corrected on the
share certificate. |
Good |
|
37 |
Abbreviated name of a Company filled up in the transfer deed.If from
the abbreviated name the identity of the company can be ascertained. The name of the Company should be
identifiable., e.g. TELCO, TISCO,
L&T, etc. |
Good |
|
38. |
Exact position of TDs to be
attached on top of the certificate.TD should be placed on the top of the
share certificate. |
|
|
39. |
Transferor and witness is the
same. |
Bad |
|
40. |
Transfer Deeds in the prescribed form and name of a particular Stock Exchange filled in or not. |
Good |
|
41. |
Transfer Deed not in the
prescribed form. |
Bad |
|
42. |
Witness and attesting authority identical. |
Good |
|
43. |
Transfer Deeds bearing signatures of witnesses, the address of the
witness being in a different city or town or Centre other than that of
Transferor or Transferee. |
Good |
|
44. |
Prescribed Authority (ROC) seal overlapping and stamped twice.Even if
the signature of the Registrar of Companies is partly printed and the date
stamp is also partly printed but both the signature and the date should be
apparent |
Good |
|
45 |
The Endorsement of the Prescribed Authority (e.g. Registrar of Companies)
bears the same date as the date from which the Register of Members of the
Company is closed |
Good |
|
46. |
If the Endorsement of the Prescribed
Authority (e.g. Registrar of Companies) bears a date prior to the date of
issue of share certificate or the date of allotment of shares. Provided the Endorsement of the Prescribed
Authority bears a date of or after the date from which the Register of
Members of the Company closed last. |
Good |
|
47 |
Transfer Deed endorsed by the Prescribed
Authority on a date prior to closure of the Register of Members of the
Company delivered after the date of closure of Register of Members. |
Bad |
|
48 |
Transfer Deeds accompanying debenture
certificates or any other permissible listed security (other than equity)
whether date-stamped by the Prescribed Authority or not. Provided for the convertible portion a
separate date-stamped Transfer Deed is delivered. |
Good |
|
49 |
Transferor's signature on the transfer deed
with the date on which he has signed. |
Good |
|
50 |
Witness is a Non-Resident and the address
given is of a foreign country. |
Good |
|
51 |
Distinctive numbers range "To"
partly filled in the transfer deed. e.g. 4589201 - 300 etc. |
Good |
|
52 |
In the case of mutual funds, the ROC stamp
and signature are missing (except in case of
Schemes of Unit Trust of India). |
Good |
|
53 |
Certificates with multiple folios per market lot attached to separate
transfer deed (subject to guideline no. 35 above). |
Good |
|
54. |
Logo of the Stock Exchange on the reverse of the transfer deed
missing. |
Good |
|
55 |
Attestation of the transferor's signatures is not mandatory.except in
the case where the transfer has been returned by the company due to SIGNATURE
DIFFERENCE. |
Good |
|
56 |
Units issued with the terms 'either or survivor', if signed by all
holders If signed by any one of the holders |
Good Good |
|
57 |
Transferor's signature on the transfer deed is facsimile signature for
Registered custodians. |
Good |
|
58. |
Certified Transfer Deed Provided the name and address of the Transferor the distinctive
numbers of the shares covered by the Transfer Deed and date of certification
are given. |
Good |
|
59. |
Any erasure or alteration in the Certified Transfer Deed. When
authenticated by an authorised signatory of the Company. |
Good |
|
60. |
Certified Transfer Deeds and share certificates delivered in part for
bargains in market trading unit. |
Good |
|
61 |
In case of shares under lock in-period, if the transfer deed date is
prior to the lock-in period last date but the date of introduction into the
market is after the last date of lock-in period. If the transfer deed date is prior to the lock-in period last date and
the date of introduction into the market is before the last date of lock-in
period. |
Good Bad |
|
|
|
|
|
62. |
Some companies allot record numbers for shares issued by them apart
from distinctive number ranges. For these shares, if record number is filled
up along with distinctive number ranges on the transfer deed. |
Good |
|
62A |
If only the record number has been filled up instead of distinctive
number ranges on the transfer deed. |
Bad |
|
62B |
Transfer deeds ( dated June 01, 1997 and
thereafter ) bearing rubber stamps on the reverse thereof other than those of
members of the stock exchanges/clearing house/clearing corporations, SEBI
registered sub-brokers and Remisiers registered with the stock exchanges. |
Bad |
14.1.2 SHARE CERTIFICATES
|
No |
Description |
Good/Bad |
|
63 |
Name of the company or emblem is not readable
on the common seal or there is no common seal on the share certificate. |
Good |
|
64 |
The last date for payment of call has expired and the call has not
been paid or if the call has been paid, the necessary Call Receipt has not
been attached. The call
payment receipt with the stamp of the Bank before or on the due date
if attached to the securities good delivery for three months from the last
date of call payment or next book closure announced by the company whichever
is later. All call payment receipts after due date must
be endorsed as ' cheque / draft realised ' by the Bank / Co / Registrars. Where the closure of the register of members fall within the period of
3 months from the due for payment of call money, call money receipt valid
until the closure of Register of Members occurring after the first such
closure |
Bad Good. Good Good |
|
65 |
All securities with stickers issued by the companies in lieu of
endorsement |
Good |
|
66 |
If call money paid but not endorsed on share certificate even after
the book closure but transfers affected after the call payment date. |
Bad |
|
67 |
If the final call is endorsed but the initial or the initial and the
second call not endorsed. ( i.e. if marked
"FULLY PAID" ) |
Good |
|
68 |
In case of fully convertible debentures, after the debentures have
been converted into equity, if the call money endorsement has been done only
for the equity portion and not for the debenture portion or vice versa. |
Good |
|
69 |
Call paid endorsements made by the company with call amount and
signature of the Authorized Signatory with or without the Rubber stamp of the
Company and date of payment of the call. |
Good |
|
70 |
In the case of partly paid shares, when a call has been made but not
paid and delivery effected during the period of ten days before the last date
fixed for payment. |
Bad |
|
|
If the call receipts are attached to the documents |
Good |
|
71 |
Application Receipts and Call money receipts not bearing bank stamps
and payment details . |
Bad |
|
72 |
Any significant correction, erasure, overwriting, crossing out or
alteration in the quantity of the shares, in the last registered holders name
or in any material particulars on the share certificate. |
Bad |
|
|
Unless the Authorised Signatory who has signed on the certificate,
authenticates the correction Or the
correction is initialed and authenticated by any other officer under the
Company's rubber stamp. |
Good |
|
73 |
Certificates badly torn as is not to be in a
deliverable condition or share certificate torn through and through or badly
torn as to obliterate or render illegible or create the impression of
cancelling the numbers or directors or other signature or the date or any
other particulars or if it is written upon or damaged or mutilated by
advertisements, printing, rubber stamp or otherwise or if a material part of
the certificate be torn out or cut off. |
Bad |
|
74 |
Share certificates defaced or mutilated in
portion: |
Bad |
|
|
The following will be considered as material portion in the case of
share certificate: |
|
|
|
|
|
|
|
(I) Share certificate torn end to end and pasted with transparent
self-adhesive tape |
Bad |
|
|
(ii) Where shares have been transferred to a new holder and if torn at
the original holders name portion |
Good |
|
|
(iii) Folio number and name overwritten in one or two characters and
not authenticated by the authorised signatory |
Good |
|
|
iv) If the share certificate is torn at the company name portion but
is decipherable |
Good |
|
|
(v) Corrections in transfer Number or Date of transfers, if legible
and not authenticated. |
Good |
|
|
vi) Share Certificates with bar codes not concealing any material
information. |
Good |
|
75 |
If the name of the Company has been disfigured in the body of the
share certificate so as to affect it materially. |
Bad |
|
|
If the name of the company is identifiable. |
Good |
|
76 |
Certificates in the case of UNITS discharged by the transferor for
purpose of repurchase and then cancelled by him and initialed. |
Bad |
|
77 |
Share certificate contains one name but the transfer deed consists of
two signatures. |
Bad |
|
|
If both the signatures on the transfer deed are identical in nature or
can be identified as signature of the same person. If the transferor has signed twice but has
struck off the 2nd signature |
Good |
|
78 |
Share certificate contains name of one transferor but transfer deed
contains two names and signatures respectively. |
Bad |
|
79 |
Preferential/promoters quota shares under lock-in period
delivered which are not transferable. |
Bad |
|
80 |
Share certificate issued without the signature of Secretary/Authorised
signatory. If the shares are
transferred subsequently and the authorised signatory has signed against such
transfer. |
Bad Good. |
|
81 |
Signature missing in the initial column but signed by Authorised signatory
in the required column on the reverse of the certificate. |
Good |
|
82 |
Endorsement effected on the reverse of the certificate and struck off
and again endorsed. |
Good subject to proper authenti- cation by the Company by putting a round stamp of the Company. |
|
83 |
Certificate with company's old registered office crossed out and new
address stamped without authentication. |
Good |
|
84 |
Certificate without mentioning the place of issue. |
Good |
|
85 |
Revenue stamp affixed on the certificate concealing any material
portion of the certificate. Provided any material portion like locking period date, NRI details
are not affected |
Good |
|
86 |
Revenue stamps affixed/impressed by the Company on the share
certificate has come off. |
Good |
|
87 |
Any alteration or erasure or correction
without initials in the transfer endorsement on the back of the share
certificate as for example made in the year 1960 and subsequently the shares
have again been transferred by the Company, say in 1961. |
Good |
|
88 |
Share certificates with irrelevant or extraneous rubber stamp or
writings on the scrip. Provided the rubber stamp or the writings
does not affect any material portion of the scrip. |
Good |
|
89 |
Increase or decrease of the Capital and if the certificate does not
carry the endorsement on the face of the certificate. |
Good |
|
90 |
Absence of holder's discharge
on the Letter of Allotment. |
Good |
|
91 |
Share Certificate and Transfer Deed not attached together. |
Bad |
|
92 |
Shares standing in the name of Non-Resident Individuals. Provided the declaration stamp
as per the RBI guideline is affixed and countersigned by the
introducing member |
Good |
|
93 |
Name of the holder printed in two lines which looks like joint holding
or one line of address printed and
looking like second holder. |
Good |
|
94 |
Lock in period mentioned in the certificate, without specific date of
release of lock in. |
Bad |
|
95 |
Shares issued in the name of Sole Proprietor/ Partnership firm signed
by the Proprietor/Partner. Units/debentures issued in the name of Sole Proprietor/ partnership
firm signed by the Proprietor/partner |
Bad Good |
|
96 |
In case the shares of a company are not pari passu with the existing
equity shares of the company in two financial years then new share dividend
declared for the previous year i.e. the old new compensatory value(ONCV) for
two years has to be paid. The full dividend declared will have to be paid (interim + final) |
|
14.1.3 MISCELLANEOUS
|
No. |
Description |
|
97 |
Validity period of Company Objection by the last buying broker to be
notified to the exchange/introducing broker is 12 months from the date of the
objection memo. |
|
98 |
Objections must be accompanied with Share Certificates. |
|
99 |
Shares lodged for transfer after book closure (but before one year
from the date of stamping the transfer deed) are returned under objection can
be lodged as company objection. |
|
100 |
Where the shares have been duly transferred
by the company in the name of the transferee, and thereafter the company
sends a letter informing transferee that the shares have been transferred
based on fraudulent documents, such cases can be lodged as company objection
subject to the following conditions and procedure : · In cases where the company has transferred
certificates which are fake and later sends a letter informing that the
shares have been transferred on fraudulent certificates, such cases will NOT
be treated as company objections and company will be responsible for the transfer. · In cases where the shares are under stop
transfer, stay order, non transferable ( lock - in period ) or shares are
partly paid and the company has transferred the shares and later sends a
letter informing that the shares have been transferred on fraudulent
documents, such cases will NOT be treated as company objections and the
company will be responsible for the transfer. · In cases where the certificates are genuine
but the transfer deed is forged ( i.e. the company has transferred the shares
in good faith ) the shares can be accepted as company objection. In such
cases the company should necessarily enclose the copies of both sides of the
transfer deeds based on which shares were transferred by the company in
favour of the holder and which later on has been found to be based on forged
documents, and all subsequent transfers thereafter alongwith the objection. Procedure : ( In order to simplify the understanding of the procedure, the
following illustration has been used : A-- > B -- > C -- > D -- > X -- > Y -- > Z The shares were first sold through 'A' in the
market. After passing through 'B' and 'C' the shares were lodged by 'D' to
the company for transfer. After receiving the shares duly transferred from
the company in his name 'D' sold the shares in the market. These shares after
passing through ' X' and 'Y' are finally sent by 'Z' to the company for
transfer in his / her name. After receiving the shares from the company duly
transferred in his name, 'Z' has received a letter from the company stating
that the shares transferred in the name of 'D' were based on fraudulent
documents. · 'Z' will report the objection alongwith the company objection
against 'D' · 'D' will rectify /replace the shares within 21 days as per the BDC
procedures · 'D' may in turn lodge the bad delivery for rectification through the
BDC against 'A' The validity period of reporting such cases
will be 36 months from the date of latest transfer by the company ( in the
above example 36 months from the date the shares were transferred in the name
of 'Z' ). The company will also furnish copies of both sides of transfer deed
based on which shares were transferred in favour of 'Z' and 'D' along with
the objection memo. |
|
101 |
In case of joint holding, and in the event of
death of any of the holders, transfer can take place on the basis of the
death certificate accompanying the transfer deed only for a period of two
years from the date of the death or ensuing book closure, whichever is later. The Introducing member of a recognised Stock
Exchange may certify / attest copy of the death certificate and also issue an
identity certificate in case where the name of the deceased on the share
certificate is not identical with the name of the death certificate. |
|
102 |
While rectifying objections due to signature
differences, a fresh signature by the transferor along with attestations is
mandatory if the same transfer deed or a fresh transfer deed along with
attestation is mandatory. Clarification : Members are required to
submit fresh transfer deeds duly attested for all signature difference cases
(even in case of signature difference of authorised signatory, fresh transfer
deed signed by a different authorised signatory also needs to be attested). |
|
103 |
In case Rights/Bonus shares tendered as
corporate benefits are reported as bad delivery, if it is odd lot, the value
of shares based on the rate prevalent on the day of reporting bad delivery
will be paid. |
|
104 |
Rectification/replacement of transfer deed
under objection should be in market lot only (even if transfer deed under
objection is submitted in non-market lot) |
|
105 |
If
Jumbo transfer deed is submitted as company objection, original
transfer deeds need not be returned by the receiving member |
|
106 |
When documents are returned under signature difference, the transfer deed can
be attested by the introducing member. If the introducing member is a
corporate, the Director or authorised signatory can attest the transfer deed,
under his company's stamp, with SEBI Registration Number . |
|
107 |
For reporting as company objections, the
transferee portion of the transfer deed should be duly filled in. |
|
108 |
For reporting fake/forged shares as company
objection, the following documents are required: A. If they are returned as objection from the company due to the above
reason : · company objection memo stating that the shares are fake/forged · copies of both sides of the transfer deeds · copies of both sides of the share certificates B. Otherwise one of the following documents are required : · public notice given by the company/registrar · notification from any stock exchange · letter of intimation from the company to
stock exchange |
|
109 |
For reporting missing/lost/stolen shares as objection the following
documents are required: A. If they are returned as
objection from the company due to above reason : · company objection memo
stating that the shares are missing/lost/stolen accompanied by a copy of Court Order or FIR
or copy of acknowledged police complaint · copies of both sides of the
transfer deeds · copies of both sides of the
share certificates B. Otherwise one of the
following documents are required : · public notice given by the company / registrar · notification from any stock exchange · letter of intimation from the company to stock exchange. Clarifications : 1. In cases where duplicate shares have been
issued to a third party under the provisions of Section 108 (1) A of the
Companies Act, the company should also provide the name and address of the
third party to whom the duplicate shares have been issued along with the date
of request for duplicate shares by the third party. 2. In
cases where the companies have issued duplicate certificates for
missing/lost/stolen shares, the receiving member is not required to submit
FIR/ court order copies, while reporting company objections. |
|
110 |
Attestation is required where signature of
transferor is in an Indian language other than the Scheduled languages in In cases where the seller delivers the shares in market lots but the
receiving member lodges the shares for transfer with a jumbo transfer deed
and the receiving member is not in a position to return all the original
transfer deeds submitted with each market lot whilst reporting company
objection, the receiving member is required to give an undertaking
indemnifying the introducing member in the event of the said original
transfer deed(s) being misused at any future date in the prescribed form 6J. |
14.1.4 ADDITIONAL GOOD/BAD DELIVERY
NORMS
|
S.No. |
Description |
Good/Bad |
|
|
|
|
|
1. |
Securities with transfer deeds bearing the name/rubber stamp of the
defaulter/surrendering member/expelled member as an introducing
member/delivering member on the Exchange |
Bad |
|
2. |
Securities with transfer deeds bearing the name/rubber stamp of
defaulter of some other exchange as an introducing/delivering member and
notified as bad delivery by the Exchange |
Bad |
|
3. |
Delivery of underlying shares of GDR/ADR in physical mode |
Bad |
|
4. |
Delivery of shares by institutional investors viz. domestic financial
institutions, banks, mutual funds, pension funds, foreign institutional
investors and overseas corporate bodies in physical mode after a specified
date |
Bad |
|
5. |
Delivery of shares of a scrip by any investor, falling under the list
of compulsory trading and settlement in demat mode in Regular Market, after a
specified date |
Bad |
|
6. |
Delivery of shares by an individual/HUF in LP Market exceeding 500
shares on a trade day |
Bad |
|
7. |
Delivery of shares by any person other than individual/HUF in LP
Market |
Bad |
|
8. |
All share certificates bearing the stamp "surrendered for
dematerialisation" |
Bad |
|
9. |
Validity of objection where SEBI Approved Good/Bad Delivery Norm 97 and Norm 100 are
applicable |
Norm 97 is enforceable |
Item 15
FORMAT OF MEMBERS STAMP
In pursuance of
Regulation 6.12.1 of the Capital Market Regulations, members are required to
affix a stamp bearing the name and SEBI registration number (Code) of the
clearing member and other details on the reverse of the transfer form in
respect of the securities delivered to the clearing house. Members are required
to use one of the formats specified below.
The
formats of the stamp to be affixed on the reverse of the transfer form are
given below:
Format 1
Member
Name :
SEBI
Reg. No. : Pay-in Date :
Settl.Type
& No. : Client A/c.
No.:
Format 2
Member
Name :
SEBI
Reg. No. : Pay-in Date :
Settl.Type
& No. :
Delivery
No. : Client A/c. No. :
The
dimensions of the stamp shall not exceed 4 inches by 2 inches.
Members are required to use either Format 1 or
Format 2 as given above for all securities delivered through the clearing
house. All details prescribed in Format 1 and Format 2 are mandatory with the
exception of the details pertaining to Client A/c. no. which is optional. In
case members are not using the Client A/c. no. field, the same has to be filled
in as 'XXXX'.
Members proposing to use Format 2 are required
to intimate the same to the clearing house in writing failing which it shall be
assumed that they shall be using Format 1.
Members
are required to give seven days prior notice to the clearing house in writing
in case they propose to change from one format to another at a future date.
Any violation in the use of the above formats
shall be treated as bad delivery.
Item 16
DELIVERY UNITS
In pursuance of
Regulation 7.6.1, 7.6.2 and 8.1 of the Capital Market Regulations, delivery
units are prescribed as under:
16.1 Delivery unit for Regular
Market Deals
Delivery unit for Regular Market Deals in
non-depository (physical) or in depository mode shall be the lot size
prescribed for each security of the Capital Market Segment of the NSE.
16.2 Delivery in prescribed units
for Regular Market Deals in Non-Depository Mode
One certificate for the exact quantity of the
delivery unit or two or more certificates making up in the aggregate the
delivery unit accompanied by one or more transfer deed subject to not more than
five transfer deeds for the exact delivery unit shall be delivered in
settlement of settlement obligations in securities for the Regular Market
Deals.
16.3 Delivery unit for
Regular Market Deals in Depository Mode
Delivery unit for Regular Market in depository
mode shall be lot size one (1) for each security of Capital Market Segment of
the NSE.
16.4 Delivery unit for LP Market
Deals
Delivery unit for LP Market Deals shall be
equivalent to the size of the deal or 500 shares, whichever is lower.
16.5 Delivery in prescribed units
for LP Market Deals
One certificate for the exact quantity of the
delivery unit or two or more certificates making up in the aggregate the
delivery unit accompanied by one or more transfer deed subject to not more than
five transfer deeds for the exact delivery unit shall be delivered in
settlement of settlement obligations in securities for the LP Market Deals.
16.6 Delivery unit for
IL & BL Market Deals in Depository Mode
Delivery unit for IL Market Deals in depository
mode shall be lot size one (1) for each security of Capital Market Segment of
the NSE.
Item 17
BAD DELIVERY CELL
In pursuance of
Regulation 10 and 12 of Capital Market Regulation, procedures for handling
intra exchange and inter Exchange Company objections through Bad Delivery Cell
(BDC) are given below:
Contents:
17.1: Procedure for handling Local Exchange Objections
17.1.1 Procedure
to be followed by the Member for reporting Local Exchange Objections to the BDC
of the local exchange
17.1.2 Incorrect reporting of Company Objections
17.1.3 Non
Rectification of Shares or Bad delivery of rectified/replaced shares submitted
Under Objection.
17.1.4 Second Time Objections.
17.1.5 Corporate Benefits
17.2: Procedure for handling Inter Exchange objections
17.2.1 Procedure
to be followed by a Member for reporting Inter Exchange objections to Bad
Delivery Cell (in case the shares have been transacted on more than one
exchange).
17.2.2 Incorrect reporting of Company Objections
17.2.3 Non Rectification of Shares or Bad delivery of
rectified/replaced shares submitted Under Objection.
17.2.4
Second Time Objections.
17.2.5 Corporate Benefits.
17.3: General Instructions.
Terminology:
The
terms used to explain the procedure for reporting objections to Bad Delivery
Cell are defined below:
|
BDC |
Bad Delivery Cell |
|
First Introducing Exchange (FIE) |
The exchange where the shares were first
introduced |
|
Local Exchange (LE) |
The exchange where the shares were traded for
the last time before they were sent for transfer to the company. |
|
First Introducing Member (FIM) |
The member who has introduced the shares on
the First Introducing Exchange. |
|
Last Introducing Member (LIM) |
The member who introduced the shares on the
local exchange |
|
Receiving Member (RM) |
The last member of the local exchange who has
finally received the shares before sending them for transfer to the company. |
|
Previous Member (PM) |
The member from whom LIM purchased the
shares. (i.e. the member who has
delivered the shares to the LIM) |
17.1. Procedure for handling Local Exchange Objections
17.1.1 Procedure to be followed by the Member, for
reporting Local Exchange (LE) objections to the BDC, where, the RM and the FIM
are of the same exchange.
1. The shares under objection are required to
be lodged by the RM of the LE with the BDC in the prescribed form BDC-1A.
Claims for corporate benefits (if any) should also be made in Form BDC- 1A. RMs
will be required to report such objections to the BDC on the days specified by
the exchange (see schedule)
2. The following documents are required to be
lodged:
3. All the documents as given in point 2 are
required to be lodged by the RM with the BDC in a sealed plastic pouch. Form
BDC-1A is required to be submitted in triplicate, of which one copy should be
attached on the pouch, and the remaining two copies should be attached to the
documents and placed inside the pouch.
4. The BDC will give an acknowledgement to the
RM on the third copy of Form BDC - 1A which is attached outside the pouch. This
acknowledgement will be given by using a rubber stamp and will bear the words
“subject to verification / counting ".
5. The BDC will retain one copy of Form BDC -
1A for its records, while the copy of Form BDC - 1A attached to the documents
will be handed over to the FIM.
6. If all the shares (pertaining to the same
company), have been introduced by the same FIM, then the RM must report this as
one objection (i.e. in one form BDC-1A). On the other hand, if the shares have
been introduced in the exchange by more than one FIM, then the RM must report
the objections separately for each FIM using a separate form BDC-1A and in
separate pouches.
7. The BDC will allot a unique serial number
(BDC Inward No.) to each objection case reported by the RM.
8. The BDC will verify/count the documents
enclosed by the member. If the contents
of the pouch are not in order, the same will be returned to the RM of the
exchange.
9. a. In the event that the BDC is not equipped
to carry out the verification/counting the BDC will sort the documents first
introducing member wise and handover the documents to the FIM within 24 hours
of receipt of such objections.
b. The FIM will count the securities on the
counter and give an acknowledgement to the BDC for the number of securities
received. The verification for the correctness of the objection will be done
later. During the process of verification,
if the FIM finds that the objection is incorrect, he will return the objection
to the BDC within seven days along with form BDC-3A. The BDC will give an
acknowledgement on form BDC-3A to the FIM.
c. If the BDC is satisfied with the claim of
the FIM regarding the invalidity of the objection, then the documents will be
returned to the RM. If the BDC finds that the objection is valid then the FIM
will be required to accept and rectify the objection.
10. The BDC will sort all the objections
received, in the order of FIM.
11. The BDC will forward the pouch containing
the objections to the FIM within three days of receipt of such objections. The
FIM will acknowledge the receipt of such objections by affixing his rubber
stamp and initials on the copy of Form BDC - 1A retained by the exchange. The
BDC will stamp the date by which the shares are to be rectified or replaced by
the FIM (i.e. 21 days from the date of submitting objection to FIM). The stamp
will be put on form BDC 1A in a different colour while giving acknowledgement
copy to the FIM.
12. The
FIM will enclose the following documents while rectifying / replacing the
shares under objection.
13. The
FIM will hand over the documents mentioned in point 12 above in a plastic pouch
on the rectification day to the BDC. The BDC will return one copy of Form BDC -
2A to the FIM, acknowledging the receipt of rectified shares by affixing a
rubber stamp bearing the words " subject to verification/counting
". One copy of Form BDC - 2A will
be retained by the BDC and the last copy of Form BDC - 2A along with the
rectified documents will be returned to the RM.
14. In the event of closeout, the cheque shall
be in favour of the RM who has reported this objection to the BDC for
rectification.
15. The BDC will handover the
rectified/replaced shares/ cheque and corporate benefits to the RM within seven
days of the rectification day.
16. If the FIM fails to rectify / replace the
shares under objection by the prescribed rectification day the exchange will
auction/close out the transaction as per the closeout procedure laid down in
17.1.2 Incorrect reporting of Company Objections
1. If the FIM finds that the objection
/corporate benefits has been reported wrongly against him, the FIM will report
such cases to the BDC by filling in form BDC - 3A and will return the shares
received under objection to the BDC along with copy of form BDC 1A.
2. If no such objection has been raised by the
FIM within seven days of receiving the objection, it will be understood that
the FIM has accepted the objections / corporate benefits reported against him
and will be required to rectify / replace the shares by the rectification day.
3. The BDC will return the shares wrongly
reported as objection back to the RM.
4. In case of invalid claim for Corporate Benefits
the FIM must submit only the form BDC - 3A duly authorised by the BDC official
(Verification Officer) of the Exchange along with a copy of form BDC - 1A. In
such cases the FIM shall retain the shares and rectify the same within the
stipulated time. The BDC will verify the validity of claim for Corporate
Benefit. If the claim is found to be invalid, the BDC will forward one copy of
form BDC-3A to the RM.
17.1.3 Non
Rectification of Shares or Bad delivery of rectified/replaced shares submitted
Under Objection
1. If the RM
finds that the shares received after rectification or replacement are
not good delivery, the RM will report such cases in prescribed form BDC - 4A
(in triplicate) to the BDC along with a
copy of Form BDC-1A and 2A within 48 hours of receipt of such shares.
2. If the RM finds that the benefits claimed by
him are not settled then the RM will accept the rectified shares and will
report only the unsettled claim to the BDC.
3. The BDC will verify the shares/benefits and
if the shares/benefits are found to be bad delivery/unsettled then the BDC will
straightaway close - out such cases (without going through auction) as per the
closeout procedures laid down
17.1.4 Second Time Objections
1. In the case where same shares are rectified
and if the rectified shares are again returned under objection by the company
these shares will be deemed as
"Second time objections" and the shares will be straightaway closed
out (without going through the auction process) as per the closeout procedure
in Para 17.3.1. However, in the cases where shares have been replaced or
procured under auction and these shares again come under objection, these shares will not be considered as second
time objections and will be treated as
fresh objections and dealt with accordingly.
2. The RM will report the shares under second
time objection to the BDC in the form for second time objections. Form for
Second Time Objections will be the same format as BDC - 1A/1B but will be of a
different colour (pink colour) and have the words “SECOND TIME OBJECTION
“written in bold on the top of the form.
3.
The following documents are required for reporting second time objections.
4.
The documents mentioned in point three above are required to be submitted in a
plastic pouch.
5.
All the Second Time objections will be straightaway closed out without going
through the auction process (see close out procedures in
17.1.5 Corporate Benefits
1. Members are required to claim corporate
benefits while submitting the bad delivery to BDC in form BDC - 1A. Once the
claim for benefits has been made by a member, the member cannot refuse to
accept the corporate benefits.
2. If the market rate of the corporate benefit
is less than the cost of procurement of the benefit then such benefit may not
be taken up for settlement.
3. If the member is not in a position to submit
the corporate benefit in the form of shares then he should submit a cheque as
per the valuation given in Annexure-17.1
along with form BDC - 2A.
4. Rectified/replaced shares shall be accepted
by the BDC only if they are accompanied with the corporate benefits (either in
the form of shares or equivalent value in the form of cheque in favour of the
receiving member) claimed as per form BDC-1A.
17.2 Procedure
for handling Inter Exchange objections.
17.2.1 Procedure to be followed by a Member for
reporting Inter Exchange objections to BDC (in case the shares have been
transacted on more than one exchange)
The
procedure has been split into two parts:
In Part 1 the RM will approach BDC of LE and
submit his objections using form BDC-1A ,which will have to be rectified by the
LIM as per the procedures laid down for handling local exchange objections.
In
the Second Part, LIM may opt for any of the following two options:
Option 1: In case of Inter Exchange
objections the LIM may handover the documents under objection to the PM (who
has delivered the shares to him) directly without going through the BDC.
Option 2: LIM can approach the BDC of the LE
for rectification / replacement of the shares under company objection. In that
case the BDC of LE will forward the shares to the BDC of the FIE who will in turn
forward the same to the FIM. The detailed procedure in case of Option 2 will be
as under:
1. The shares under objection are required to
be lodged by the LIM with the BDC of the LE in the prescribed Form BDC - 1B in
quadruplet. Claims for corporate benefits (if any) should also be made in Form
BDC- 1B.
2.
The following documents are required to be enclosed.
3. Two sets of photo copies of the documents
mentioned in point 2 above are required to be submitted at the time of
reporting of objection. One copy of this set will be retained by the BDC of LE.
The second set along with the original documents will be forwarded to BDC of
FIE.
4. All above documents are required to be
lodged with the BDC of LE in a sealed plastic pouch. The original documents
along with one set of photocopies should be enclosed in one pouch, while the
second set of photocopies should be enclosed in a separate pouch. An additional
copy (fourth copy) of Form BDC - 1B will be attached outside the pouch
containing the second set of photocopies.
5. The BDC of LE will give a subject to
verification/counting acknowledgement to the LIM on the fourth copy of Form BDC
- 1B by affixing a rubber stamp.
6. The
BDC of the LE will retain the pouch containing one set of photocopies
for its records, while the pouch containing the original documents and one set
of photocopies will be forwarded to the BDC of the FIE after verification of
the objections.
7. The members are required to report
objections pertaining to shares of different companies/different FIMs
separately (i.e. each pouch shall contain one objection pertaining to one
company and one introducing member).
8. The BDC of LE will affix a unique serial
number called the BDC inward number on Form BDC-1B. The BDC inward no. will be
an eight digit reference serial no. The first two digits will be the exchange
code of the LE followed by a six digit serial number. All future communications
pertaining to an objection should be done by using the BDC Inward No. as the
reference number.
9. The BDC of LE will verify/count the
documents enclosed by the member. If the
contents of the pouch are not in order, the same will be returned to the LIM.
10. The BDC of the LE will sort all the
objections received, in the order of the first introducing exchange. All
objections pertaining to the FIE will be sent in one parcel to the FIE along
with a list of all objections enclosed.
11. The BDC of the LE will forward the pouch
containing the objections (along with original transfer deed, share certificate,
company objection memo, other documents and one set of photocopies of all the
documents ) to the BDC of the FIE within seven days of receipt of such
objections.
12. The BDC of the FIE will verify / count the
contents of the pouch received from the BDC of the LE before handing over the
same to the FIM.
13. The BDC of FIE will hand over the objection
to the FIM on the day specified by the exchange (as per the objection schedule
followed by the exchange). The BDC of the FIE will retain the second set of
photocopies for its reference after obtaining an acknowledgement on the copy of
Form BDC - 1B from the FIM. The FIM is required to rectify/ replace the shares
within 21 days of receipt of shares under objection. If the FIM fails to
rectify/ replace the shares within 21 days, the first exchange will
auction/close-out the shares as per the procedure laid down in
14.
The FIM will enclose the following documents while rectifying / replacing the
shares under objection.
15. The FIM will hand over the documents
mentioned in point 14 above in a plastic pouch on the rectification day to the
BDC of the FIE. The BDC of the FIE will
return one copy of Form BDC - 2B to the FIM after giving a subject to
verification/counting acknowledgement by affixing a rubber stamp on Form BDC -
2B. One copy of Form BDC - 2B will be retained by the BDC of FIE and the
rectified documents along with third and fourth copies of Form BDC - 2B will be
returned to the BDC of the LE.
16. BDC of FIE will verify all the documents
and return the rectified/replaced shares/ demand draft/pay order and corporate
benefits back to BDC of LE within seven days of rectification/replacement.
17. BDC of LE will hand over the
rectified/replaced shares/demand draft for transfer stamps / close-out amount
and corporate benefits back to LIM after verification.
18. The LIM will duly acknowledge the rectified
shares received by affixing the rubber stamp on the copy of Form BDC - 2B
retained by BDC of last exchange.
19.
The demand draft/pay order shall be in favour of the LIM.
20. In case of close-out by the exchange, the
BDC of the FIE will have to collect the demand draft/pay order from the FIM, in
favour of the LIM and forward the same to the BDC of the LE.
17.2.2 Incorrect reporting of Company Objections
1. If the FIM finds that the objection has been
wrongly reported, the member should report the invalid objection by submitting
form BDC-3B in quadruplet along with a copy of form BDC - 1B and the shares
received to BDC of FIE. This should be done within a period of seven days from the
date of receipt of such objections, failing which it will be understood that
the FIM has accepted the objections / corporate benefits reported against him
and will be required to rectify / replace the shares by the rectification day
or else the exchange will auction/close-out the shares as per the close out
procedure in Para 17.3.1.
2. In case of invalid claim for Corporate
Benefits the FIM must report such cases to the BDC of the FIE by submitting
form BDC - 3B in quadruplet along with a copy of form BDC - 1B within seven
days of receipt of the claims . In such
cases the FIM shall retain the shares and rectify the same within the
stipulated time. The BDC of the FIE will verify whether the claim for Corporate
Benefit is invalid, before forwarding the forms BDC - 3B and BDC-1B only to the
BDC of the LE.
3. BDC of FIE will verify the validity of the
objections raised by the FIM and return the shares back to BDC of LE who in
turn will verify the objections received and will hand over the shares to the
LIM along with a copy of the form BDC - 3B and BDC-1B.
17.2.3 Non Rectification of Shares or Bad delivery of
rectified/replaced shares submitted Under Objection.
1. If the LIM finds that the shares received by
way of rectification or replacement are not good delivery, the LIM will report
such cases in the form BDC-4B (in quadruplet) to the BDC of the local exchange
along with a copy of Form BDC - 1B and 2B within 48 hours of receipt of such
shares.
2. If the LIM finds that the benefits claimed
are not correctly settled then the LIM will accept the rectified shares and
will report only the unsettled benefits to BDC of the LE.
3. The BDC of the LE will verify these
shares/benefits and if the
shares/benefits are found to be bad delivery/unsettled then the BDC of the LE
will report such cases to the BDC of the FIE within a period of seven days from
reporting of such cases. The BDC of the FIE will verify the claims and in case
of valid claims, will straightaway close-out such cases (without going through
the auction process) as per close out procedures in Para 17.3.1. The FIM will
be intimated that the deal is being closed out and that his account will be
debited accordingly.
17.2.4 Second Time Objections
1. In the case where same shares are rectified
and if the rectified shares are again returned under objection by the company
these shares will be deemed as "Second time objections" and the
shares will be straightaway closed out (without going through the auction
process) as per the closeout procedure in Para 17.3.1. However, in the cases
where shares have been replaced or procured under auction and these shares
again come under objection, these shares will not be considered as second time
objections and will be treated as fresh objections and dealt with accordingly.
2. The LIM will report the shares under second
time objection to the BDC of the LE in the form for Second Time objections. The
form for such objections will be of the same format as that of Form BDC - 1B
but the form will be of a different colour (pink colour) and the words “Second
time objection” will be written in bold on the top of the form.
3.
The following documents are required for reporting second time objections.
4.
The documents mentioned in point three above are required to be submitted in a
plastic pouch.
5. The BDC of the LE will forward the shares
under second time company objections to the BDC of the FIE. The BDC of the FIE
will, on receipt of second time company objections, straightaway close-out such
shares (without going through the auction process) as per the close out
procedures in Para 17.3.1 and forward the demand draft/closeout for the
close-out amount to the BDC of the LE who will in turn forward the same to the
LIM.
17.2.5 Corporate
Benefits
1. Members are required to claim corporate
benefits while submitting the bad delivery in form BDC - 1B. Once the claim for
benefits has been made by a member, the member cannot refuse to accept the
corporate benefits.
2. If the market rate of the corporate benefit
is less than the cost of procurement of the benefit then such benefit may not
be taken up for settlement.
3. If the member is not in a position to submit
the corporate benefit in the form of shares then he should submit a demand
draft as per the valuation given in Annexure
- 17.1 along with form BDC - 2B.
4. Rectified/replaced shares shall be accepted
by the BDC of the FIE only if they are accompanied with the corporate benefits
(either in the form of shares or equivalent value in the form of demand
draft/pay order in favour of the LIM) claimed as per form BDC-1B.
17.3 General
Instructions
1. The
exchange should arrange for well equipped and trained manpower to carry out the
activities of the BDC, further it should have a verification officer who will
decide the validity of objections. Since
the quality of decision is critical, the verification officer should be a
senior qualified person.
2. The plastic pouches to be used for reporting
objections should be of good quality and transparent so that the contents can
be viewed from outside.
3. The BDC forms should be placed on top of all
documents inside the pouch so that the details on the form are clearly visible
from outside the pouch.
4.
Members/ stock exchanges should strictly adhere to the formats of the BDC
forms.
5. In case the BDC of the last Exchange does
not receive the rectified/replaced shares or the close-out amount within the
specified time frame, such cases should be referred to the Inter Exchange
Arbitration Panel.
6. The Exchange should maintain a register
which would contain the details pertaining to all objections reported to the
BDC. Separate register should be maintained for local and inter exchange
objections.
7. The Exchange should forward to SEBI monthly
status reports giving details on the objections received, objections resolved,
objections referred for arbitration, value of objections, reasons for
objections, list of companies and Registrar and Transfer agents related to the
objections reported. The above details may be incorporated into the Register.
8. Stock exchanges should get into a contract
with a reliable courier agency for couriering objection documents from one BDC
to the other.
9. Stock exchanges are also required to arrange
for adequate insurance covers for the documents which might be reported as lost
in transit.
10. In cases where odd lot shares reported as
objection are not rectified, such cases will be closed as per close out
procedures.
11. In case the shares reported as objection
fall in the no delivery period, then such shares will not be rectified within
21 days but will become due for rectification only on expiry of the no delivery
period.
12. The members delivering the rectified shares
should ensure that the shares are good delivery as per the Good/Bad delivery
guidelines issued by SEBI. The rectified shares should have a new transfer deed
so that the party receiving the rectified shares can sell the rectified shares
in the market if he so desires, and not necessarily send the shares for
transfer back to the company.
13. BDC will verify the validity of all
objections being sent for rectification or being received after rectification
in case of inter-exchange objections.
14. In case shares are lodged after Book
Closure or Record Date and such shares are returned under company objection
then such objections can be reported to the BDC but no claim can be made for
Corporate Benefits accruing from such shares. Claim of corporate benefits will
be considered only as request matter.
15. In case it is not possible to attach the
original objection memo, a copy of the memo duly certified by the receiving
member should be used.
16. In case where the FIM is the member of an
exchange who has put first stamp on the transfer deed, and he has entered into
a trade through a member of another exchange (meaning that the FIM has a
relationship of client to the second introducing member), in such cases the
objection should be reported against the second member and not against the FIM.
17. In case of defaulters, 25 % of the total
proceeds recovered from the defaulter should be kept aside for a period of
three years from the date of declaring him a defaulter to meet any future
liability arising on account of bad delivery of shares introduced by defaulting
member.
18.
Members may note that the relevant Objection code (as detailed below) should be
stated on BDC-1A, at the time of reporting company objections.
Objection
Code Objection Reason
01 SIGNATURE
MISMATCH
02 OUT-DATED
TRANSFER DEED
03 FAKE/FORGED/STOLEN/MISSING
SHARES
04 ATTACHED BY
INCOME TAX
05 RBI APPROVAL
REQUIRED
06 ALTERATIONS ON
TRANSFER DEED BY IM
07 STOP TRANSFER
SHARES
08 OTHERS
Members
are requested to ensure that the correct objection code is stated on the BDC-1A
form (Annexure 24.11).
19. Members may also note that for objections reported
with reason code '03', no rectification/replacement/ in physical form shall be
allowed. However such objection may be replaced by the introducing member, in
demat form.
17.3.1. Auction / Close Out procedures (Auction/Close
Out Procedures given below shall be subject to the relevant provisions given in
item 19)
1. Local Exchange:
AUCTION: In case the FIM fails to
rectify/replace the shares within 21 days, the exchange will put up the
un-rectified/ un-replaced shares in the immediate auction. The FIM will be debited with the auction
amount and the shares procured in the auction will be handed over by the BDC to
the RM. The amount equivalent to the stamp duty and benefits/claims (if any)
will also be debited to the FIM's account and will be paid to the RM by BDC
directly.
CLOSEOUT: In case, the shares are not available
in the auction conducted, the shares would be closed out at 20% over the
official closing price on the exchange on the day on which auction offers are
called for (and in the event of there being no such closing price on that day,
then the official closing price on the immediately preceding day on which there
was an official closing price) will be taken.
The FIM will be required to forward a cheque
equivalent to the close-out amount, stamp duty and the benefits claimed amount
(if any) to the BDC in favour of the RM.
2.
Inter Exchange:
AUCTION: In case the FIM fails to
rectify/replace the shares within 21 days, the FIE will put up the
un-rectified/un-replaced shares in the immediate auction. The FIM will be
debited with the auction amount and the shares procured in the auction will be
handed over by the BDC of the FIE to the BDC of the LE who will in turn hand
over the same to the LIM. The amount equivalent to the stamp duty and benefits/claims
(if any) will also be debited to the FIM's account.
CLOSEOUT: In case, the shares are not available
in the auction conducted, the shares would be closed out at 20% over the
official closing price on the exchange on the day on which auction offers are
called for (and in the event of there being no such closing price on that day,
then the official closing price on the immediately preceding day on which there
was an official closing price) will be taken.
The FIM is required to forward a demand draft/pay
order equivalent to the close-out amount, stamp duty and the benefits claim
amount ( if any) to the BDC of the FIE in favour of the LIM.
In case the FIM fails to forward the demand
draft to the BDC, the exchange will initiate action against the member as per
rules and regulations of the exchange.
17.3.2 Auction/Close-Out procedures in case of fake/forged/stolen
securities reported under company objection
All cases of company objections pertaining to
fake/forged/stolen securities reported against the introducing member shall be
closed-out by the Clearing Corporation subject to the relevant provisions given
in item 19.
17.3.3 Fee Structure for processing objections through the Bad Delivery
Cell
The exchange will collect from the FIM/LIM a
service charge for processing objections through the BDC. Such service charges
may be collected through pre-paid coupons attached to the objection or through
computerised billing. The service charge will be payable per objection
submitted for the member. The charges should enable the BDC to develop their
own reserve of recyclable funds over a period of time.
17.3.4 Instructions for filling of BDC forms
1. Since the processing of objections will
involve stock exchanges from various parts of the country, it is suggested that
the BDC forms should be filled in English which is accepted by all the Stock
Exchanges as the common business language.
2. The BDC inward no. will be an eight digit
number. The first two digits will the exchange code of the last exchange followed
by a six digit unique serial number.
3. The BDC inward no. assigned to an objection
should be used as a reference number by all the BDC's for all future
communications related to that particular objection.
4. Members are required to use the relevant
objection codes based on the reason for objection as given on the reverse of
the form.
17.3.5 Introducing Member being declared a defaulter
Local Exchange:
In case the FIM has been declared defaulter,
the RM has to file a claim with the Defaulter's Committee/Clearing Corporation
for resolving the claim for company objection.
Inter Exchange:
In case the FIM has been declared defaulter,
the RM will report the objection for rectification to the LIM. The LIM will
rectify/replace the objection and submit the same to the BDC of LE within 21
days as is the normal practice.
The LIM will in turn report the objection for
rectification to the BDC of the LE. The BDC of the LE will forward the
documents under objection to the BDC of the FIE. The BDC of the FIE will
forward the documents to the last member of the FIE for rectification within 21
days. The last member of the first exchange will then file a claim with the
Defaulter's Committee/Clearing Corporation of the first exchange for resolving
the company objection.
In case LIM has been declared defaulter, the
FIM will continue to be responsible for rectification of bad deliveries.
17.3.6 Partial rectification of company objection
In case introducing members are not able to
rectify the complete lot of objections reported, they will be allowed to submit
rectified objections in part provided the rectified quantity is in a market
lot.
In case an odd lot is reported as an objection,
the introducing member is required to rectify/replace either the entire odd lot
or in case of partial rectification, the member is required to rectify in a
market lot.
The introducing member will settle the benefit
claimed in proportion to the quantity of shares rectified/replaced by the
member.
17.3.7.1 Benefit
Claims
Claims for benefits can be made in the
following cases:
a) Where the book closure/record date
(BC/RD) for the corporate benefit claimed has passed before the reporting day,
or
b) where BC/RD for the corporate
benefit claimed falls after the reporting day but before the rectification pay-out day, or
c) Where the BC/RD for the corporate
benefit claimed falls after the rectification pay-out day but within 15 days
from rectification pay-out day.
Illustration:
|
Sr. No. |
Reporting Day |
Rectification Pay-out Day |
Book Closure/ Record Date |
Remarks |
|
a. |
11/3/1996 |
1/4/1996 |
1/3/1996 |
Benefits can be claimed |
|
b. |
11/3/1996 |
1/4/1996 |
20/3/96 |
Benefits can be claimed |
|
c. |
11/3/1996 |
1/4/1996 |
15/4/96 |
Benefits can be claimed |
|
d. |
11/3/1996 |
1/4/1996 |
16/4/96 and later |
Benefits cannot be claimed |
17.3.8 Stamp
Duty
In case objection quantity is replaced or in
case of auction/close out, the receiving member is entitled to claim the stamp
duty already paid by him on the original document. The introducing member will
be required to pay the stamp duty amount based on the official closing price on
the last rectification day or original stamp duty paid by the receiving member,
which ever is higher. The amount of stamp duty paid will have to be specified
on the BDC form by the receiving member at the time of reporting of objections.
In case objection quantity is rectified, the introducing member will be
required to pay the difference amount of, stamp duty based on the official
closing price on the last rectification day over the original stamp duty paid
by the receiving member. In case objection quantity is replaced in demat by the
introducing member, the introducing member will not be required to pay the
stamp duty to the receiving member.
17.3.9 Schedule for Reporting / Rectified Company
Objection.
A typical schedule for reporting and
rectification of objection is given below. The exchanges may design their own
schedule using the typical schedule.
|
Reporting of Objections and Claiming
Corporate Benefits |
Wednesday |
|
|
Date of Intimation to the LIM/FIM |
Friday |
Day1 |
|
Pick up of Objections by the LIM/FIM |
Saturday |
|
|
Reporting Invalid Objections and Corporate Benefit Claims (if
any) by the LIM/FIM |
Thursday |
Day7 |
|
Rectification/Replacement of Objections along
with corporate benefits by the LIM/FIM |
Thursday/ Friday |
Day21 |
|
Rectified Objection Pay-Out to the RM |
Monday |
|
|
Reporting non rectified objections or
objection bad delivery by the RM |
Wednesday |
|
17.3.10 Reporting of Objections by
custodians to the BDC
Custodians who have received the delivery of
securities through the clearing house are entitled to report such objections
for rectification directly to the BDC of the exchange without collecting any
collateral for such shares. In the alternative, if the custodians do not wish
to report objections for securities received through the clearing house to the
BDC, they could handover the securities for rectification to the members
through whom the shares were purchased, in compliance with the guidelines
issued to them from time to time in this regard.
17.3.11 Resolution of disputes
arising between BDC's of two exchanges
SEBI will constitute an Inter-Exchange
Arbitration Panel for settlement of disputes arising between BDC's of two
exchanges. The detailed working of the panel will be intimated to the stock
exchanges in due course.
Item 18
COMPANY OBJECTIONS
PROCEDURES
In pursuance of
Regulation 12 of the Capital Market Regulation, procedures for
rectification/replacement of defective documents in addition to those mentioned
in item 17 are hereby specified as under:
18.1 Market
/ Odd lot cases
The receiving member may either report (i) full
market lot as under objection or (ii) report the odd lot portion alone as under
objection.
Where the member reports the full market lot
the introducing member will be required to replace / rectify the full quantity.
18.2 Receiving
Member Entitled to Benefits
The receiving member is entitled to receive
from the introducing member all the corporate benefits declared by the company
during the period reckoned from the first day of the settlement period in which
he received the document in delivery till the day of receipt of objection
rectified delivery from the Introducing member.
18.3
Procedure for reporting Company
Objections
1. Each objection for rectification is required
to be submitted by the Receiving member (RM) in a plastic pouch.
2. Objections are required to be submitted in
Form BDC - 1A as per the format prescribed by the Exchange, on a paper of
uniform (A4) size.
3. The
security symbol and series (except in cases where the call money has been paid)
should be the same as that appearing on the delivery slip received by the RM.
The RM should ensure that they are reporting the objection against the correct
Introducing Member (IM).
4. Form
BDC - 1A is required to be submitted in triplicate, of which two copies should
be firmly attached on the pouch, and the third copy should be attached to the
lot under objection and placed inside the pouch.
5. A
copy of the delivery slip, delivery detail statement must be attached along
with the second copy of Form BDC - 1A attached on the pouch. In the event of a
member not being in a position to attach the delivery slips and delivery
details statement, the member is required to submit an undertaking to the Clearing
Corporation (per each objection inward no.) in the format enclosed (Annexure - 18). The above undertaking
is to be given only in case of fake/forged/stolen shares reported under
objection and where the introducing member at the Exchange/Clearing Corporation
is other than a defaulter/surrendering/ surrendered/suspended/disabled member
to be informed by the Exchange/Clearing Corporation from time to time.
6. Form BDC-1A should be complete in all
respects. Incomplete forms are liable to be rejected.
7. Where
the number of shares reported as a single objection is large, the distinctive
number ranges (DNRs) must be written on the reverse of Form BDC - 1A or on a
separate paper, which bears the stamp of the RM reporting the objection.
Members are required to ensure that the total number of shares reported as
objection is clearly mentioned on the first page of each copy of Form BDC - 1A.
8. If
all the shares comprising a particular delivery have been introduced by the
same Introducing Member (IM), then the Receiving Member (RM) must report this
as one objection. On the other hand, if the shares comprising the delivery have
been introduced by more than one IM, then the RM must report the objections
separately for each IM, as illustrated below:
Illustration I
|
|
SCRIP |
QTY |
OBJ.DEL.NO. |
DEL.MEM.NO. |
INTRO.MEM. (IM) |
REPORTING REC.MEM. |
|
A |
TISCO |
500, 500 |
411,411 |
6511,6511 |
4563, 4563 |
6077,6077 |
|
B
|
ACC |
800, 200
|
1002,1002 |
8526,8526 |
6123,4724 |
6077,6077 |
In "A" above, the Receiving Member
should report one objection case comprised of 1000 TISCO against IM No. 4563.
In "B" above, the Receiving Member
should report two cases of objection. One case of 800 ACC against IM No 6123
and the other case of 200 should be reported against IM No.4724.
9. Members are required to attach Inward no.
stickers for Company Objections which will be printed at the Clearing
House. The Inward no. stickers are
required to be affixed on all the three copies of form BDC - 1A.
10. In cases where the seller delivers the
shares in market lots but the receiving member lodges the shares for transfer
with a jumbo transfer deed and the receiving member is not in a position to
return all the original transfer deeds submitted with each market lot whilst
reporting company objection, the receiving member is required to give an
undertaking indemnifying the introducing member in the event of the said
original transfer deed(s) being misused at any future date in the prescribed
form 6J
11. In case where the First Introducing Member
(FIM) is an NSE member and the objection has been lodged on him by the RM,
however the objection has been withdrawn by the FIM on ground of insufficient
details, the RM then has an opportunity to re-lodge the objection on the FIM
after procuring the relevant documents, within 1 (one) year from the date of
first lodging the objection on the FIM.
18.4 Procedure
for Rectified Company Objections
1.
IM's are required to submit rectified / replaced objections along with benefits
(if any) in plastic pouches.
2.
IM's are required to ensure that the Inward no. on Form BDC - 1A is the same as
the Inward no. on both the delivery slip and the delivery detail statement.
3.
The rectified / replaced objections are required to be submitted along with the
following documents:
a.
Delivery Slip, Delivery detail statement each in duplicate.
b.
Form BDC 2A, if benefits are attached (
in triplicate ).
c.
Form BDC - 1A, along with the rectified / replaced shares.
d.
Company Memo.
4. One copy of the delivery slip, delivery
detail statement, Form BDC 2A is required to be attached on the pouch while the
second copy of delivery slip, delivery detail statement, Form BDC 2A and Form
BDC - 1A along with rectified / replaced shares, company memo are required to
be placed inside the pouch.
5. The rectified/replaced company objection
shares and the benefits due i.e. shares (if any), are required to be enclosed
in the same pouch. The lot should be so placed in the pouch that the delivery
slip, delivery details statement, are clearly visible, without having to open
the pouch.
6. In case objections are rectified in part, it
is required by the IM to follow the same procedures as mentioned in
7. The rectified /replaced lots should be
arranged in the same order as they appear on the Final Delivery Statements
(FDS).
8. Where the shares are replaced, the word
“REPLACED” must be written in bold on all copies of the delivery slip &
delivery detail statement. If rectified, the words “RECTIFIED" must be
written on all copies of the delivery slip & delivery detail statement. If
a lot is partly rectified and partly replaced, then the delivery slips
(clearing house and RM copies) should be marked as illustrated below:
Illustration II
Objection
500 shares of this, 300 are replaced and 200 rectified.
The
delivery slips is required to be marked as under:
"200 RECTIFIED +
300 REPLACED"
9. For rectified shares, if the IM furnishes a
new TD, the old transfer deed bearing the transfer stamps and a copy of company
objection memo are required to be attached to the lot. If old transfer deeds
are not attached, then value of transfer stamps will be debited to the IM.
10. Receiving Members are required to verify
and count the rectified/replaced shares to ensure the correctness of quantity
received by them, before leaving the Clearing House.
18.5 Procedure
for reporting Un-rectified Company Objections
1.
Un-rectified company objections are required to be reported in Form 6E.
18.6 Procedure
for Reporting Second Time Company Objections
1.
Members are required to fill up a fresh Form BDC - 1A ( in triplicate ) for
reporting Second time objections and follow the same procedure as outlined in
Para A1-A4.
2.
Members are required to take fresh Inward no. stickers for second time
objections.
3.
"Second Time Company Objection" must be written in bold on each copy
of Form BDC - 1A.
4. The share certificates, transfer deeds,
company objection memo for second time objection, in addition to original Form
BDC-1A and delivery details statement pertaining to first time objection are
required to be submitted for reporting second time objection.
18.6.2 Procedure for reporting second time company
objections wherein the old transfer
deed for first time objection is not present
Where securities which are lodged by receiving
member as company objections for reason of signature difference, are returned
to the receiving member after rectification, and such rectified securities are
again lodged by the receiving member as company objection for the reason of the
securities being stolen securities, then in such case, the receiving member is
required to report the objection against the delivering member from whom the
securities were originally received along with documents as required under Item
18. The delivering member would then be required to withdraw the objection as
detailed in Item 18.8 along with details of the member from whom they had
received the securities and additionally enclose copy of the delivery slip and
delivery details statement.
In the event of the delivering member being
unable to provide the delivery slip and delivery details statement as proof of
having received the shares on the Exchange, such delivering member shall be
treated as the introducing member for such documents, and the objection shall
be processed accordingly.
18.7 Procedure for reporting partly paid shares
traded as fully paid up.
Securities which were traded as partly paid are
required to be reported under objection with symbol/series of the new security.
The receiving member (RM) is required to submit necessary documents as proof of
having paid the allotment money/call money as may have become due and payable
at the time of reporting the objection.
In case where the allotment/ additional call money has not been paid,
the RM shall be required to enclose a demand draft (payable at Mumbai)
equivalent to the allotment/call money amount in favour of the introducing
member (IM), along with the company objection lodged against the IM with the
Clearing House. The IM shall then be required to rectify/replace the shares
within the prescribed time of 21 days, failing which, auction/close-out
procedures as per the provisions of item 9 and item 19 of this circular.
18.8 Procedure for Handling Withdrawal of
Company Objections.
1. Request for withdrawal of company
objection/corporate benefits is required to be made in the prescribed Form BDC
3A along with a copy of Form BDC - 1A.
2. Withdrawals are required to be reported for
the entire quantity under objection within seven days of scheduled pick up of
company objection for rectification.
3. In case of objections which have been
withdrawn, the IM is required to submit the acknowledgement copy of the withdrawn
objection (Form BDC 3A) on the due date for rectification (21st day) to the
Clearing Corporation. Failure on the
part of the IM to report these cases by the due date may lead to auction of the
securities against the IM.
4. The IM should mention all the reasons for
withdrawal in respect of the company objection reported at the first instance
itself. All subsequent requests for
withdrawal of company objection for reasons not mentioned at the time of first withdrawal,
in respect of the said case may not be accepted by the Clearing Corporation.
18.9 Procedure
for reporting Fake/Forged/Missing/Stolen shares
1.
The following documents are required to be lodged in triplicate in separate
pouches:
·
Form BDC - 1A bearing rubber stamp - 'FAKE/FORGED/STOLEN' in bold.
·
Delivery Slips and Delivery Details Statement of receipt of shares by the RM.
·
Original transfer deed (photocopy where original retained by the company/share
transfer agent).
·
Share Certificates (photocopy where original retained by the company/share
transfer agent).
·
Original Company Objection Memo or Certified copy of the memo.
·
In case of fake/forged/stolen/misplaced shares, all documents as given in SEBI
Good/Bad Delivery Guidelines no. 108/109 (as per item 14)
2 Members are required to affix rubber stamp
bearing words 'FAKE/FORGED/STOLEN' on top right hand portion of form (BDC-1A)
for reporting fake/forged/stolen/misplaced shares under company objection.
3 In addition, two copies of Form BDC - 1A are
required to be attached on the pouch which contains the original documents.
18.10 Procedure
for reporting company objections against Defaulters/Suspended/
Surrendering/Expelled members
1. Where the FIM has been declared a defaulter
or is an expelled member, the RM has to lodge the claim / objection within six
months from the date of the objection memo or six months from the date the
member is declared a defaulter /expelled from the Exchange, whichever is later.
2. The following documents are required to be
lodged:
· Form BDC - 1A bearing rubber stamp - 'DEFAULTER/ SUSPENDED MEMBER/
SURRENDERING MEMBER/ EXPELLED MEMBER' in
bold
· Delivery Slips and Delivery Details Statement
of receipt of shares by the RM
· Original transfer deed (photocopy where
original retained by the company/share transfer agent).
· Share Certificates (photocopy where original
retained by the company/share transfer agent ).
· Original Company Objection Memo or Certified
copy of the memo.
· In case of fake/forged/stolen/misplaced
shares, all documents as given in SEBI Good/Bad Delivery guidelines no. 108/109
(as per item 14 )
· 4 sets of all above documents in case of
fake/forged/stolen/misplaced shares and in triplicate for all other cases of
company objections in separate pouches.
3. Members are required to affix rubber stamp
bearing words 'DEFAULTER/SUSPENDED
MEMBER/ SURRENDERING MEMBER/ EXPELLED
MEMBER' on top right hand portion of form (BDC-1A) for reporting
company objections against defaulters/suspended members/surrendering
members/expelled members.
4.
In addition, two copies of Form BDC - 1A are required to be attached on the
pouch which contains the original documents.
5. (i) For company objections to be reported
against defaulters/ suspended members/ expelled members, the receiving member
is required to report the same against the clearing member whose pay-in stamp
appears subsequent to the defaulter/ suspended member/ expelled member on the
transfer deed attached to the shares under objection.
(ii) The subsequent member may withdraw the
company objection by providing the delivery slips and delivery details
statement of receipt of these shares from the defaulter/suspended
member/expelled member through the Clearing House.
(iii) If the subsequent member withdraws the
company objection by providing the required delivery slips and delivery details
statement of receipt of these shares from the defaulter/suspended
member/expelled member through the Clearing House, then the receiving member is
required to report the company objection against the defaulter/suspended
member/expelled member along with the delivery slips and delivery details
statement received from the subsequent member as per point 4 (ii) mentioned
above and the documents specified in point 1 mentioned above.
(iv) However, where the receiving member
reporting the company objection, had received these shares directly from the
defaulter/suspended member/expelled member through the Clearing House, then the
receiving member can report the company objection against the
defaulter/suspended member along with the copies of delivery slips and delivery
details statement of receipt of these shares from such defaulter/suspended
member/expelled member and the documents specified in point 1 mentioned above.
(v) In
case of company objections reported against Introducing Members, which are
pending close out by the Clearing Corporation, shall be withdrawn by the
Clearing Corporation, when such members are subsequently declared
defaulter/suspended/expelled members. The Receiving Members shall then be required
to report the same against the member whose pay-in stamp appears subsequent to
such defaulter/suspended member/ expelled member, on the reverse of the
transfer deed. The subsequent member may withdraw the objection as per item
18.10 (5) by giving copy of the delivery details statement proving that the
shares have been received from the defaulter/suspended member/ expelled member
through the Clearing Corporation. Thereafter, the receiving member would be
required to lodge the objection against the defaulter/suspended member/
expelled member, enclosing the delivery details statement, within 1 month of
withdrawal of objection by the relevant subsequent member.
Such re-reported objections against
defaulter/suspended member/ expelled members shall not be withdrawn for the
reason of "objection memo outdated", provided documents establishing
that the objection has been originally lodged against the defaulter/suspended
member/ expelled members, within the stipulated time, with valid documents, are
provided.
6. Upon the public notification of the
surrender of the trading membership and within eight (8) months from the date
of such notification, all trading members/clearing members shall report company
objections, if any, against such surrendering trading members to the Clearing
Corporation.
18.11 Procedure for handling Corporate Benefits
1. Members are required to claim corporate
benefits while submitting their shares for company objections in the revised
form BDC - 1A in triplicate. Once a
claim for benefits has been made by a receiving member, the receiving member
cannot refuse to accept the corporate benefits. ( e.g. Claim for right shares
etc.)
2. All details related to benefits claimed must
be correctly filled up on Form BDC - 1A failing which the benefits claimed may
not be settled. All incomplete forms are
liable to be rejected.
a. In case of claims for bonus/rights shares,
the quantity claimed, ratio of benefits, rights issue price, book
closure/record date, security symbol are required to be filled up on Form BDC -
1A.
b. In case of dividend claims, details of
dividend rate, financial year, type of dividend (whether interim or final),
quantity, book closure/record date, are required to be filled up on Form BDC -
1A.
3. In case of multiple benefits being claimed
against the same objection, members must ensure that each benefit is stated
separately on Form BDC - 1A. Where the
value of two or more benefits (for the same objection) has been claimed, then
each benefit must be stated separately on the same Form BDC - 1A.
Illustration I
Dividend
due on 200 shares of ABC Ltd.
a.
Interim - for 1992-93 @ Rs.2/- per share = Rs.400/-.
b.
Final - for 1992-93 (excluding interim dividend) @ Rs.3/- per share = Rs.600/-.
In
the above case, each amount should be stated separately.
4.
Claims for benefits can be made in the following cases:
a. where the book closure/record date (BC/RD)
for the corporate benefit claimed has passed before the reporting day, or
b. where BC/RD for the corporate benefit
claimed falls after the reporting day but before the rectification pay-out day,
or
c. where the BC/RD for the corporate benefit
claimed falls after the rectification pay-out day but within 15 days from
rectification pay-out day.
Illustration II
|
Sr.No |
Reporting Day |
Rectification Pay-out Day |
Book Closure Record Date |
Remarks |
|
a. |
11/03/96 |
01/04/96 |
01/03/96 |
Benefits can be claimed |
|
b. |
11/03/96 |
01/04/96 |
20/03/96 |
Benefits can be claimed |
|
c. |
11/03/96 |
01/04/96 |
15/04/96 |
Benefits can be claimed |
|
d. |
11/03/96 |
01/04/96 |
16/4/96 and later |
Benefits cannot be claimed |
5. If in the view of the IM the claim is not
valid, the IM should revert to the Clearing House within seven days from the
intimation day.
6. All monetary corporate benefits viz.,
dividend, interest and redemption amount claim on company objections claimed by
the RM while reporting objections shall be debited/credited directly in the
clearing account of the clearing members by the Clearing Corporation. The equivalent value of the benefits (as per Annexure - 17.1) claimed by the
receiving member shall be debited by the Clearing Corporation to the account of
the IM and the credit for the same shall be given to the respective RM along
with the close-out of objections for the settlement.
7. In case of non-monetary benefit claims viz.,
bonus and rights, the IM may submit corporate benefit in the form of shares
along with rectified/replaced shares. In
case the IM does not submit the corporate benefit in the form of shares along
with the rectified/replaced shares, the equivalent value of the benefits (as
per Annexure-17.1) claimed by the
receiving member while reporting objections, shall be debited by the Clearing
Corporation to the account of the IM and the credit for the same shall be given
to the respective RM along with the close-out of objections for the settlement.
The introducing member will submit the non-monetary benefits claimed in
proportion to the quantity of shares rectified/replaced by the member.
8. Members are required to affix a rubber stamp
bearing words 'Bonus/Rights enclosed' on the delivery slips, at the time of
submitting the rectified/replaced shares, for cases where the shares are
submitted as corporate benefits.
9. Members should not enclose cheques towards
payment of corporate benefits (except cheques for non pari-passu shares) along
with rectified/replaced shares. Wherever such cheques are attached, they shall
be ignored and are required to be returned by the RM for cancellation.
10. In case of Rights (Equity, FCD,
PCD-Convertible portion) if the IM gives corporate benefits in the form of
securities, the IM will make a claim for the Rights Issue amount in the
prescribed form BDC-2A in triplicate. The form BDC-2A will be submitted to the
Clearing House along with the rectified company objections on the rectification
day.
11. The form BDC-2A (two copies) will be issued
by the Clearing House to the RM along with the pay-out of rectified shares. The
RM is required to give a cheque (amount equal to the Rights Issue amount as
mentioned in form BDC-2A) to the Clearing House in favour of the IM. The cheque should be attached to form BDC-2A
and the cheque details should be filled in Part-B of Form BDC-2A.
12. Where benefits in the form of securities
are submitted along with rectified/replaced shares, the members should fill up
the relevant portion of Form BDC-2A. IM may submit the total number of shares
as corporate benefits. In case of part delivery of corporate benefits in the
form of securities, the delivery must necessarily be in market lots.
13. Acknowledgement for non-monetary benefits
submitted in the form of securities along with rectified/replaced shares shall
be given on Form BDC-2A (IM copy).
14. Corporate benefits declared by the company
after the receipt of delivery of rectified objections are to be settled through
pending corporate benefit cycle announced by the Clearing Corporation from time
to time.
18.12 Fake/forged SEBI registration rubber stamp
In case of fake/forged SEBI registration rubber
stamp, members are required to give an undertaking to the Clearing Corporation
stating that the rubber stamp impression appearing on the reverse of the
transfer deed does not belong to the member and that the said rubber stamp is
fake in the prescribed form 6I (format enclosed).
However, if it is subsequently proved that the
securities have indeed been introduced by the said member, then such cases will
be reported to the Disciplinary Action Committee and the shares will be closed
out immediately without intimation to the member. The member will not be given the mandatory
period of 21 days to rectify the said shares, once the undertaking is given by
him.
18.13 Procedure for reporting Objection
Bad / Benefit Bad Cases
1. Members are required to report Objection
bad/ Benefit bad cases within 48 hours of the scheduled pay-out of such shares.
2. Members are required to submit the following
documents along with form BDC-4A for submitting shares as objection bad or
benefit bad.
a.
Form BDC - 1A along with transfer deeds and share certificates.
b.
Delivery slip and delivery detail statement received along with the
rectified/replaced company objection
lot.
c.
Company Objection memo.
d.
Form BDC 2A (in triplicate) for benefit bad cases, in addition to documents
mentioned above.
18.14 Schedule for reporting and
rectification of objection
The
following schedule for reporting and rectification of objection will be
effective with immediate effect:
|
Reporting of Objections and Claiming
Corporate Benefits |
Tuesday /Wednesday |
|
|
Date of Intimation |
Friday |
Day 1 |
|
Pick up of Objections |
Saturday |
|
|
Reporting Invalid Benefit Claims (if any) |
Thursday |
Day 7 |
|
Price for valuation |
|
Day 19 |
|
Rectification/Replacement of Objections along
with corporate benefits |
Thursday/ Friday |
Day 21 |
|
Rectified Objection Pay-Out |
Monday |
|
The
provision for computation of equivalent value is given in Annexure -17.1.
18.15 Transfer of debit for company objection cases
falling under clause 100 of Uniform Good/Bad guidelines of SEBI, where the
introducing member on the previous transfer deed is also an NSE member
In case of a company objection as per clause
100 of SEBI good/bad delivery norms, where the first introducing member on the
previous transfer deed is also an NSE member, the debit borne by the
intermediate introducing member on account of the close-out of processes, shall
be transferred to the first introducing member, on the previous transfer deed.
Members are required to submit details of the
objection reported against them earlier along with share certificates, copy of
transfer deed where client is the transferee, copy of old transfer deed where
their client is the transferor, original company objection memo, original form
BDC - 1A pertaining to the objection lodged on them, delivery details statement
pertaining to first time objection, delivery details statement of the shares
having been received by them, auction square-up debit statement, to enable
NSCCL to transfer the debit borne by the intermediate introducing member to the
first introducing member.
18.16 Valuation of un-rectified company objections
pending close-out against disabled member, subsequently declared
defaulter/expelled
In cases wherein the company objections
reported against a disabled member have not been closed-out and the member is
subsequently declared a defaulter/expelled, all objections pending close-out
are referred to the Defaulters'
Committee.
All
company objections reported against defaulters/expelled members shall be valued
at either of
a) The closing price as on the date of
declaration of default/expulsion, or
b)
The closing price as on the date on which the objection was reported to the
Clearing House, Whichever is later.
18.17 Company Objections reported against
Surrendering members
1. All the surrendering members shall
co-ordinate and obtain information from the Clearing Corporation on a weekly
basis, any instance of company objection(s) reported against them by other
trading members.
2. The company objections reported against such
surrendering members will be initially valued by the Clearing Corporation based
on the notional price. The surrendering member shall be required to remit the
notional amount so calculated, by the prescribed date and such objections shall
be closed out as per procedures. Any negative difference arising between the
close-out price and the notional price shall be payable by such surrendering
member to the Clearing Corporation, and where such difference is positive,
surrendering member shall be given due credit by the Clearing Corporation.
3. The notional price in all such matters will
be closing price of the relative securities as on the date of reporting of the
company objection or the closing price on the day last traded of the relevant
security.
4. The respective surrendering member shall
meet all such obligations by remitting the relevant amount to the Clearing
Corporation within the stipulated 21 days from the date of reporting of such
company objections, or within 10 days of intimation, of the notional amount
payable, given to such surrendering member by the Clearing Corporation,
whichever is earlier.
5. In the event of the surrendering member not
meeting their obligations, such company objections would be met out of the
deposits of the surrendering member. Consequently, if 85% of the value of the
interest free cash security deposits and the available security deposit gets
utilised, and if the member does not bring in funds to meet the balance company
objections, then such surrendering member shall render himself liable for the
Exchange/Clearing Corporation initiating the process of declaring such
surrendering member a defaulter.
6. Upon such surrendering member being declared
a defaulter, all the process and procedures applicable to that of a
surrendering member shall cease forthwith and the relevant process pertaining to
a defaulter shall ipso facto commence/apply.
18.18 Company Objections valued at more than Rs. 20
lakhs
In cases wherein the value of company objection
reported against the introducing member (IM) is greater than Rs. 20 lakhs, the
company objection documents shall be withheld by the Clearing Corporation. The
withheld documents would be released if the IM complies with either of the
following:
1.
Deposits an amount with the Clearing Corporation, equivalent to the value of
company objection reported against them
2.
rectifies/replaces the securities reported under company objection
Item 19
DOCUMENT AND
REGISTRATION
In pursuance of
Regulation 12 of the Capital Market Regulation, procedures for
rectification/replacement of defective documents in addition to those mentioned
in item 17 are hereby specified as under:
The original selling member (referred to as the
'introducing member') who is the first to deliver defective documents in NSE is
responsible for rectifying defective documents ('objection cases') to the
receiving member.
19.1 Market
/ Odd lot cases
Where the member reports an odd lot as under
objection, if the same is not rectified/replaced within the required period, it
will be squared-up as per Regulations regarding squaring up.
19.2 Un-rectified
Objection Cases
19.2.1 Valuation of Un-rectified Objection Cases
At the end of the 21 day period (as per the
schedule given in item 18), all objection cases which have not been
rectified/replaced (un-rectified objections) shall be valued at the relevant
valuation price.
If the value of the un-rectified objections is
more than Rs.5 lakhs, the introducing member shall be required to pay-in the
full value of the un-rectified objections (valuation debit) on the day
following the objection rectification day.
19.2.2 Failure to Pay Valuation Debit
If the introducing member fails to pay-in funds
on the due date of valuation debit, the limits of the member may be reduced by
the relevant authority in such manner and to such extent as it may deem fit.
19.2.3 Limits
If the value of objections (after adjusting for
objection withdrawals) is more than 50% of the net cash component of base
capital available as defined below, then the limit for the introducing member
shall stand reduced by 8.5 times the value of objection cases.
Where the value of objections (after allowing
for withdrawals) is more than 50% of the net cash component of base capital
available then the member may replace/rectify cases before the 21 day period.
To the extent objection cases are replaced/rectified, the limits may be
adjusted proportionately.
Members may deposit additional margins in the
form of cash, bank guarantees or eligible securities towards objection cases.
Limits may be adjusted proportionately. Such margin deposits are required to be
kept with the Clearing Corporation for a minimum period of 1 month.
19.2.4 Un-rectified objections
If the defective documents are not
rectified/replaced on or before the 21st day and the introducing member fails
to pay-in funds on the due date of the above valuation debit, then the Clearing
Corporation shall close-out the un-rectified part of the defective documents as
given below:
The Clearing Corporation shall close-out the
value of un-rectified objections only up to 85% of the net base capital of the
member. The member is required to bring in funds towards the objections which
are closed-out by the Clearing Corporation by the prescribed (funds pay-in)
date. In the event where the value of un-rectified objections exceeds 85% of
the net base capital and the introducing member fails to bring in additional
funds to replenish the deposits depleted, such objections shall not be
closed-out and such member shall be liable to be declared a defaulter by the
Exchange/Clearing Corporation.
Net Cash Component of Base Capital
For the purpose of this item, the net cash
component of base capital shall mean the base capital of the clearing member
which is in the form of cash deposits after adjusting for any funds due from
the member to the Clearing Corporation or Exchange.
Net Base Capital
For the purpose of this item, the net base
capital shall mean the base capital of the clearing member after adjusting for
any funds due from the member to the Exchange or the Clearing Corporation.
19.3 Rectified / Replaced Objections Cases which
are Bad Delivery
Rectified / replaced objections cases which are
reported as bad delivery will be squared up as per Regulations regarding the
same.
19.4 Rectified
Objection Cases which are under Objection
19.4.1 Close out
Objection cases rectified which are again
reported as under objection will be immediately closed out between the original
introducing member and the original receiving member as per Regulations
regarding the same. In the case of corporate benefits the original introducing
member shall be responsible for the corporate benefits to the original
receiving member.
Item 20
FAKE/
FORGED/STOLEN CERTIFICATES
In pursuance of
Chapter VI-B of the Byelaws and Regulation 12.7.1 and 12.14 of the Capital
Market, the clearing members are required to comply with the following
procedures in case where fake/ forged/ stolen securities are reported against
clearing members:
20.1 Once a fake/ forged/ stolen case is
reported as a company objection, the introducing member shall not any further
deal with the client who delivered the fake/ forged/ stolen securities as
directed earlier. Any contravention of this shall be viewed as a serious
violation and the Clearing Corporation may initiate such action as it may deem
fit in this regard which may inter alia include withdrawal of the trading
facility provided to the member.
20.2 The introducing clearing member shall provide
to the Clearing Corporation, complete details of all securities received from
the client (whose securities have been reported as fake/ forged/ stolen
securities) delivered through the clearing house together with full details of
the client including name, address, photograph, copy of client agreement, name
and address of the person who introduced the client delivering the fake/
forged/ stolen securities to the clearing member and bank account details of
the client within 14 days of date of intimation of the company objection.
20.3 The three-month period referred to
hereinafter shall start from April 1998 and end on June 30, 1998 and thereafter
the three-month periods shall be computed every three months. For example, July 1, 1998 to September 30,
1998, October 1, 1998 to December 31, 1998 and January 1, 1999 to March 31, 1999
and so on.
20.4 Fake/ forged/ stolen securities equal to or
exceeding Rs. 5 lakhs
20.4.1 If, within a three-month period as
prescribed in clause (3) above, the cumulative value of fake/ forged/ stolen
securities reported against the clearing member hereinafter referred to as
‘reported value' exceeds Rs. 5 lakhs, then such clearing member shall, within
14 days from the date of intimation of the company objection, report to the
Clearing Corporation, details of all securities delivered by the member on
behalf of the clients who delivered fake/ forged/ stolen securities.
20.4.2 If, within a three-month period as
prescribed in clause (3) above, the 'reported value' exceeds Rs. 5 lakhs, then
such clearing member shall, within 14 days from the date of intimation of the
company objection, deposit an amount equal to the 'reported value' in the form
of cash, bank guarantee or FDR. For such clearing member, the base capital
shall stand reduced by the 'reported value' and the limits shall stand reduced
accordingly till such deposit is brought in. Further the members may be called
by the Sub-Committee of the Executive Committee of the Exchange and asked to
explain the incidence of fake/ forged/stolen securities in a personal hearing.
If the explanation given by such clearing member is unsatisfactory, the trading
facility may be withdrawn.
20.4.3 Irrespective of the amount of fake
/forged /stolen securities reported against the member, the Clearing
Corporation may independently assess the value of fake/ forged/ stolen
securities likely to have been delivered through the members hereinafter
referred to as 'estimated value', in respect of any member as it may deem fit. The assessment of the Clearing
Corporation of the 'estimated value' shall be final for this purpose.
20.4.4 If the 'estimated value' exceeds Rs. 5
lakhs, then such clearing member shall, within 14 days from the date of
intimation of the same, deposit an amount equal to the 'estimated value' in the
form of cash, bank guarantee or FDR. For such clearing member, the base capital
shall stand reduced by the 'estimated value' and the limits shall stand reduced
accordingly till such deposit is brought in.
20.5
The deposit shall be released/ the base capital may be restored, at the
end of the subsequent two 'three-month periods' (six month period), provided
the 'reported value' in the subsequent two 'three-month periods' does not
exceed Rs. 5 lakhs.
20.6 Introducing clearing members shall
file a police complaint/ FIR against the client who delivered the fake/ forged/
stolen securities to the clearing member, within 30 days from the date of
intimation of company objection for fake/ forged/ stolen securities and produce
proof thereof to the Clearing Corporation. Where introducing clearing members
have not filed a police complaint/ FIR against the client who delivered the
fake/ forged/ stolen securities to the clearing member within such period and
(a) the 'reported value/ estimated value' exceeds Rs. 5 lakhs and (b)
individual claim is more than Rs. 1 lakh, trading facility which has been given
by the Exchange to such trading/ clearing members may be withdrawn and the
Clearing Corporation may initiate disciplinary action as it may deem fit
20.7 If the 'estimated value' or 'reported value'
within any three-month period (a)
exceeds Rs. 2.5 lakhs, and 1% of average delivery values of the clearing member
for the preceding two three-month periods, or
(b) Rs. 12.5 lakhs, then the member shall be disabled from participating
in any auction till the last date of the subsequent three-month period.
20.8 Deliveries received from other
stock exchanges
In respect of securities received from other
stock exchanges and delivered on NSE which are subsequently reported as fake/
forged/ stolen securities, the introducing member on NSE shall furnish evidence
of having received the delivery from a recognised member of the other stock
exchange to the satisfaction of the Clearing Corporation. Such deliveries may
be excluded from the computation of value of fake/ forged/ stolen securities
for such clearing member. Deliveries arising out of a spot transaction between
the members shall not be excluded for such computation.
Further,
the original introducing member on NSE shall provide following details to the
Clearing Corporation:
Objection
details
Objection
Inward No. (On NSE)
Security
symbol
Series
Quantity
Other Exchange details
Stock
Exchange from where securities were received
Name
and SEBI registration code of delivering member
of
other Exchange from whom securities were received
Settlement
Number and Date of receipt of securities on other Exchange
Security details
Certificate
no.
DNR
(from)
DNR
(to)
In
addition, the clearing member shall submit copies of following documents:
·
Form BDC-1A ( Annexure 24.11)
pertaining to the said objection inward number
·
Receipt statement from the stock exchange showing above details certified by
the Stock exchange concerned.
Clearing Corporation may exclude such
deliveries from other Exchanges from the computation of value of fake/ forged/
stolen securities for such clearing member provided they are not spot
transactions between members but have been received through normal exchange
settlement.
20.9 The Clearing Corporation shall
determine from time to time the date and prices for valuation of the fake/ forged/ stolen
securities reported against clearing members. In the normal course, the latest
closing price will be taken into consideration for the valuation.
20.10 All cases of company objections
pertaining to fake/forged/stolen securities reported against the introducing
member shall be closed-out by the Clearing Corporation subject to the
provisions of clause 19.2 of item 19.
20.11 Verification of
securities
Members are advised to get the securities
verified by the respective company/ registrars regarding the genuineness of the
certificate before delivering the same on the Exchange. In cases where the
company/ registrar confirms that the securities are fake/ forged/ stolen,
members are required to report such cases to the Clearing Corporation along
with a letter from the company/ registrar and other relevant documents.
In case the securities received by the
receiving member from the delivering member in normal pay-out are found to be
fake/ forged/ stolen, the receiving member is required to report the same as
bad delivery in the bad delivery cycle against the delivering member.
The delivering member shall be required to
replace such securities by the prescribed pay-in day for rectification of bad
delivery, failing which the securities shall be closed out as per procedures.
Once the identity of the introducing member is established the auction / square
up amount debited to the delivering member shall be recovered from the
introducing member or the delivering member may subsequently report such securities
as company objection against the introducing member as per the existing
procedures.
However, if the securities detected as fake/
forged/ stolen are delivered by a member who also happens to be the introducing
member on the NSE, such securities shall be marked as short delivery and
directly closed-out.
20.12 Verification of deliveries for Lost/
Misplaced/ Fake/ Forged/ Stolen shares
Members are required to provide details of all
deliveries submitted to Clearing House in 3.5" floppy diskettes in the
prescribed format. In cases where shares in the said deliveries are found to be
lost/ misplaced/ fake/ forged/ stolen shares as per the system implemented by
NSCCL for this purpose, the procedure for reporting and replacement of such
deliveries are given below:
Normal Settlement
Upon detection of the share certificates
through the database maintained by the Clearing Corporation out of the data
provided by the companies/STAs, the delivering member, the introducing member
and the receiving member will be informed about the said share certificates and
the introducing member and the delivering member will be advised to get a
confirmation from the company/STAs for the said shares within ten days. The
share certificates shall be sent to the company/STA for pre-verification or
such pre-verification be carried out by the authorised representative of the
company/STA in the Clearing House and objection memo, wherever such share
certificates are confirmed to be defective in title, be obtained from the
company/STA.
Delivering
Member and Introducing Member are same
If the delivering member does not furnish any
information/ proof confirming such share certificate(s) being good delivery
within the above specified period, the same shall be closed-out against the
delivering member.
Delivering
Member and Introducing Member are different
If the delivering member does not furnish any
information/ proof confirming such share certificate(s) being good delivery
within the above specified period, the same shall be closed-out against the
delivering member. The close-out debit so incurred by the delivering member
will be passed onto the introducing member, within a reasonable period.
Auction, Rectified/Replaced Bad
Delivery, Rectified/Replaced Company Objection
Upon detection of the share certificates as per
procedures detailed above, the delivering member and the introducing member
shall be informed about the said share certificates. The share certificates
shall be sent to the company/STA for pre-verification or such pre-verification
be carried out by the authorised representative of the company/STA in the
Clearing House and objection memo, wherever such share certificates are
confirmed to be defective in title, be obtained from the company/STA.
Delivering
Member and Introducing Member are same
The
shares shall be closed-out against the delivering member
Delivering
Member and Introducing Member are different
The shares shall be closed-out against the
delivering member. The close-out debit so incurred by the delivering member
will be passed onto the introducing member, within a reasonable period.
Item 21
CERTIFICATION OF
GOOD/BAD DELIVERY
In pursuance of
Regulation 7 and 12 of the Capital Market Regulation procedures for
certification of good/bad delivery are hereby specified as under:
21.1 Procedure to be followed for Good/Bad
delivery certification.
Members against whom bad deliveries are
reported and who require certification from the Clearing Corporation regarding
the good/bad delivery of the said documents are required to affix good/bad
delivery memo coupon for Rs 30/-. Members are required to affix such coupons
only in cases which need certification from the Clearing Corporation.
The deliveries which have originated from a
different Regional Clearing Centre (i.e. where the delivering centre and the
receiving centre is not the same); the receiving member shall be required to
report the bad deliveries at Mumbai - Clearing Centre. The certification of good/ bad deliveries for
these deliveries shall also be done at Mumbai - Clearing Centre only. However in cases where the delivering centre
and the receiving centre are the same, the certification of good/bad deliveries
shall be done at the respective RCC's.
In such a case, members are required to submit
the following documents for good/bad delivery certification.
1. Bad delivery memo coupon
2. Prescribed Form 6B1 (in duplicate)
3. Original transfer deed and
share/debenture/bond certificate
4. One photocopy of each transfer deed and each
share/debenture/bond certificate
5. Photocopies of delivery slip and delivery
details statement
6. Members are required to submit documents
mentioned in points 1 and 2 in a plastic pouch.
An additional copy (third copy) of form 6B-1 should be attached outside
the pouch.
7. Members are required to affix a good/bad
delivery memo coupon of Rs. 30/- for each delivery. The coupon should be
affixed on the duplicate copy which will be retained by the Clearing
Corporation. The documents shall be returned to the members after due
certification by the Clearing Corporation.
8. The clearing house will affix inward nos. on
Form 6B-1.
9. Members are required to attach copy of form
6B-1 duly certified by the Clearing Corporation, to the transfer deed and share
certificate every time the same sets of documents are delivered in the market.
21.2 Procurement
of Bad delivery memo coupon
1.
The coupons for certification of good/bad delivery will be available from the
Clearing Corporation.
2.
The value of each coupon is Rs. 30/-. One coupon book contains 50 such
coupons.
3. Members may procure the good/bad delivery
memo coupon book from the Clearing Corporation
by submitting a demand draft for Rs. 1500/- ( per coupon book) favouring
'National Securities Clearing Corporation
Limited' payable at Mumbai.
4. Any request for certification of good/bad
delivery will not be entertained by the Clearing Corporation unless the above
procedures are complied with.
5. Members shall ensure that a photocopy of the
certification issued by Clearing Corporation is always attached to the
certified documents whilst redelivering the documents in future settlements, to
avoid any subsequent receiving member raising bad delivery on the same
count/reason.
Item 22
REQUEST CASES & BAD DELIVERIES
In pursuance of
Regulation 7 of the Capital Market, revised procedure for reporting and
rectification of request cases are hereby specified:
22.1.1 Revised procedures for handling Request
cases:
1.
Members are required to report request cases to the Clearing house in
plastic pouches as per the schedule given below.
2.
Members are required to report request cases with original documents
(transfer deeds and share certificates) for normal request cases and with
photocopies of the relevant documents for dividend request cases.
Notwithstanding what has been stated
hereinabove regarding reporting of non pari passu dividend request cases with
photocopies of transfer deed and share certificates, the Clearing Corporation
may, on a case by case basis, waive such requirements in cases where
information regarding non pari passu dividend is made available to the Exchange
at a later date or the non pari passu dividend is modified/ cancelled by the
company and consequently:
a. the Receiving Member is unable to claim non
pari passu dividend/ enhanced non pari passu dividend, subsequently declared by
the company
b. the Delivering Member is unable to claim the
non pari passu dividend paid by them, which is subsequently cancelled/ reduced
by the company
Copies of the delivery detail statement, whereby
the members received/ delivered the shares, are required to be enclosed, while
reporting such cases.
The Clearing Corporation may at its discretion
also waive coupon charges in such reported cases.
3.
Request cases should be reported and rectified in market lot only.
4. The
RM should submit a copy of the delivery slip and the delivery details statement
5.
Members shall report request cases in the prescribed Form 6 F (given in
NSE F 6F), only for the specific reasons as given in Annexure 22.1. The Form 6F is required to be submitted in
triplicate, of which two copies should be firmly attached on the pouch, and the
third (original) copy should be attached to the lot inside the pouch. The lot should be so placed in the pouch that
all details mentioned on Form 6F are clearly visible, without having to open
the pouch.
6. Members reporting request cases are required
to affix a coupon of Rs.100/- on Form 6F.
7. Form 6F should be complete in all
respects. Incomplete/incorrect forms are
liable to be rejected.
Schedule for reporting
and rectification of Request cases:
Reporting of request case by the RM Thursday
Pick up of request case for rectification to
the DM Monday Day 1
Pay in of rectified request case / withdrawal
by the DM Monday Day 21
Pay out of the rectified request case to the RM Thursday Day 24
Reporting of Request Re-bad by the RM Friday Day 25
Pay out of Request Re-bad to the DM Saturday Day 26
22.1.2 Time period for reporting Request Cases
The time period for reporting request cases
shall be up to one year from the last book closure of the respective scrip.
22.1.3 Closing Out
Members are required to rectify request cases
by the prescribed day failing which such cases shall be closed out at the
previous day’s closing price.
22.1.4 Procurement of Rs. 100/- coupon for reporting
request cases
1. The coupon for reporting request cases will
be issued by the Clearing Corporation.
2. The value of each coupon is Rs. 100/-. One coupon book contains 10 such coupons.
3. Members may procure the coupon from the
Clearing Corporation by submitting a demand draft for Rs. 1000/- (per coupon
book) favouring 'National Securities Clearing Corporation Limited' payable at
Mumbai.
22.2.1 Revised procedures for reporting normal bad
deliveries
1.
The receiving member is required to report normal bad deliveries in
plastic pouches. Each delivery should be
enclosed in a separate pouch.
2. The
bad deliveries are required to be submitted in revised form 6B as prescribed by
the Clearing Corporation, on a paper of uniform (A4) size. (Given in Forms NSE
F 6B)
3.
The Form 6B is required to be submitted in triplicate, of which two
copies should be firmly attached on the pouch, and the third (original) copy
should be attached to the lot inside the pouch.
The lot should be so placed in the pouch that all details mentioned on
the Form 6B are clearly visible, without having to open the pouch.
4.
A copy of delivery details statement should be attached to the lot
inside the pouch.
5.
Members are required to report all bad deliveries pertaining to a
delivery number in the same 6B form. If
details of certificate nos., etc. are given in a separate paper, as Annexure to
form 6B, the annexure should contain the details of those shares which are to
be reported as bad delivery and the same should be stamped by the receiving
member.
6.
If the same set of distinctive numbers are to be reported as normal bad
delivery and dividend bad delivery, then both the reasons should be mentioned
on the same Form 6B. However if the
distinctive nos. reported as normal bad delivery are different from those
reported as dividend bad delivery, then separate Form 6B's should be used.
7.
Form 6B should be complete in all respects. Incomplete forms or forms not conforming to
the prescribed size and format are liable to be rejected.
22.2.2 Rectified pay in of bad delivery
1. The delivering member should submit
rectified bad deliveries along with the original Form 6B in the plastic pouch.
2. The delivering member should indicate on the
form 6B if the shares are rectified and/or replaced.
3. If the delivering member is rectifying
either the share certificate or the transfer deed or both, the same should be
clearly indicated in the specified column in form 6B.
4. If part quantity is replaced / rectified,
then a shortage letter should be attached as per the format prescribed by the
Clearing Corporation, giving the details of un-rectified deliveries. Members are required to report un-rectified
bad delivery cases in the prescribed form 6B-2.
22.3 Bad Deliveries valued at more than Rs. 20
lakhs
In cases wherein the value of bad deliveries
reported against the delivering member (DM) is greater than Rs. 20 lakhs, the
bad delivery documents shall be withheld by the Clearing Corporation. The
withheld documents would be released if the DM complies with either of the
following:
1. Deposits an amount with the Clearing
Corporation, equivalent to the value of bad delivery reported against them
2. rectifies/replaces the securities reported
under bad delivery
Item 23
CLEARING HOUSE
PROCEDURES
In pursuance of
Regulations 15 of the Capital Market Regulations, procedure for appointing
authorised representatives and use of Clearing House is specified as under:
23.1 Authorised
Clearing House Representatives/ Clearing Assistants
Each CM clearing member can appoint five
authorised representatives for each clearing house to deliver and receive
securities through the Regional Clearing House and Central Clearing House. A
member should make separate applications for designating these authorised
representatives as per the revised Form No. NSE - F 8. NSCCL will issue an
Identity Card to each of these representatives. The authorised representatives
shall display this ID card on their person at all times they are in the
clearing house premises. This ID card is non-transferable and must be
surrendered immediately to the clearing house upon cessation of employment of
any of the authorised representatives. Any loss or theft of this ID card should
also be promptly informed to the clearing house.
23.1.A.
Charges for identity cards for authorised representatives of member
|
Members |
Clearing Members |
Custodians and other Clearing with high
delivery volumes |
|
No. of cards to be issued |
5 |
Maximum 10 |
|
Charges |
NIL |
Nil up to 5 cards Rs. 1000 per card for more than 5 cards |
|
Charges for new cards where the old cards are
returned (owing to change of
members representative) |
Rs. 300/- |
Rs. 300 |
|
Charges for duplicate cards where the old card is damaged and returned for
issue of fresh cards |
Rs. 300 |
Rs. 300 |
|
Charges for additional cards where the old cards are lost/ misplaced or are not returned |
Rs. 1000 |
Rs. 1000 |
23.2 Delivery at the allotted time
The delivering member should deliver all his
delivery lots to the clearing house on the pay-in day for securities. The
clearing house will acknowledge the delivery on a copy of the delivery
statement.
23.3 Receipt at the allotted time
The receiving member should collect the
documents from the clearing house on the pay-out day of the securities.
Receiving members will be allotted time slots
for collecting documents from the clearing house. The receiving member or his
authorised representative will be required to acknowledge receipt of the
documents on the copy of the receipt statement.
23.4 Details of securities delivered to the
Clearing House
Clearing members are required to submit details
of securities delivered to the Clearing House in such form, including
electronic form, as per the format prescribed by the Clearing Corporation from
time to time.
Members are required to provide details of all
deliveries to the respective Clearing House, in 3.5" floppy diskettes in
the prescribed format. (Format given in Annexure
23.1).
In cases where floppies are not submitted and
/or where the floppies are not in the required format or where the floppies are
found to be not readable, for such cases the procedures as given in Annexure 23.2 shall be followed.
The Clearing Corporation will specify, from
time to time, the settlement types for which the clearing member should submit
the above details.
Item 24
CLEARING AND OTHER
FORMS
The
following Clearing Forms are specified:
|
Report No. |
Particulars |
Annexure |
|
NSEF-01 |
Settlement Obligations Statement of Clearing Member |
24.1 |
|
NSEF-01A |
Settlement Obligations Statement of Clearing Member - Custodian-wise |
24.2 |
|
NSEF-02 |
Settlement Obligations Statement of Custodian |
24.3 |
|
NSEF-03 |
Final Delivery Statement |
24.4 |
|
NSEF-04 |
Final Receipt Statement |
24.5 |
|
NSEF-05 |
Delivery Slip |
24.6 |
|
NSEF-06 |
Delivery Details Statement |
24.7 |
|
NSEF-06B |
Bad Delivery - format for reporting |
24.8 |
|
NSEF-06B1 |
Bad Delivery Memo |
24.9 |
|
NSEF-06B2 |
Unrectified Bad Deliveries |
24.10 |
|
BDC 1A |
Local Exchange Company Objections |
24.11 |
|
BDC 1B |
Inter-Exchange Company Objections |
24.12 |
|
BDC 2A |
Local Exchange Rectified Company Objections |
24.13 |
|
BDC 2B |
Inter-Exchange Rectified Company Objections |
24.14 |
|
BDC 3A |
Local Exchange Invalid Claim Of Company Objections |
24.15 |
|
BDC 3B |
Inter-Exchange Invalid Claim Of Company Objections |
24.16 |
|
BDC 4A |
Local Exchange Reporting Bad Delivery for Rectified Company Objections |
24.17 |
|
BDC 4B |
Inter Exchange Reporting Bad Delivery for Rectified Company Objections |
24.18 |
|
NSEF-06E |
Company Objections - Format for reporting non rectification/ non
replacement of Company Objection |
24.19 |
|
NSEF-06F |
Request Cases - Format for reporting request cases |
24.20 |
|
NSEF-6I |
Reporting fake/forged SEBI registration rubber stamp |
24.21 |
|
NSEF-6J |
Undertaking in cases of Jumbo
transfer deed submitted in Company Objection |
24.22 |
|
NSEF-07 |
Format for notice of Non-Delivery |
24.23 |
|
NSEF-07A |
TT Market Deals (for Regular
Market Deals) - Format for reporting by Custodian Clearing Member |
24.24 |
|
NSEF-07A1 |
TT Market Deals (for Depository Market Deals) - Format for reporting
by Custodian Clearing Member |
24.25 |
|
NSEF-07B |
TT Market Deals (for
Regular Market Deals) - Format for
reporting by TM Clearing Member |
24.26 |
|
NSEF-07B1 |
TT Market Deals (for Depository Market Deals) - Format for reporting
by TM Clearing Member |
24.27 |
|
NSEF-08 |
Authorised Clearing House Representative - application format |
24.28 |
|
NSEF-11A |
Format
for Reporting the settlement of Negotiated Trades as Brokers– In regular
market |
24.29 |
|
NSEF-11A1 |
Format
for Reporting the settlement of Negotiated Trades as Brokers– In
Depository market |
24.30 |
|
NSEF-11B |
Format
for reporting the settlement of Negotiated Trades effected as Principals - In
Regular Market |
24.31 |
|
NSEF-11B1 |
Format
for reporting the settlement of Negotiated Trades effected as Principals - In
Depositary Regular Market |
24.32 |
Item 25
ELECTRONIC REPORTING
25.1 Reports to members/custodians
The following reports are available
to members / custodians:
25.1.1 Delivery Reports:
a) Security wise Demat Delivery Statement (DFDS)
File Name – C_DFDS_memcode_DDMMYYYY.csv
File Location - Members Folder/Reports
Header Record
Record Type (01)
File Type
Member Type
Member Code
Date (YYYYMMDD)
Total Number of Records
Total Quantity
Detailed Record
Record Type (10)
Settlement Type
Settlement No
Delivery Type
Security Symbol
Security Series
Security ISIN
Quantity Delivered
Depository
Transaction No
b) Security Wise Demat Receipt Statement
File Name – C_DFRS_memcode_DDMMYYYY.csv
File Location - Members Folder/Reports
Header Record
Record Type (01)
File Type
Member Type
Member Code
Date (YYYYMMDD)
Total Number of Records
Total Quantity
Detailed Record
Record Type (10)
Settlement Type
Settlement No
Delivery Type
Security Symbol
Security Series
Security ISIN
Quantity Received
Depository
Transaction No
c) Client
Allocation Details (CADT)
File Name – C_CADT_memcode_DD-MMM-YYYY.csv
File Location - Members Folder/Reports
Header Record
Record Type (01)
File Type
Member Type
Member Code
Date (YYYYMMDD)
Total Number of Records
Total Quantity
Detailed Record (Securitywise client level
allocation)
Record Type (10)
Settlement Type
Settlement No
Delivery Type
Security Symbol
Security Series
Security ISIN
Quantity Received
Depository
Transaction No
Quantity Credited to CM Pool A/c / Clearing A/c
Quantity Credited to Beneficiary A/c
Detailed Record (Details of Direct Payout to Beneficiary Account)
Record Type (20)
Settlement Type
Settlement No
Delivery Type
Security Symbol
Security Series
Security ISIN
Depository
Beneficiary Account No
Quantity Required to be in
Beneficiary A/c
Quantity actually credited in Beneficiary
A/c,
Transaction No
d) Member wise Withheld Securities Statement
File Name – C_DWTH_memcode_DDMMYYYY.csv
File Location - Members Folder/Reports
Header Record
Record Type (01)
File Type
Member Type
Member Code
Date (YYYYMMDD)
Total Number of Records
Total Quantity
Detailed Record
Record Type (10)
Settlement Type
Settlement No
Delivery Type
Security Symbol
Security Series
Security ISIN
Depository
Withheld Quantity
Released Quantity
Balance Quantity
e) Deliveries Report
File Name - C_memcode_DLVR_SETTYPNO_DDMMYYYY.csv
File location - Members Folder/Reports
Settlement Type
Settlement Number
Delivery Centre Code
Receiving Centre Code
Delivery Unique ID
Delivery Date
Delivery Number
Receipt Number
Delivery Trade Number
Delivery Type
Security Symbol
Security Series
Security Code
Quantity to Deliver/Quantity to
receive
Quantity Delivered
Quantity Received (Electronic)
Quantity Received (Physical)
Quantity Received
Delivery Value
Number of Certificates
Delivering Custodian code
Delivering Trading Member
Delivering Trading Member Branch
Number
Receiving Custodian Code
Receiving Trading Member
Receiving Trading Member Branch
Objection Number
Corporate Benefit Flag
f) Security Shortages Report
File Name - C_memcode_SHRT_SETTYPNO_D_DDMMYYYY.csv
or C_memcode_SHRT_SETTYPNO_R_DDMMYYYY.csv
File Location- Members Folder/Reports
Serial No
Settlement Type
Settlement No
Security Symbol
Security Series
Short quantity
Valuation price
Valuation Debit Amount
25.1.2 Obligation Reports:
a) Daily Obligation Report
File Name -
C_memcode_DOBG_SETTYPNO_DDMMYYYY.csv
File Location-
Members Folder/Reports
Settlement Type
Settlement No
Trading Member Code
Trading Member Branch Code
Custodian Participant Code
Custodian Code
Security Symbol
Security Series
Security Code
Obligation Date
No Delivery Security Flag
Daily Buy Volume
Daily Sell Volume
Daily Buy Amount
Daily Sell Amount
Cumulative Buy
Volume
Cumulative Sell
Volume
Cumulative Buy Amount
Cumulative Sell Amount
Final Obligation Flag
b) Final Obligation Report
File Name - C_memcode_FOBG_SETTYPNO_DDMMYYYY.csv
File Location- Members Folder/Reports
Settlement Type
Settlement No
Trading Member Code
Trading Member Branch Code
Custodian Participant Code
Custodian Code
Security Symbol
Security Series
Security Code
Obligation Date
No Delivery Security Flag
Daily Buy Volume
Daily Sell Volume
Daily Buy Amount
Daily Sell Amount
Cumulative
Buy Volume
Cumulative
Sell Volume
Cumulative Buy Amount
Cumulative Sell Amount
Final Obligation Flag
c) Net Daily
Obligation Report
File Name - C_memcode_NDOBG_SETTYPNO_DDMMYYYY.csv
File Location- Members Folder/Reports
Security
Symbol
Security
Series
Cumulative
Buy Quantity
Cumulative
Buy Value
Cumulative Sell Quantity
Cumulative Sell Value
Net Quantity
Net Value
d) Net
Final Obligation Report
File Name - C_memcode_NFOBG_SETTYPNO_DDMMYYYY.csv
File Location- Members Folder/Reports
Security Symbol
Security Series
Cumulative Buy Quantity
Cumulative Buy Value
Cumulative
Sell Quantity
Cumulative
Sell Value
Net
Quantity
Net Value
25.1.3 Funds
Reports
a) Daily Funds Statement
File Name - C_memcode_DFND_DDMMYYYYY.csv
File Location- Members Folder/Reports
Summary Txn No
Segment Indicator
Bank Txns Received Date
Transaction
Code
Transaction
Description
Debit/Credit
Original Amount
Due
Amount
Amount Received
Short Amount
b) Bank
Summary Report
File Name – C_memcode_DFNS_DDMMYYYY.csv
File Location- Members Folder/Reports
Summary Transaction Number
Description
Transaction Code
Debit/Credit
From Account Number
To Account Number
Amount
25.1.4 Auction
reports
a) Auctions Square off Debit/ Credit Report
File Name - C_memcode_ASQR_SETTYPNO_D_DDMMYYYY.CSV or
C_memcode_ASQR_SETTYPNO_R_DDMMYYYY.CSV
File Location- Members Folder/Reports
Security Symbol
Security Series
Settlement Type
Settlement Number
Square off quantity
Square off Price
Square off debit/Credit Amount
b) Auction Difference Report
File Name - C_memcode_ADIF_SETTYPNO_DDMMYYYY.csv
File Location- Members Folder/Reports
Security Symbol
Security Series
Settlement Type
Settlement No
Trade Qty
Valuation Amount
Auction Amount
Auction Difference Amount
Total Funds Payable
25.1.5 Market Reports
a) Security Master
File Name - C_SEC_DDMMYYYY.csv
File location – Common Folder/Clearing
Security Symbol
Security Series
Security Description
Security Code
Security ISIN
b) Corporate Action Report
File Name - C_CORPACT_DDMMYYYY.csv
File Location- Common Folder/Clearing
Security Symbol
Security Series
Security Description
Sec Code
Record date
Book Closure start date
Book Closure end date
Ex Date
ND Start Date
ND End Date
Settlement Type
Settlement No
Corporate Action description
ISIN Code
Active/Cancelled flag
c) Settlement Calendar
File Name - C_STC_MONYYYY_DDMMYYYY.csv
File Location- Members Folder/Common
Settlement Type
Settlement No
Trade Start Date
Trade End Date
Funds Payin Date
Funds Payout Date
Security Payin Date
Security Payout Date
Final Obligation Date
Settlement Merge Number
Settlement
Active (Y/N)
Settlement
Special (Y/N)
25.1.6 Other Reports
a) Custodian Trades Report
File Name - C_cuscode_CUSTRD_SETTYPNO_DDMMYYYY.csv
File Location- Custodian / Download
Settlement Type
Settlement No
Custodian Code
Custodian Participant
Security Symbol
Security Series
Trade Date
Order number/OTR number
Buy/Sell Flag
Quantity
Price
Value
Confirmation flag
b) Order Confirmation Report
File Name - C_cuscode_ORDC_DDMMYYYY.csv
File Location- Custodian / Download
Settlement Type
Settlement Number
Security Symbol
Security Series
Order/OTR number
Buy/Sell Flag
Trade Quantity
Trade Value
Weighted Avg Price
CP
Code
TM Code
c) Trades Report
File Name - C_memcode_TRD_DDMMYYYY.csv
File Location- Members Folder/Reports
Trade Number
Trade Date
Trade Time
Security Symbol
Security Series
Security Code
Security Type
Buy Trading Member
Trade Buy Dealer
Sell Trading Member
Trade Sell Dealer
Trade Price
Trade Quantity
Buy Order Number
Sell Order Number
Buy Custodial Participant Code
Sell Custodial Participant Code
Buy Custodian Code
Sell Custodian Code
Buy Account
Sell Account
ISIN Code
Market Type
No-Delivery flag
Buy Confirmation Flag
Sell Confirmation Flag
Auction Number
Act Type
Buy TM Branch
Sell TM Branch
Old Buy Custodial Participant Code
Old Sell Custodial Participant
Code
Old Buy Custodian Code
Old Sell Custodian Code
d) No-Delivery Trades Report
File Name - C_memcode_NODEL_SETTYP_DDMMYYYY.csv
File location - Members Folder/Reports
Settlement Type
Settlement No
Trade Date
Security Symbol
Security Series
Trade No
Order number/OTR No
Buy/Sell Flag
Trade Quantity
Trade Value
Custodian Participant Code
Custodian Code
e) Securities
Transaction Tax (STT) Report
File Name – MWST_memcode_DDMMYYYY.csv
File Location- Members Folder/Reports
Header Record
Record Type (10)
STT date
Due date of payment
Member type
Member Code
Total STT
Detailed Record (Client level STT information)
Record
type(20)
STT
date
Client
code
Total STT
Detailed Record (Client Securities
level STT information)
Record Type (30)
STT date
Trading Client code
Settlement Type
Settlement Number
Security Symbol
Security Series
Total Buy Quantity
Total Sell Quantity
Total Buy Value
Total Sell Value
Volume Weighted Average Price
Purchase Quantity – delivery
Purchase value – delivery
STT purchase delivery
STT sale delivery
STT sale other than delivery
Total STT
25.2 Timelines for transmission of files to
members and receipt of files from members for Clearing
25.2.1 Files sent by Members and uploaded
by Clearing Corporation
|
Process |
File name |
Day |
Timings |
|
Obligation Transfer Request – INST
allocation |
OTR files |
T |
6:00 p.m - First upload |
|
6:30 p.m– Second upload |
|||
|
T+1 |
9:30 a.m – Third & Last upload |
||
|
Modification of CP codes |
|
T |
4:45 p.m |
|
Modification of CP codes |
RC |
T+1 |
9:30 a.m |
|
Modification of client code |
CLD |
T |
4:45 p.m |
25.2.2 Files sent by Clearing Corporation
to Members
|
Process |
File name |
Day |
Timings |
|
Status of custodial confirmations
to members. |
RC |
T+1 |
8.15 a.m. |
|
Return of Trade Modification files
to Trading Members |
RC |
T+1 |
10.00 a.m |
|
Return of OTR files to Trading
members |
OTR files |
T |
6:15 p.m 6:45 p.m |
|
T+1 |
10.00 a.m |
||
|
Daily Obligation report to members and Custodians |
|
T |
6:00 p.m. |
As
specified by SEBI vide Circ. Ref No. MRD/DoP/SE/Dep/Cir-18/2005 dated September
02, 2005 completion of Custodial confirmation of trades shall be by 1 p.m. and
download of obligations to members / custodians shall be effected by 2:30 p.m
on T+1 day.
25.3
Details of files sent to members and
received from members:
25.3.1 Client Code Modification
25.3.2 CP code modification
25.3.3 RC file (CP modification on T+1 day)
25.3.4 Obligation Transfer Request (OTR)
files
Related instructions
1. Members may directly upload the
files in the NCIS system or may place the files in the extranet server as per
the path specified.
2. The files placed by the members
would be uploaded by the Exchange and a return file would be provided to the
members with the indication of the success/rejection of the file and the
individual records as given hereunder.
·
In
case any or all the detail records are successful a return file would be
provided with an indicator ‘S’ confirming that the file was successfully
uploaded. At the detail record level an indicator S / R would be provided
indicating whether the detail record was successful or rejected respectively.
In case a detail record is rejected then an error code would be appended.
·
In
case a file is rejected due to an error in the control record then the return
file would be provided with an indicator ‘R’ confirming that the file has been
rejected and hence has not been uploaded. In the control record an indicator R
would be provided indicating an error in the control record and an error code
would be appended.
·
In
case a file is rejected because all the detail records are rejected then the
return file would be provided with an indicator ‘R’ confirming that the file
has been rejected and hence has not been uploaded. In the detail records an
indicator R would be provided indicating an error in the detail record and an
error code would be appended.
·
Such
confirmation shall be purely a validation of the correctness of the file and
record formats.
·
The
return files would be placed in the Extranet Server in the specified path.
3.
All
files shall have to be submitted before the cut off time as specified by
Clearing Corporation. Only files submitted before such time would be considered
for upload.
4. Members shall submit all the files
in a running sequence of batch numbers. Such batch numbers shall be for each
day and commence with ‘01’. If Members fail to submit an earlier batch file
then the subsequent batch files shall not be processed and if an earlier file
submitted by the member has been rejected, another file has to be submitted
with the same batch number.
5.
The
members shall be responsible for all data provided to the Exchange/Clearing
Corporation.
25.3.1
Client Code Modification
Trading Members are
required to enter the Client Code at the time of order entry in the NEAT
system.
Trading Members, who
desire to correct the client codes subsequently, shall be provided with a
facility to modify client codes at order level (not at trade level) on the
trade date, after market hours. However, proprietary trades shall not be
allowed to be modified to client trade and vice-versa. The client modifications
request shall be considered till 4:45 p.m. on the relevant trading
day.
Trading Members shall be allowed to modify the
Client Codes in respect of client orders only on the trade date. Such
modifications of a client code will be at the order level, hence all trades in
respect of that order shall be modified with the client code provided against
the order. Client code modification is not permitted in respect of auction
trades.
25.3.1.1 File
structure for modification of client code by Members:
File naming convention: CLD<YYYYMMDD>.Tnn
where,
CLD -
file type
YYYYMMDD -
date in YYYYMMDD format (trade date)
T - file indicator
nn - batch
number of file
File format: Comma
Separated Variables
Control Record Format:
|
Field |
Description |
Data Type |
Length |
Remarks |
|
Record Type |
Header record |
NUMBER |
2 |
Value = 10 |
|
Member Type |
Member Type |
CHAR |
1 |
Value = M |
|
Member Code |
Member code |
CHAR |
5 |
|
|
Batch Date |
Format : DDMMYYYY |
CHAR |
8 |
Should be same as that in the file
name. |
|
Batch number |
The batch number of the file sent |
Number |
2 |
Should be the same as that in the
file name. |
|
Number of records |
Total number of records in the
file |
Number |
6 |
Should be equal to the number of
detail records |
Detail record Format:
|
Field |
Description |
Data type |
Length |
Remarks |
|
Record Type |
Detailed Record |
NUMBER |
2 |
Value = 20 |
|
Client Code |
Mandatory |
CHAR |
10 |
Unique client code. Mandatory.
Cannot start with blank space |
|
Buy/Sell flag |
Buy /Sell order |
CHAR |
1 |
Mandatory Values B– Buy order S – Sell order |
|
Order Number |
Order number |
NUMBER |
16 |
Mandatory |
The file must
be placed in the extranet server in the respective member directory in the
path: cld\upld.
Members
may please note that all blank spaces in the client code field shall be ignored, Client codes input in lower case shall be read as upper case and records
with client codes having special characters (other than alpha or numeric) shall
be rejected
25.3.1.2 File structure of the return file sent to
member by NSCCL
The return
files would be placed in the Extranet Server in the following path: cld\dnld.
File naming convention: CLD_<YYYYMMDD>.Ynn
where,
CLD -
file type
YYYYMMDD- date in YYYYMMDD format
(trade date)
Y -
file indicator
S -in case of successful processing
R-in case of file rejection
nn -
batch number of file (same as the value in the file processed)
File format: Comma
Separated Variables
The fields provided by trading members in their
file would be provided and an additional field would be appended to each of the
record as follows:
|
Field |
Description |
Data Type |
Length |
Remarks |
|
Process Flag |
Value ‘S’/’R’ |
CHAR |
1 |
S – Successful R – Rejected If the value is R an error code
would be appended |
25.3.2 CP code modification
Members
can modify CP codes on the T day by the defined cut off time, as declared by
NSCCL from time to time. This is currently 4:45 p.m. CP code modification is
not permitted in respect of auction trades.
25.3.2.1 CP code
Modification File to be sent by Members to NSCCL on T Day:
File naming convention: <YYYYMMDD>.Tnn
where,
YYYYMMDD -
date in YYYYMMDD format (trade date)
T - file indicator
nn - batch
number of file
File format: Comma
Separated Variables
Control Record Format:
|
Field |
Description |
Data Type |
Length |
Remarks |
|
Record Type |
Header record |
NUMBER |
2 |
Value = 01 |
|
Member Type |
Member Type |
CHAR |
1 |
Value = M |
|
Member Code |
Member code |
CHAR |
5 |
|
|
Batch Date |
Format : DDMMYYYY |
CHAR |
8 |
Should be same as that in the file
name. |
|
Batch number |
The batch number of the file sent |
Number |
7 |
Should be the same as that in the
file name. |
|
Number of records |
Total number of records in the
file |
Number |
6 |
Should be equal to the number of
detail records |
Detail record Format:
|
Field |
Description |
Data type |
Length |
Remarks |
|
Record Type |
Detailed Record |
NUMBER |
2 |
Value = 20 |
|
CP Code |
CP code |
CHAR |
12 |
CP Code, INST (institutional
order) or blank (Member’s own trade) |
|
Warehouse code |
Warehouse code |
CHAR |
1 |
To be left blank |
|
Buy/Sell flag |
Buy/Sell
order |
CHAR |
1 |
Mandatory Values B– Buy order S – Sell order |
|
Trade Number |
Trade Number |
NUMBER |
16 |
To be left blank |
|
Order Number |
Order Number |
NUMBER |
16 |
Buy or Sell order number |
The file must
be placed in the extranet server in the respective member directory in the
path: cpcode\upld.
25.3.2.2 CP code Modification Return File for
Members sent by NSCCL
The return
files would be placed in the Extranet Server in the following path: cpcode\dnld.
File naming convention: <YYYYMMDD>.Ynn
where,
YYYYMMDD- date in YYYYMMDD format
(trade date)
Y -
file indicator
S in
case of successful processing
R in case of file rejection
nn -
batch number of file (same as the value in the file processed)
File format: Comma
Separated Variables
The fields provided by trading members in their
file would be provided and an additional field would be appended to each of the
record as follows:
|
Field |
Description |
Data Type |
Length |
Remarks |
|
Process Flag |
Value ‘S’/’R’ |
CHAR |
1 |
S – Successful R – Rejected If the value is R an error code
would be appended |
25.3.3
RC file (CP modification on T+1 day)
25.3.3.1
Files sent to Members for CP records
rejected/not acted upon by custodians:
The Clearing Corporation shall
download the files RC*D* informing the members about the transactions
rejected/not acted upon by the custodians
The file shall be downloaded in the
extranet folder \<TM
FOLDER>\RC\Dnld
File naming convention:
File Name <XXXXX>_RC_<YYYYMMDD>.Dnn
Where
XXXXX Member
Code
YYYYMMDD Current Date (T+1 day)
nn Batch No.
File structure:
Control record Format :
|
Sr. No. |
Control Record Field |
Values |
|
1 |
Control Record Type |
10 |
|
2 |
File Indicator |
RC |
|
3 |
Member Type |
M |
|
4 |
Member Code |
MEMBER CODE |
|
5 |
Batch Date |
YYYYMMDD |
|
6 |
Batch No |
|
|
7 |
No of Records |
|
Detail
Record Format :
|
Sr. No. |
Detail Record Field |
Values |
|
1 |
Detail Record Type |
20 |
|
2 |
B/S Flag |
B – Buy S – Sell |
|
3 |
Settlement Type |
|
|
4 |
Settlement Number |
|
|
5 |
Security Symbol |
|
|
6 |
Security Series |
|
|
7 |
Order No/ OTR No |
|
|
8 |
Custodial Participant Code |
|
|
9 |
Traded quantity |
|
|
10 |
Traded Value |
|
|
11 |
Confirmation Flag |
|
25.3.3.2 File
from Trading Members for CP modification on T+1 day
Members may modify CP codes on the
T+1 day in respect of trades not already accepted by Custodians by timelines
declared by NSCCL from time to time. Modification in respect of transactions
already accepted by Custodians till 9.30 a.m on T+1 day shall be rejected with
error code ‘729’. Modification to “INST’ or to any member code is not permitted
on T+1 day. The file has to be uploaded through the extranet folder as
specified.
File naming convention: <RCYYYYMMDD>.Tnn
where,
YYYYMMDD -
date in YYYYMMDD format (trade date)
T - file indicator
nn - batch
number of file
File format: The
structure of the RC file would be same as the custodial participant code (CPcode)
modification file.
The file must be placed in the extranet server
in the respective member directory in the path: rc\upld.
25.3.3.3 RC return file for members sent by NSCCL on T day:
The return
files would be placed in the Extranet Server in the following path: rc\dnld.
File naming convention: <RCYYYYMMDD>.Ynn
where,
YYYYMMDD- date in YYYYMMDD format
(trade date)
Y -
file indicator
S in
case of successful processing
R in case of file rejection
nn -
batch number of file (same as the value in the file processed)
File format: Comma
Separated Variables
The fields provided by trading members in their
file would be provided and an additional field would be appended to each of the
record as follows:
|
Field |
Description |
Data Type |
Length |
Remarks |
|
Process Flag |
Value ‘S’/’R’ |
CHAR |
1 |
S – Successful R – Rejected If the value is R an error code
would be appended |
25.3.4 Obligation Transfer Request – OTR files
This facility allows members to execute
institutional orders with a single code ‘INST’.
For all orders executed on a given T day, members may give a break-up of
obligations by different institutional clients latest by the T+1 day as per
defined time lines as given in Item 25.2 above. If the members fail to furnish
the break up of the obligations by different clients by 9:30 a.m. margins will
be applicable and such obligations will be reverted to the member. In respect
of trades in the Trade for Trade (Surveillance) segment (BE series) allocation
of ‘INST’ transactions is not permitted.
1.
Members must identify all such orders by a specifically designated CP code -
'INST'. Members may either place this
designated CP code at the time of order entry or members can utilise the TM-CP
file upload facility and send in a file to NSCCL at the end of each trading
day.
2. This designated CP code shall be
used by members only for institutional clients and members are advised to ensure strict compliance with
the same.
3. Members who have executed trades
using this ‘INST’ code shall be provided with a data file at the end of each
trading day. This file shall contain settlement wise, security wise, obligation
data based on the designated CP code placed by members. It is mandatory to
provide the contract note number.
4. Members may allocate the OTR
transactions to valid CP codes either by way of files in the extranet or
directly in the NCIS system. Where members are doing allocations through NCIS
they may do so by way of file upload or use the screen based facility for the
same.
5. The file shall be downloaded in
\<TM FOLDER>\OTR\Dnld folder. The member shall also keep the OTR
allocation file in the \<TM FOLDER>\OTR\Upld. The same file shall be picked up and
processed by NSCCL. The return file shall be downloaded to the member in
\<TM FOLDER>\OTR\Dnld
6. The files which are uploaded by
members in ‘Upld’ folder with wrong naming conventions shall be renamed to
<filename>.failed. The said file shall not be picked up by NSCCL for
processing. The same shall be applicable to all Upld subfolders in the member
code folder.
7. The file uploaded by members in
‘Upld’ folder having the file size as zero bytes shall be renamed to
<filename>.failed. The said file shall not be picked up by NSCCL for
processing. The same shall be applicable to all Upld subfolders in the member
code folder.
8. All files received from members
shall be processed and a return file will be sent to the members, also stating
the status of processing of the record indicating success/reject and also the
reason code in case of rejected records, specifying the reason for rejecting
the record. These files will be available in the extranet server in the
respective member's area. Members are advised to access the extranet server to
download these files. The files will be
placed in the following directory - </Clearing/otr/dnld>.
9. Members are requested to note the
following procedure in case members are desirous of modifying the allocated CP
code at a later point of time. Members must send data files sending the
original record quoting the otr no, quantity as 0 and value as 0. This shall
indicate the nullification of the previous allocation. Modification requests
not adhering to the above procedure will be rejected. Subsequently members can
send in fresh records for allocation quoting the new CP code, obligation
quantity and value. Members may either choose to send in fresh allocations in
the same file or in a separate file. However members are advised to note that
changes to the CP code are permissible only if the custodian has not already
confirmed acceptance of the same.
10. The allocation information is
communicated to the respective custodians at the end of each day for the
purpose of confirming such requests. The
custodian confirmation/rejection information is disseminated as an information
record to the members.
11. At the end of the time limit
stipulated for custodial confirmations, records that have not been allocated to
institutions, records that are rejected by custodians and records that are not
responded by custodians shall be reverted to member obligations for settlement.
All such cases shall also be subjected to margins/penalties etc. as per
procedure. Records that are confirmed by custodians shall be custodians'
obligations for settlement.
25.3.4.1 OTR File sent to
Trading Members by NSCCL
One file will be generated for each
member who has placed an order for CP code 'INST'. This file will contain cumulative security
wise obligations. The file will be in CSV format.
File Naming convention: OT<YYYYMMDD>.T01
Where
YYYYMMDD -
Date in YYYYMMDD format.
Control record:
|
Sr. No. |
Control Record Field |
Values |
|
1 |
Control Record Type |
01 |
|
2 |
File Indicator |
OTR |
|
3 |
Member Type |
Value – M |
|
4 |
Member Code |
Value – TM code |
|
5 |
Batch Date |
Value – same as in file name Format
: YYYYMMDD |
|
6 |
Batch No |
Value - 01 |
|
7 |
No of Records |
Total no of records in the file |
Detail record:
|
Sr. No |
Field |
Values |
|
1 |
Record Type |
Value = 10 records for which
action is to be taken by members Value = 20,30 indicates for information only |
|
2 |
Buy/Sell flag |
Value B- Buy side, S – Sell side |
|
3 |
Settlement Type |
Settlement Type |
|
4 |
Settlement Number |
Settlement Number |
|
5 |
Security Symbol |
Security Symbol |
|
6 |
Security series |
Security series |
|
7 |
CP code |
for record type 10 – the value
will be INST for record type 20,30 the value will be CP code , INST
respectively |
|
8 |
Obligation Quantity |
Total Obligation quantity |
|
9 |
Obligation Value |
Total Obligation value |
|
10 |
Contract Note Number |
Contact Note Number as given by TM
(will be given for record type 20 only and where the member has allocated to
a CP code) |
|
11 |
OTR No |
A unique OTR no. generated ( will
be given for record type 20 only) |
|
12 |
Confirmation flag |
value = ‘Y’/’N’ or null ( will be
given for record type 20 only) This indicates the status of the record for
which allocation is completed. Y indicates custodian confirmation, N
indicates custodian reject, blank indicates no action taken by custodian as
yet |
25.3.4.2 OTR (INST) allocation file to be sent by Trading members to
NSCCL
Members
are required to send the data in the following file format for the purpose of
allocating ‘INST’ transactions to respective CP codes. Members can send the
details upto 9:30 am on T+1 day or as declared by NSCCL from time to time.
File naming convention:
OT<YYYYMMDD>.Nnn
Where
YYYYMMDD - Date in YYYYMMDD
format
nn - the batch no of the file sent for the
day.
File format: Comma
Separated Variables
Control record:
|
Sr. No |
Field |
Description |
Data type |
Length |
Remarks |
|
1 |
Record type |
Header Record |
CHAR |
2 |
Value = 01 |
|
2 |
File Type |
File Type |
CHAR |
4 |
Value = OTR |
|
3 |
Member Type |
Member Type |
CHAR |
1 |
Member Type ( Value = M) |
|
4 |
Member Code |
Member Code |
CHAR |
5 |
Member code for which file
generated/received (Value = TM_code) |
|
5 |
Batch Date |
Format : YYYYMMDD |
CHAR |
8 |
Should be same as that in the file
name |
|
6 |
Batch number |
The batch number of the file sent |
Number |
2 |
Should be same as that in the file
name |
|
7 |
Number of records |
Total number of records in the
file |
Number |
7 |
Should be equal to the number of
detailed records |
Detail record:
|
Sr. No |
Field |
Description |
Data type |
Length |
Remarks |
|
1 |
Record type |
Detailed record |
CHAR |
2 |
Value – 10 for OTR Allocation
Record. |
|
2 |
Buy/Sell flag |
Buy/Sell order |
CHAR |
1 |
Value B – Buy side , S – sell side |
|
3 |
Settlement type |
Settlement type |
CHAR |
1 |
- |
|
4 |
settlement Number |
settlement Number |
Number |
7 |
- |
|
5 |
Security symbol |
Security symbol |
CHAR |
10 |
- |
|
6 |
Security series |
Security series |
CHAR |
2 |
- |
|
7 |
CP code |
CP code |
CHAR |
12 |
the value will be INST |
|
8 |
Allocated qty |
Allocated qty |
Number |
9 |
qty to be allocated to a CP |
|
9 |
Allocated Value |
Allocated Value |
Number |
15,2 |
value of the allocated qty |
|
10 |
Custodian Participant Code |
Custodian Participant Code |
CHAR |
12 |
The Custodial participant code which the qty
and value is to be allocated |
|
11 |
Contract note number |
Contract note number |
CHAR |
10 |
This number is mandatory if the quantity,
value is allocated to a valid CP |
|
12 |
OTR No |
Number in the return file |
Char |
10 |
This is required to be given if the TM
desires to modify a record already allocated. |
25.3.4.2 OTR (INST) allocation return file to be sent by NSCCL to Trading
members
NSCCL
shall process these files and send back return files with the status field
appended at the end of each detail record. The file naming convention is
<same file name as sent by member>.Snn if the file is processed
successfully. The file naming convention
is <same file name as sent by member>.Rnn if the file is rejected. OTR no
will also be communicated indicating the request no for the processed record.
|
Sr. No |
Field description |
length |
Mandatory/ optional |
Description |
|
1 |
Process Flag |
CHAR(1) |
Mandatory |
Value ‘S’/’R’ |
|
2. |
Error code |
CHAR (3) |
Optional |
will be given in case of rejected records only |
25.4 NSCCL’s
Clearing Interface System (NCIS)
NSCCL has provided an interface, ‘NSCCL’s
Clearing Interface System’ whereby the members can carry out the activities of
client codes modification, CP code modification and OTR allocation on a front
end screen. This shall be in addition to the existing facility of file uploads
on the extranet for the above activities.
Members may view the confirmation status of OTR transactions which are
marked for confirmation by Custodians through this interface.
To avail this facility members shall be
required to request the Clearing Corporation for User Login as per the format
provided in Annexure 25.2. On
acceptance of the application the members shall be given details of their user
login and password vide letter from NSCCL.
In order to gain familiarity with this new interface
Members may refer circular No. NSE/CMPT/10685 dated May 12, 2008 for detailed
User Manual.
Item 26
MUTUAL FUNDS
SERVICE SYSTEM
Mutual Fund Service System (MFSS) deals with units of open ended mutual funds. Under MFSS, clearing members can buy or redeem units of mutual fund schemes using the existing network and order collection mechanism provided by NSE, and clearing and settlement mechanism of NSCCL.
The salient features of the facility are outlined below:
1. An investor who wishes to buy units of a mutual fund scheme or redeem them can use this facility provided by the NSE. In order to buy units, the member will be required to place a buy order. A member who wishes to redeem units of a mutual fund scheme will be required to place a sell order on the system. All buy/sell orders are in terms of quantity only. The Spot market order book of the NEAT-IPO system will be used for collecting such orders.
2. Different mutual fund schemes may follow different pricing methods. These are usually based on NAV and are adjusted for load factors and costs. In some cases, prices may be known in advance whereas in other cases the actual prices may be communicated by a mutual fund at the end of day. In such cases, the price will be transmitted to members at the end of day. The pricing method followed by mutual funds for sale or repurchase of the mutual funds schemes will be communicated to members.
3. This service will operate settlement as prescribed by the relevant authority from time to time All orders for a day shall be settled accordingly. The settlement calendar for the same shall be communicated to members from time to time.
4. NSCCL shall compute members obligations and make available reports/data by T+1. The reports/data will be made available on the extranet server.
5. All orders will be settled on trade-for-trade basis and only to the extent of the units/funds paid in by members on the settlement day. The mutual fund shall be the counter party to all orders placed by members.
6. Settlement of units will be carried out in dematerialised form. The existing CM pool account/designated clearing account, with the depositories that is currently operated for the CM segment, will be utilised for this purpose.
7. Settlement of funds will be carried out through the clearing banks. Members will be required to open and operate a separate bank account with any of the clearing banks and authorise NSCCL to carry out debits/credits for this new facility.
8. The list of eligible mutual fund schemes shall be communicated to the members from time to time.
Members who wish to participate in MFSS are required to do the following –
· It must be executed on a non-judicial stamp paper of Rs. 100/- or as per the stamp duty payable at the place of execution, whichever is higher.
·
The stamp paper should have been issued in the
name of the Clearing Member on or before the date of the undertaking. In case the undertaking is executed in the
state of
· It should be duly notarised.
Item 27
PRIVITY OF CONTRACT
In pursuance of Bye Law 11(2) of Chapter VI of the Bye Laws pertaining
to Clearing and Settlement of Deals, the
cases to which the said section shall apply are specified herein :
27 Settlement Obligations of CM clearing members for giving and receiving delivery and paying and receiving funds arising out of Regular Market Deals, and LP Deals as specified under Item 2 of this circular unless specifically excluded by the relevant authority from time to time.
Pursuant to the above the following settlement obligations are specifically excluded :
27.1 Settlement obligations arising out of any deal where in the opinion of the Clearing Corporation or the specified Stock Exchange there are prima facie suspicion of fraud, wilful misrepresentations, malpractice or are subject to any investigation by the relevant authority of either the Clearing Corporation or the Specified Stock Exchange or by any statutory authority or are deals which are not properly executed in accordance with the respective Bye Laws, Rules and Regulations of the Specified Stock Exchange.
Annexure 5.1
Format for intimation of CDSL pool
account to the Clearing Corporation
Annexure-5.1(b)
Letter to be given to CDSL
Date:
From:
[Clearing Member Name and address]
To:
[Central Depository Services (I) Ltd. and address]
Dear Sirs,
Sub: Operation of Depository for National Securities Clearing Corporation Limited
Ref: Our Depository Account No: with [CDSL, address].
With reference to the above, we note that:
1. NSCCL has established a clearing and settlement system, whereby its members will be able to undertake the clearing and settlement of deals admitted.
2. Central Depository Services (I) Limited (CDSL) has been appointed by NSCCL as a Settling Depository for the purpose of settlement of securities in dematerialised form.
3. Now I/We do hereby irrevocably authorize CDSL to block/earmark the balances in my/our Depository account and to debit/credit my/our above account as the case maybe as per the instructions received from NSCCL. Additionally I/We authorize CDSL to report balances and give any other information as and when required to NSCCL relating to my/our above mentioned account. This irrevocable undertaking will be effective from the date of commencement of operation by NSCCL.
4. I/We further hereby undertake to abide by such other or further guidelines / instructions as may be communicated / devised by the NSCCL.
Yours faithfully
Authorised Signatory.
cc to NSCCL
cc to DP
Annexure-5.1(b)
Account opening confirmation (to be sent duly filled to NSCCL)
T.M.Code :
T.M.Name :
_________________________________________________________
__________________________________________________________
Account No.:
(by CDSL)
DP Id :
Signature: _______________________
Stamp :________________________
Date :________________________
Annexure 6.1
Designated clearing banks
|
Sr.no |
Clearing Bank |
Address |
Contact Person & Numbers |
|
1. |
Axis Bank Ltd. |
Capital Market Division, |
Mr. Sunil Sharma |
|
2. |
Bank of India Ltd. |
Stock Exchange Branch, |
Mr. R. S. Nair |
|
3. |
Canara Bank Ltd. |
NSE Branch, |
Mr. Partha Sarathy |
|
4. |
Citibank N.A. |
Citigroup Global Services, |
Mr Ganesh Ramanathan |
|
5. |
The Hongkong & Shanghai
Banking Corporation Ltd. |
52/60, |
Mr. Ritesh Jain |
|
6. |
ICICI Bank Ltd. |
Capital Market Division, |
Ms. Hemanshi Shah |
|
7. |
HDFC Bank Ltd. |
2nd Floor, Trade World |
Mr. Shailesh Sukhthankar |
|
8. |
IDBI Bank Ltd. |
Block no 82/83 |
N.R. Viswanadhan |
|
9. |
IndusInd Bank Ltd. |
|
Mr. Pradeep Bhave |
|
10. |
Kotak Mahindra Bank Ltd. |
Unit no.35, 3rd |
Mr. Rajiv Gurnani |
|
11. |
Standard Chartered Bank |
5th floor, Forbes Building |
Sachin Shah |
|
12. |
Union Bank of |
Capital Market Cell |
Mr. R.S. Majithia |
|
13. |
State Bank Of |
Mumbai Main Branch |
Ms. Vidya Krishnan |
Annexure 6.2
Format -Letter to be submitted by member to bank for operation of
Primary / Secondary * clearing A/c
Date:
From:
[Clearing Member name and address]
To:
[Clearing bank name and address]
Dear Sirs,
Sub: Operation of Clearing Bank for
National Securities Clearing Corporation Limited (NSCCL).
Ref: Our Clearing / Secondary *
Clearing Bank Account No:______________ with [Clearing Bank name and address]
With reference to the above, we note
that:
1. National Stock Exchange of India
Ltd. has formed National Securities Clearing Corporation Limited (NSCCL) as a
wholly owned subsidiary to undertake clearing and settlement activity for its
Members. NSCCL has established a clearing and settlement system, whereby its
members will be able to undertake the clearing and settlement of deals
admitted.
2. The bank has been nominated /
appointed as a Clearing Bank for the purpose of Clearing and Settlement by
NSCCL.
3. As per the Byelaws, Rules and
Regulations of NSCCL, the member shall authorise the Clearing Bank to access
their clearing account for debiting & crediting their accounts as per the
instructions received from NSCCL from time to time.
4. Having due regard to the above,
we hereby irrevocably authorise the Clearing bank to debit and credit our above
referred clearing bank account from time to time as per the instructions
received from NSCCL.
Further, we authorise the Clearing Bank to report balances and other
information relating to this account to NSCCL as may be required by NSCCL from
time to time. This irrevocable undertaking will be with immediate effect.
5. We further hereby undertake to
abide by such other or further guidelines / instructions as may be communicated
/ decided by NSCCL.
Yours faithfully,
Authorised Signatory
Designation
* Strike out whichever is not applicable
Annexure 6.2.1
Format -Letter to be submitted by member to bank for operation of
clearing A/c
To be given on the member's letterhead / signed by the authorised signatory and stamped)
Date:
From:
[Clearing Member Name and address]
To:
[Designated clearing bank and address]
Dear Sir / Madam,
Sub: Operation of Bank Account by National Securities Clearing Corporation Limited
Ref: Our Account No:_____________________
With reference to the above, we note that:
1. NSCCL has established a clearing and settlement system, whereby its members will be able to undertake the clearing and settlement of deals admitted in the Mutual Fund Service System.
2. [Designated clearing bank] is one of the banks appointed by NSCCL as a Clearing Bank for the purpose of settlement of funds.
3. Now I/We do hereby irrevocably authorize [Designated clearing bank] to debit/credit my/our above account as the case may be as per the instructions received from NSCCL. Additionally I/We authorize [Designated clearing bank] to report balances and give any other information as and when required to NSCCL relating to my/our above mentioned account. This irrevocable undertaking will be with immediate effect.
4. I/We further hereby undertake to abide by such other or further guidelines / instructions as may be communicated / devised any time by NSCCL.
Stamp: Yours faithfully
Copy to : NSCCL Authorised Signatory
Annexure 7.1
Auto Pay-in – Auto Delivery Out
Letter format
From:
[Clearing Member Name and address]
To:
[NSCCL and address]
Dear
Sirs,
Sub: Availing the facility of Automatic Delivery
Out in NSDL
With
reference to the above, we note that:
1.
NSCCL is commencing a new facility for automating the delivery out
instructions.
2.
We wish to avail of this facility for the following settlement types. (Please
mark 'Y' against the settlement type for which this facility is desired and 'N'
against the settlement for which this facility is not required)
Settlement Type 'N', Market Type 13
Settlement Type 'A', Market Type 14
Settlement Type 'W', Market Type 22
Settlement
Type ‘D’ Market type 21
3.
We do hereby irrevocably authorize NSCCL to provide NSDL with the details of
the delivery obligations, including the security details and the quantities to
deliver for all the above settlement types and any other details which may have
to be given to NSDL with respect to the above subject. This irrevocable
undertaking will be effective from the date of this letter.
4.
We understand that in the case of pari-passu shares and multiple ISINs, Auto DO
instructions will be generated for only the primary ISIN. We also understand
that in case an IDO is given, the Auto DO instructions for the same will be
monitored by us and any changes desired to be made in the Auto DO instructions
will be done by us accordingly.
5.
In case of shifting of our CM pool account in NSDL, we undertake to monitor the
delivery instructions including the Auto DO instructions generated by NSCCL. We
understand that NSCCL will be generating Auto DO instructions for a single
depository account only, even if two CM pool accounts are operating at the same
time.
6.
NSCCL will not be responsible for any short or excess shares b eing transferred from our depository
account with NSDL on account of Auto DO.
7. In case we fail to comply with the specified
requirements of NSDL, resulting into short deliveries and consequential close
out, NSCCL will in no way be responsible.
8.
We further hereby undertake to abide by such other or further guidelines /
instructions as may be communicated / devised by NSCCL from time to time.
Yours
faithfully
Signature
of
(Member/Partner
of Partnership firm/Director of a Corporate Member)
Annexure 7.2
Direct Payout to Investors Account
1. Members shall be required to provide
files in a specific structure (given as under) to the Clearing Corporation for
effecting payout directly to the client’s beneficiary accounts.
2. Additionally, the clearing member
can provide own settlement account details if the clearing member intends to
receive full or part payout of securities, which is not identified for direct
client account payout, in the settlement account with specific depository. This
information can be provided in the same file. The clearing member is required
to provide depository participant ID and depository participant client ID if
the settlement account is with NSDL or CM Settlement account number if the
settlement account is with CDSL.
3. The files would have to be sent by
the members to the clearing corporation by
4. The files shall be uploaded by Clearing Corporation in its
system and returned with the indication of the success/rejection of the file
and the records. This shall be purely a validation of the correctness of the
file and record formats.
5. In case Clearing Members intend to
modify the data in a file, which has been already submitted to Clearing
Corporation, the Clearing Member would be having an opportunity to submit the
full file after carrying out the modifications (before the cut off time
announced by Clearing Corporation). With the submission of this full file the
file submitted earlier shall be ignored and not considered. This would mean
that the data provided in the latest batch shall be duly considered final and
complete and the file submitted earlier shall be totally ignored.
6. Clearing Members will have to submit
all the files in a running sequence of batch numbers. If Clearing Members fail
to submit an earlier batch file then the subsequent batches will not be
processed. However, if the earlier file was completely rejected, the same batch
number should be used for the subsequent corrected file.
7. The total quantity of securities to
be credited to the account of various constituents shall not exceed the net pay
out by Clearing Corporation to the Clearing Member.
8. The Clearing Members shall provide
the details of beneficiary account of the constituents of the Trading Members
in any one of the depositories.
9. If for any record, the quantity
requested to be credited to the account of the constituent is more than the
balance available for pay out to the Clearing Member in that depository, the
quantity available in that depository shall only be directly credited to the
constituent.
10. Where the Clearing Members fail to
provide the details of the beneficiary account or where the credit to the
beneficiary accounts of the constituents fail, or any account whatsoever the
remaining quantity received from other depository as pay out shall be credited
to the CM Pool / Clearing account of the Clearing Member with the respective
depositories
11. The credit to the beneficiary
account of the constituent shall be pursuant to the file and in conformity with
the details provided by the Clearing Member requesting Clearing Corporation to
directly credit the accounts of the constituent. Hence execution of such
electronic instructions of passing the credit to the account of the
constituents shall mean and be pay out to the Clearing Members
12. Clearing Members shall be provided a
return file after completion of pay out confirming the details of the accounts,
which have been credited by the depositories (CM Pool a/c and or Beneficiary
accounts).
13. Clearing Corporation shall consider
the data provided by the Clearing Members as final and correct and shall not be
responsible for any incorrect data provided by the Clearing Members. The
Clearing Members shall be fully responsible for any erroneous data provided to
Clearing Corporation.
14. The files must be placed in the
extranet server in the directory, Clearing \CPD\dnld.
Members
may note that this is only a facility offered to the members in terms of the
SEBI circular in this regard. However, where Members are unable to provide the
data in respect of clients to Clearing Corporation for direct credit to the
account of the clients the securities would be credited to the respective pool
account of the members and the resultant guidelines of the SEBI in respect of
holdings in the pool account shall apply.
It
may also be noted here that that the requirements specified by SEBI / Exchange
in relation to release of funds / securities to the respective clients is
within one day of declaration of pay -out by the respective Exchange / Clearing
Corporation.
File structure
for Payout to Client
File format: Comma Separated
Location of the file: \\CMCLRG\Export
Naming Convention of the file:
CPD<SYYYYYYYD>.Xnn
CPD File
type
S Settlement
Type
YYYYYYY Settlement Number
D Delivery
Type
X File
Indicator
T File
coming from the member
S Success
File sent to the trading members
R Reject
File sent to the trading members
nn Batch
number (is a running sequence)
Control record Format:
|
Sr. No. |
Field |
Length |
Mandatory/Optional |
Description |
|
1. |
Record
Type |
CHAR(2) |
Mandatory |
Value = 10 |
|
2. |
File
Type |
CHAR(3) |
Mandatory |
Value = CPD |
|
3. |
Member
Type |
CHAR(1) |
Mandatory |
'M'
For Clearing Member 'C' - For Custodians |
|
4. |
Member Code |
CHAR(5) |
Mandatory |
Member Code |
|
5. |
Settlement type |
CHAR(1) |
Mandatory |
|
|
6. |
Settlement number |
CHAR(7) |
Mandatory |
|
|
7. |
Delivery Type |
CHAR(1) |
Mandatory |
|
|
8. |
Batch
Number |
Number(2) |
Mandatory |
Batch Number in running sequence |
|
9. |
Total
No. of Records |
Number(7) |
Mandatory |
Total number of records in file |
|
10. |
Total
quantity |
Number(9) |
Mandatory |
|
Detail Record Format
|
Sr. No. |
Field |
Length |
Mandatory/Optional |
Description |
|
1. |
Record Type |
CHAR(2) |
Mandatory |
Value = 20 |
|
2. |
Depository Id |
CHAR(5) |
Mandatory |
Value = NSDL / CDSL |
|
3. |
ISIN |
|
CHAR(12) |
|
|
4. |
Beneficiary Account No |
CHAR(16) |
Mandatory |
In case of CDSL the Beneficiary
a/c. In case of NSDL the 1st 8 digit shall be the DP Id and the next 8 digits
shall be the beneficiary a/c, in that order |
|
5. |
Quantity |
Number(9) |
Mandatory |
|
ANNEXURE - 9.1
|
Sr. No. |
Corporate
Benefit |
Valuation |
|
1 |
Dividend/Interest/
Redemption amount |
All debit/credit for valid claims on company objections
lodged with Clearing House shall be done by the Clearing Corporation. |
|
2 |
Bonus |
IM may deliver the entire quantity of bonus shares
claimed by the RM. In case of part delivery of bonus shares the delivery must
necessarily be in market lots. In case the IM does not deliver the shares,
the equivalent monetary value for the bonus shares shall be debited to the IM
and credited to the account of RM by the Clearing Corporation. |
|
3 |
Rights- Equity |
IM may deliver the
entire quantity of rights shares
claimed by the RM and claim the amount for issue price in the relevant
portion of form BDC-2A. In case of part delivery of rights shares, the
delivery must necessarily be in market lots. In case the IM does not deliver
the shares, the equivalent monetary value less rights issue amount shall be
debited to the IM and credited to the account of RM by the Clearing
Corporation. |
|
4 |
Rights |
FCD,PCD-convertible
part (which are traded on NSE) IM may deliver the entire quantity of rights
FCD, PCD - convertible part (which are traded on NSE) claimed by the RM and
claim the amount for issue price in the relevant portion of form BDC-2A. In
case of part delivery of rights FCD, PCD - convertible part (which are traded
on NSE), the delivery must necessarily be in market lots. In case the IM does
not deliver the rights shares, the equivalent monetary value less rights
issue amount shall be debited to the IM and credited to the account of RM by
the Clearing Corporation. |
|
5 |
Rights - NCD
PCD-Non Convertible Part |
No Valuation |
|
6 |
Others Rights - FCD,PCD-convertible part (if not traded
on NSE) |
Shall be handled directly between members as is the
current practice |
IM : Introducing Member/First Introducing Member
RM : Receiving Member/Last Introducing Member
Computation of equivalent value : The equivalent value of a scrip will be the closing price of Day 19. The date of intimation of objection is taken as Day 1. In case there is no trading on Day 19, then the closing price of the day preceding Day 19 on which trading took place will be taken as equivalent value. However, if the rectification of objection is beyond the stipulated period of 21 days (owing to the scrip being in no delivery), the relevant valuation price shall be the closing price of the date 2 days prior to the date of rectification.
Annexure-10.1
List of Approved Banks for issuance of Fixed Deposits Receipts &
Bank Guarantees
|
Sr. No |
Bank Name |
|
1 |
ABN AMRO BANK NV |
|
2 |
ALLAHABAD BANK |
|
3 |
ANDHRA BANK |
|
4 |
AXIS BANK LTD |
|
5 |
BANK OF |
|
6 |
BANK OF |
|
7 |
BANK OF |
|
8 |
BANK OF |
|
9 |
BANK OF NOVA |
|
10 |
BANK OF RAJASTHAN LTD |
|
11 |
BARCLAYS BANK PLC |
|
12 |
BNP PARIBAS |
|
13 |
CANARA BANK |
|
14 |
CENTRAL BANK OF |
|
15 |
CITIBANK NA |
|
16 |
CITY UNION BANK LTD. |
|
17 |
CORPORATION BANK |
|
18 |
DBS BANK LTD |
|
19 |
DENA BANK |
|
20 |
DEUTSCHE BANK AG |
|
21 |
DEVELOPMENT CREDIT BANK LTD |
|
22 |
DHANALAKSHMI BANK LTD |
|
23 |
FEDERAL BANK LTD |
|
24 |
HDFC BANK LTD |
|
25 |
HONGKONG AND SHANGHAI BANKING
CORPORATION LTD |
|
26 |
ICICI BANK LTD |
|
27 |
IDBI BANK LIMITED |
|
28 |
INDIAN BANK |
|
29 |
INDIAN OVERSEAS BANK |
|
30 |
INDUSIND BANK LTD |
|
31 |
ING VYSYA BANK LTD |
|
32 |
JAMMU & KASHMIR BANK LTD |
|
33 |
JP MORGAN CHASE BANK NA |
|
34 |
KARNATAKA BANK LTD |
|
35 |
KARUR VYSYA BANK LTD |
|
36 |
KOTAK MAHINDRA BANK LTD |
|
37 |
LAKSHMI VILAS BANK LTD |
|
38 |
ORIENTAL BANK OF COMMERCE |
|
39 |
PUNJAB & SIND BANK |
|
40 |
PUNJAB NATIONAL BANK |
|
41 |
SOCIETE GENERALE |
|
42 |
SOUTH INDIAN BANK LTD |
|
43 |
STANDARD CHARTERED BANK |
|
44 |
STATE BANK OF BIKANER & JAIPUR |
|
45 |
STATE BANK OF |
|
46 |
STATE BANK OF |
|
47 |
STATE BANK OF |
|
48 |
STATE BANK OF |
|
49 |
STATE BANK OF |
|
50 |
STATE BANK OF TRAVANCORE |
|
51 |
SYNDICATE BANK |
|
52 |
TAMILNAD MERCANTILE BANK LTD |
|
53 |
THE CATHOLIC SYRIAN BANK |
|
54 |
UCO BANK |
|
55 |
UNION BANK OF |
|
56 |
UNITED BANK OF |
|
57 |
VIJAYA BANK |
|
58 |
YES BANK LTD |
Annexure-10.2
List of Approved
Custodians
|
Sr. No |
Name of Custodian |
Contact Person |
Address |
Phone/Fax |
|
1 |
HDFC Bank Ltd. |
Mr. Anu Khandelwal / Ms.
Swapna Sawant |
Custody
Services, |
Phone Nos : 24961616 /24910492 |
|
2 |
Stock Holding
Corporation of India Ltd. (SHCIL) |
Mr. Ganesh Zodge / Mr. Vinod |
DP Operations (Pledge - NSCCL Margin) |
Phone Nos. : 25795247 |
|
3 |
ICICI Bank Ltd. |
Mr. Nagesh Srivastava / Mr.Yogesh Gadgill |
Securities Market Services, |
Phone Nos. : 66672005 / 66672736 |
Annexure-10.3
Format for submission of FDR towards
Security Deposit
Annexure-10.3a
Format of Member Letter for
submission of FDR to Custodian
(To be typed on member's letter
head)
To Date:
Name & Address of custodian (Capital
Market Segment)
Dear Sir,
As
per requirements of National Securities Clearing Corporation Limited (NSCCL) and
in compliance of prescribed norms of NSCCL, we have to furnish security deposit and accordingly have
furnished you the same in the form of FDR (FDR No.------------ ) placed with
____________________________ Bank, issued as ”Name of Custodian” - A/c. “Member Name” for
Rs. ______/- (Rupees
___________________________ only.)
I/We
hereby agree and consent that as the custodian of NSCCL, you shall have an
irrevocable authority to encash the said FDR and to withdraw the said FDR
amount at any time, even prior to maturity, without notice to me/us for
recovery/adjustment of NSCCL/NSEIL dues and we have no objections whatsoever
for the same.
I/We
agree that you may renew the FDR for periods of one year each time till the FDR
is released by NSCCL.
I/we
agree that on the encashment of FDR, NSCCL will be entitled to the interest
accrued on the said FDR also and you are hereby authorised to pay the accrued
interest to NSCCL along with the principal amount (FDR amount) payable.
Yours faithfully,
Authorised
Signatory
________ Member name and Member Code
Annexure-10.3b
Format of letter to be given by
the bank issuing the security deposit FDR to the custodian
(To be typed on bank’s letter
head)
To Date:
Name
& Address of the Custodian
Dear
Sir,
We
refer to the fixed deposit receipt (FDR) bearing no. ______________ issued for
Rs.___________ ( Rs in words) in your name A/c. “Member's name”
We
hereby agree and confirm that
i.)
There is no lock in period for encashment of the said FDR.
ii.)
The amount under the said FDR would be paid to you on demand, at any
point of time without any reference to the ________________ (name of member).
iii.)
Encashment whether premature or otherwise would not require any
clearance from any other authority / person.
iv.)
On encashment of the FDR by you, the interest accrued thereon will also
be released to you.
v.)
The FDR will be renewed for such periods as may be instructed by you.
vi.)
The FDR is payable at Mumbai (In case FDR is issued from places other
than Mumbai,
Yours
faithfully,
Authorised Signatory
________ Bank Ltd.
Annexure-10.3 c
Format of member letter for
submission of FDR towards Security Deposit to NSCCL
(To be typed on Member’s letter head)
To Date:
National
Securities Clearing Corporation Ltd (Capital
Market Segment)
Exchange
Plaza
Bandra
Kurla Complex
Bandra
(E)
Mumbai-400
051
Dear
Sir,
As
per requirements of National Securities Clearing Corporation Limited (NSCCL)
and in compliance of prescribed norms of NSCCL, we have to furnish you security deposit and accordingly have
furnished you the same in the form of FDR (FDR No.---------) placed with
____________________________ Bank, issued as NSCCL A/c “Member’s name “ for Rs. ______/- (Rupees _____________________
only.)
I/We
hereby agree and consent that you shall have an irrevocable authority to encash
the said FDR and to withdraw the said FDR amount at any time, even prior to
maturity, without notice to me/us for recovery/adjustment of NSCCL/NSEIL dues
and we have no objections whatsoever for the same.
I/We
agree that you may renew the FDR for period of one year each time till the FDR
is released by you.
I/we
agree that on the encashment of FDR, you will be entitled to the interest
accrued on the said FDR and you are hereby authorised to receive the accrued
interest from the Bank along with the principal amount (FDR amount) payable.
Yours
faithfully,
Authorised
Signatory
________
Member name and Member Code
Annexure-10.3d
Format of letter to be given by the bank issuing the security deposit
FDR to NSCCL
(To be typed on bank’s letter
head)
To Date:
National
Securities Clearing Corporation Ltd.
Exchange
Plaza
Bandra
Kurla Complex
Bandra
(E)
Mumbai-400
051
Dear
Sir,
We
refer to the fixed deposit receipt (FDR) bearing no. ______________ issued for
Rs.___________ , ( Rs in words) in your
name A/c “Member's name”
We
hereby agree and confirm that
i.)
There is no lock in period for encashment of the said FDR.
ii.)
The amount under the said FDR would be paid to you on demand, at any
point of time without any reference to the ________________ (name of member).
iii.)
Encashment whether premature or otherwise would not require any
clearance from any other authority / person.
iv.)
On encashment of the FDR by you, the interest accrued thereon will also
be released to you.
v.)
The FDR will be renewed for such periods as may be instructed by you.
vi.)
The FDR is payable at Mumbai (In case FDR is issued from places other
than Mumbai,
Yours
faithfully,
Authorised
Signatory
________ Bank Ltd.
Annexure-10.4
Format of Bank
Guarantee for Margin Deposit and Security Deposit
BG
NO: __________________
Date : __________________
To:
National Securities Clearing Corporation Ltd.
Exchange Plaza, Plot C-1, G Block,
Bandra Kurla Complex,
Bandra (East),
Mumbai – 400 051.
Dear Sirs:
This guarantee bearing No. _________________________ is
issued by ____________________________,
a body corporate constituted under the Companies Act 1956, having its Head Office
at ___________________________________________
(hereinafter referred to as the “Bank” which term shall wherever the context so
permits includes its successors and assigns) in favour of National Securities
Clearing Corporation Limited, a company incorporated under the Companies Act,
1956 and having its registered office at Exchange Plaza, Plot C-1, G Block,
Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 (hereinafter referred to as “NSCCL” which
expression shall include its successors and assigns).
Whereas
a. Mr./Ms.__________________________________________
s/o / d/o / w/o ________________________________________________,residing
at __________________________and
having his/her office at _______________________________(Complete
Address), (hereinafter referred to as the “Clearing Member”, which expression
shall include his/her successors and assigns) /* is/are a Clearing
Member of NSCCL.
OR
M/s ______________________________________________,
a partnership firm registered under the Indian Partnership Act, 1932 and having
their office at _____________________________________________ (Complete
Address), (hereinafter referred to as the “Clearing Member”, which expression
shall include their successors and assigns ) /* is/are a Clearing
Member of NSCCL.
OR
BG
NO: __________________
Date : __________________
M/s___________________________________________________., incorporated as a company under
the Companies Act, 1956 and having its registered office at ___________________________(Complete
Address), (hereinafter referred to as the “Clearing Member”, which expression
shall include its successors and assigns ) * is/are a Clearing
Member of NSCCL.
b. One of the conditions of Clearing
Membership of NSCCL is that the Clearing Member maintains with NSCCL *security
deposit/ margin deposit in the form shares and other securities of a value not less than Rs. _______ after applying
suitable margins as prescribed by NSCCL, for Capital Market Segment
c. At
the request of the Clearing Member, NSCCL has agreed to accept a bank guarantee
in lieu of such *security deposit/ margin deposit, as the case may be in favour
of NSCCL from an approved commercial bank for an equivalent amount of Rs._________________________________________________.
d. The
Clearing Member has requested the Bank to furnish to NSCCL a guarantee for Rs._________________
____________________________.
Therefore these presents:
1.
This
guarantee shall be governed by the terms and conditions of the Master Agreement
dated ________executed between the Bank and NSCCL and the same shall form a
part and parcel of this guarantee as though the same have been incorporated in
this guarantee.
2.
The
liability of the Bank under this guarantee shall not exceed Rs._______________.
3.
This
guarantee shall be valid for a period of _________ months i.e. upto ____. However, the Bank is liable to pay the
guaranteed amount if NSCCL serves upon Bank a written claim or demand on or
before ____________ (i.e. within ___ _____ after the date of expiry of the bank
guarantee as mentioned in clause 3 above).
Executed this ____ day of
______________ at __________
For ________(Bank)
Authorized Signatories
Seal of the Bank
*Strike out whichever is not
applicable
Instructions:
Annexure-10.5
List of approved securities towards liquid assets
|
Sr. No. |
Symbol |
Security Name |
|
1 |
3IINFOTECH |
3i Infotech Limited |
|
2 |
ABAN |
Aban Offshore Ltd. |
|
3 |
ABB |
ABB Limited |
|
4 |
ABGSHIP |
ABG Shipyard Limited |
|
5 |
ABIRLANUVO |
Aditya Birla Nuvo Limited |
|
6 |
ACC |
ACC Limited |
|
7 |
ADANIENT |
Adani Enterprises Limited |
|
8 |
ADLABSFILM |
Adlabs Films Limited |
|
9 |
AIAENG |
AIA Engineering Limited |
|
10 |
AJMERA |
Ajmera Realty & Infra |
|
11 |
ALBK |
Allahabad Bank |
|
12 |
ALKALI |
Alkali Metals Limited |
|
13 |
ALOKTEXT |
Alok Industries Limited |
|
14 |
AMARAJABAT |
Amara Raja Batteries Ltd |
|
15 |
AMBUJACEM |
Ambuja Cements Ltd |
|
16 |
AMTEKAUTO |
Amtek Auto Ltd |
|
17 |
ANDHRABANK |
Andhra Bank |
|
18 |
ANSALINFRA |
Ansal Properties & Infrastructure
Limited |
|
19 |
APIL |
Alstom Projects India Limited |
|
20 |
APOLLOHOSP |
Apollo Hospitals Enterprise Ltd |
|
21 |
APOLLOTYRE |
Apollo Tyres Ltd |
|
22 |
APTECHT |
Aptech Limited |
|
23 |
AREVAT&D |
Areva
T&D India Limited |
|
24 |
ARVIND |
Arvind Limited |
|
25 |
ASHOKLEY |
Ashok Leyland Ltd |
|
26 |
ASIANPAINT |
Asian Paints Limited |
|
27 |
ASTRAMICRO |
Astra Microwave Products Limited |
|
28 |
AUROPHARMA |
Aurobindo Pharma Ltd |
|
29 |
AUSTRAL |
Austral Coke & Projects Limited |
|
30 |
AXISBANK |
Axis Bank Limited |
|
31 |
BAJAJ-AUTO |
Bajaj Auto Limited |
|
32 |
BAJAJHIND |
Bajaj Hindusthan Ltd |
|
33 |
BAJAJHLDNG |
Bajaj Holdings & Investment
Limited |
|
34 |
BALAJITELE |
Balaji Telefilms Ltd. |
|
35 |
BALLARPUR |
Ballarpur Industries Limited |
|
36 |
BALRAMCHIN |
Balrampur Chini Mills Ltd |
|
37 |
BANKBARODA |
Bank of |
|
38 |
BANKINDIA |
Bank of |
|
39 |
BANKRAJAS |
The Bank of Rajasthan Ltd |
|
40 |
BARTRONICS |
Bartronics India Limited |
|
41 |
BATAINDIA |
Bata India Ltd |
|
42 |
BBL |
Bharat Bijlee Ltd. |
|
43 |
BEL |
Bharat Electronics Ltd |
|
44 |
BEML |
BEML Limited |
|
45 |
BGRENERGY |
BGR Energy Systems Limited |
|
46 |
BHARATFORG |
Bharat Forge Ltd |
|
47 |
BHARTIARTL |
Bharti Airtel Limited |
|
48 |
BHARTISHIP |
Bharati Shipyard Limited |
|
49 |
BHEL |
Bharat Heavy Electricals Ltd |
|
50 |
BHUSANSTL |
Bhushan Steel Limited |
|
51 |
BINDALAGRO |
Oswal Chemicals & Fertilizers
Ltd. |
|
52 |
BIOCON |
Biocon Limited |
|
53 |
BIRLACORPN |
Birla Corporation Ltd |
|
54 |
BLUESTARCO |
Blue Star Limited |
|
55 |
BOMDYEING |
|
|
56 |
BOSCHLTD |
Bosch Limited |
|
57 |
BPCL |
Bharat Petroleum Corpn. Ltd |
|
58 |
BRFL |
Bombay Rayon Fashions Limited |
|
59 |
BRITANNIA |
Britannia Industries Ltd |
|
60 |
CADILAHC |
Cadila Healthcare Limited |
|
61 |
CAIRN |
Cairn India Limited |
|
62 |
CANBK |
Canara Bank |
|
63 |
CASTROL |
Castrol India Ltd |
|
64 |
CENTRALBK |
Central Bank of |
|
65 |
CENTURYTEX |
Century Textiles & Industries Ltd |
|
66 |
CESC |
CESC Ltd. |
|
67 |
CHAMBLFERT |
Chambal Fertilizers & Chemicals
Ltd |
|
68 |
CHENNPETRO |
Chennai Petroleum Corporation Limited |
|
69 |
CIPLA |
Cipla Ltd. |
|
70 |
CLNINDIA |
Clariant Chemicals ( |
|
71 |
CMC |
CMC Ltd |
|
72 |
COLPAL |
Colgate Palmolive ( |
|
73 |
CONCOR |
Container Corporation of India
Limited |
|
74 |
COREPROTEC |
Core Projects and Technologies
Limited |
|
75 |
COROMNFERT |
Coromandel Fertilisers Ltd. |
|
76 |
CORPBANK |
Corporation Bank |
|
77 |
CRISIL |
CRISIL Limited |
|
78 |
CROMPGREAV |
Crompton Greaves Ltd |
|
79 |
CUB |
City Union Bank Ltd. |
|
80 |
CUMMINSIND |
Cummins India Ltd. |
|
81 |
DABUR |
Dabur India Ltd |
|
82 |
DCB |
Development Credit Bank Limited |
|
83 |
DCHL |
Deccan Chronicle Holdings Ltd. |
|
84 |
DCW |
DCW Ltd |
|
85 |
DEEPAKFERT |
Deepak Fertilizers and Petrochemicals
Corporation Limited |
|
86 |
DENABANK |
Dena Bank |
|
87 |
DEWANHOUS |
Dewan Housing Finance Corporation Ltd |
|
88 |
DHANBANK |
The Dhanalakshmi Bank Ltd. |
|
89 |
DISHMAN |
Dishman Pharmaceuticals and Chemicals
Limited |
|
90 |
DISHTV |
Dish TV India Limited |
|
91 |
DIVISLAB |
Divi's Laboratories Limited |
|
92 |
DLF |
DLF Limited |
|
93 |
DREDGECORP |
Dredging Corporation of India Limited |
|
94 |
DRREDDY |
Dr. Reddy's Laboratories Ltd. |
|
95 |
EDELWEISS |
Edelweiss Capital Limited |
|
96 |
EDUCOMP |
Educomp Solutions Limited |
|
97 |
EICHERMOT |
Eicher Motors Ltd |
|
98 |
EIDPARRY |
EID Parry India Ltd. |
|
99 |
EIHOTEL |
EIH Limited |
|
100 |
EKC |
Everest Kanto Cylinder Limited |
|
101 |
ELECON |
Elecon Engineering Co Ltd |
|
102 |
ELECTCAST |
Electrosteel Castings Ltd |
|
103 |
EMCO |
Emco Limited |
|
104 |
ENGINERSIN |
Engineers India Limited |
|
105 |
ERAINFRA |
Era Infra Engineering Limited |
|
106 |
ESCORTS |
Escorts Ltd |
|
107 |
ESSAROIL |
Essar Oil Limited |
|
108 |
ESSARSHIP |
Essar Shipping Ltd. |
|
109 |
EVERONN |
Everonn Systems India Limited |
|
110 |
EXIDEIND |
Exide Industries Ltd. |
|
111 |
FCH |
Future Capital Holdings Limited |
|
112 |
FDC |
FDC Ltd. |
|
113 |
FEDERALBNK |
The Federal Bank Ltd |
|
114 |
FINANTECH |
Financial Technologies ( |
|
115 |
FORTIS |
Fortis Healthcare Limited |
|
116 |
FSL |
Firstsource Solutions Limited |
|
117 |
GAIL |
GAIL ( |
|
118 |
GAMMONIND |
Gammon India Ltd. |
|
119 |
GDL |
Gateway Distriparks Limited |
|
120 |
GEOJITBNPP |
Geojit BNP Paribas Financial Services
Limited |
|
121 |
GESHIP |
The Great Eastern Shipping Co.
Limited |
|
122 |
GHCL |
GHCL Limited |
|
123 |
GICHSGFIN |
GIC Housing Finance Ltd |
|
124 |
GIPCL |
Gujarat Industries Power Co. Ltd |
|
125 |
GITANJALI |
Gitanjali Gems Limited |
|
126 |
GLAXO |
GlaxoSmithKline Pharmaceuticals
Limited |
|
127 |
GLENMARK |
Glenmark Pharmaceuticals Ltd. |
|
128 |
GMDCLTD |
Gujarat Mineral Development
Corporation Limited |
|
129 |
GMRINFRA |
GMR Infrastructure Limited |
|
130 |
GNFC |
Gujarat Narmada Valley Fertilizer Co.
Ltd. |
|
131 |
GODREJCP |
Godrej Consumer Products Limited |
|
132 |
GODREJIND |
Godrej Industries Ltd. |
|
133 |
GPIL |
Godawari Power And Ispat limited |
|
134 |
GRAPHITE |
Graphite India Limited |
|
135 |
GRASIM |
Grasim Industries Ltd. |
|
136 |
GSFC |
Gujarat State Fertilizers &
Chemicals Ltd. |
|
137 |
GSKCONS |
GlaxoSmithKline Consumer Healthcare
Limited |
|
138 |
GSPL |
Gujarat State Petronet Limited |
|
139 |
GTL |
GTL Limited |
|
140 |
GTLINFRA |
GTL Infrastructure Limited |
|
141 |
GTOFFSHORE |
Great Offshore Limited |
|
142 |
GUJALKALI |
|
|
143 |
GUJNRECOKE |
Gujarat NRE Coke Ltd. |
|
144 |
GUJRATGAS |
Gujarat Gas Co. Ltd |
|
145 |
GVKPIL |
GVK Power & Infrastructure
Limited |
|
146 |
HAVELLS |
Havells India Limited |
|
147 |
HCC |
Hindustan Construction Co. Ltd |
|
148 |
HCL-INSYS |
HCL Infosystems Ltd |
|
149 |
HCLTECH |
HCL Technologies Ltd |
|
150 |
HDFC |
Housing Development Finance
Corporation Ltd. |
|
151 |
HDFCBANK |
HDFC Bank Ltd |
|
152 |
HDIL |
Housing Development and
Infrastructure Limited |
|
153 |
HEG |
HEG Ltd |
|
154 |
|
HeidelbergCement India Limited |
|
155 |
HEROHONDA |
Hero Honda Motors Ltd. |
|
156 |
HEXAWARE |
Hexaware Technologies Limited |
|
157 |
HIMACHLFUT |
Himachal Futuristic Communications
Limited |
|
158 |
HINDALCO |
Hindalco Industries Ltd. |
|
159 |
HINDOILEXP |
Hindustan Oil Exploration Co. Ltd |
|
160 |
HINDPETRO |
Hindustan Petroleum Corporation Ltd. |
|
161 |
HINDUNILVR |
Hindustan Unilever Limited |
|
162 |
HINDZINC |
Hindustan Zinc Ltd. |
|
163 |
HOTELEELA |
Hotel Leela Venture Ltd. |
|
164 |
IBREALEST |
Indiabulls Real Estate Limited |
|
165 |
IBSEC |
Indiabulls Securities Limited |
|
166 |
ICI |
ICI India Ltd. |
|
167 |
ICICIBANK |
ICICI Bank Ltd |
|
168 |
ICRA |
ICRA Limited |
|
169 |
ICSA |
ICSA ( |
|
170 |
IDBI |
IDBI Bank Limited |
|
171 |
IDEA |
Idea Cellular Limited |
|
172 |
IDFC |
Infrastructure Development Finance
Company Limited |
|
173 |
IFCI |
IFCI Limited |
|
174 |
IGL |
Indraprastha Gas Limited |
|
175 |
INDHOTEL |
The Indian Hotels Company Limited |
|
176 |
INDIACEM |
The India Cements Limited |
|
177 |
INDIAINFO |
India Infoline Limited |
|
178 |
INDIANB |
Indian Bank |
|
179 |
INDOTECH |
Indo Tech Transformers Limited |
|
180 |
INDUSINDBK |
IndusInd Bank Limited |
|
181 |
INFOSYSTCH |
Infosys Technologies Ltd. |
|
182 |
INGERRAND |
Ingersoll Rand ( |
|
183 |
INGVYSYABK |
ING Vysya Bank Limited |
|
184 |
IOB |
Indian Overseas Bank |
|
185 |
IOC |
Indian Oil Corporation Ltd |
|
186 |
IPCALAB |
IPCA Laboratories Ltd. |
|
187 |
IRB |
IRB Infrastructure Developers Limited |
|
188 |
ISPATIND |
Ispat Industries Limited |
|
189 |
ITC |
ITC Ltd. |
|
190 |
IVRCLINFRA |
IVRCL Infrastructures & Projects
Ltd. |
|
191 |
J&KBANK |
The Jammu & Kashmir Bank Ltd. |
|
192 |
JAYSREETEA |
Jayshree Tea & Industries Ltd |
|
193 |
JETAIRWAYS |
Jet Airways ( |
|
194 |
JINDALSAW |
Jindal Saw Limited |
|
195 |
JINDALSTEL |
Jindal Steel & Power Ltd. |
|
196 |
JISLJALEQS |
Jain Irrigation Systems Limited |
|
197 |
JKCEMENT |
JK Cement Limited |
|
198 |
JKLAKSHMI |
JK Lakshmi Cement Limited |
|
199 |
JPASSOCIAT |
Jaiprakash Associates Limited |
|
200 |
JPHYDRO |
Jaiprakash Hydro-Power Limited |
|
201 |
JSL |
JSL Limited |
|
202 |
JSWSTEEL |
JSW Steel Limited |
|
203 |
JUBILANT |
Jubilant Organosys Limited |
|
204 |
JYOTISTRUC |
Jyoti Structures Ltd |
|
205 |
KALINDEE |
Kalindee Rail Nirman (Engineers)
Limited |
|
206 |
KALPATPOWR |
Kalpataru Power Transmission Ltd |
|
207 |
KARURVYSYA |
Karur Vysya Bank Ltd |
|
208 |
KEC |
KEC International Limited |
|
209 |
KESORAMIND |
Kesoram Industries Ltd. |
|
210 |
KFA |
Kingfisher Airlines Limited |
|
211 |
KLGSYSTEL |
KLG Systel Ltd. |
|
212 |
KOTAKBANK |
Kotak Mahindra Bank Limited |
|
213 |
KPIT |
KPIT Cummins Infosystems Limited |
|
214 |
KSK |
KSK Energy Ventures Limited |
|
215 |
KSOILS |
K S Oils Limited |
|
216 |
KTKBANK |
The Karnataka Bank Limited |
|
217 |
LAKSHVILAS |
Lakshmi Vilas Bank Ltd |
|
218 |
LAXMIMACH |
Lakshmi Machine Works Ltd. |
|
219 |
LICHSGFIN |
LIC Housing Finance Ltd |
|
220 |
LITL |
Lanco Infratech Limited |
|
221 |
LT |
Larsen & Toubro Limited |
|
222 |
LUPIN |
Lupin Limited |
|
223 |
M&M |
Mahindra & Mahindra Ltd. |
|
224 |
M&MFIN |
Mahindra & Mahindra Financial
Services Limited |
|
225 |
MADRASCEM |
Madras Cements Ltd. |
|
226 |
MAHABANK |
Bank of |
|
227 |
MAHLIFE |
Mahindra Lifespace Developers Limited |
|
228 |
MAHSEAMLES |
|
|
229 |
MANGCHEFER |
Mangalore Chemicals & Fertilizers
Limited |
|
230 |
MANGLMCEM |
Mangalam Cement Ltd |
|
231 |
MARICO |
Marico Limited |
|
232 |
MARUTI |
Maruti Suzuki India Limited |
|
233 |
MATRIXLABS |
Matrix Laboratories Limited |
|
234 |
MAX |
Max India Ltd |
|
235 |
MCDOWELL-N |
United Spirits Limited |
|
236 |
MCLEODRUSS |
Mcleod Russel India Limited |
|
237 |
MERCK |
Merck Limited |
|
238 |
MIC |
MIC Electronics Limited |
|
239 |
MINDTREE |
MindTree Limited |
|
240 |
MLL |
Mercator Lines Limited |
|
241 |
MONNETISPA |
Monnet Ispat Ltd |
|
242 |
MONSANTO |
Monsanto India Limited |
|
243 |
MOSERBAER |
Moser-Baer (I) Ltd |
|
244 |
MPHASIS |
MphasiS Limited |
|
245 |
MRF |
MRF Ltd. |
|
246 |
MRPL |
Mangalore Refinery and Petrochemicals
Ltd. |
|
247 |
MTNL |
Mahanagar Telephone Nigam Ltd. |
|
248 |
MUNDRAPORT |
|
|
249 |
NAGARCONST |
Nagarjuna Construction Co. Ltd |
|
250 |
NAGARFERT |
Nagarjuna Fertilizer & Chemicals
Ltd. |
|
251 |
NATIONALUM |
National Aluminium Company Limited |
|
252 |
NBVENTURES |
Nava Bharat Ventures Limited |
|
253 |
NDTV |
New Delhi Television Limited |
|
254 |
NETWORK18 |
Network 18 Fincap Limited |
|
255 |
NEYVELILIG |
Neyveli Lignite Corporation Limited |
|
256 |
NIITLTD |
NIIT Limited |
|
257 |
NIITTECH |
NIIT Technologies Limited |
|
258 |
NITINFIRE |
Nitin Fire Protection Industries
Limited |
|
259 |
NMDC |
NMDC Limited |
|
260 |
NOCIL |
NOCIL Limited |
|
261 |
NOIDATOLL |
Noida Toll Bridge Company Ltd |
|
262 |
NTPC |
NTPC Limited |
|
263 |
OFSS |
Oracle Financial Services Software
Limited |
|
264 |
OMAXE |
Omaxe Limited |
|
265 |
ONGC |
Oil & Natural Gas Corpn Ltd |
|
266 |
ONMOBILE |
OnMobile Global Limited |
|
267 |
OPTOCIRCUI |
Opto Circuits ( |
|
268 |
ORBITCORP |
Orbit Corporation Limited |
|
269 |
ORCHIDCHEM |
Orchid Chemicals &
Pharmaceuticals Ltd |
|
270 |
ORIENTBANK |
Oriental Bank of Commerce |
|
271 |
ORIENTPPR |
Orient Paper & Industries Ltd |
|
272 |
PANTALOONR |
Pantaloon Retail ( |
|
273 |
PARSVNATH |
Parsvnath Developers Limited |
|
274 |
PATELENG |
Patel Engineering Limited |
|
275 |
PATNI |
Patni Computer Systems Limited |
|
276 |
PENINLAND |
Peninsula Land Limited |
|
277 |
PETRONET |
Petronet LNG Limited |
|
278 |
PFC |
Power Finance Corporation Limited |
|
279 |
PFIZER |
Pfizer Ltd. |
|
280 |
PGHH |
Procter & Gamble Hygiene and
Health Care Limited |
|
281 |
PIRHEALTH |
Piramal Healthcare Limited |
|
282 |
PNB |
Punjab National Bank |
|
283 |
POLARIS |
Polaris Software Lab Limited |
|
284 |
POWERGRID |
Power Grid Corporation of India
Limited |
|
285 |
PRAJIND |
Praj Industries Ltd |
|
286 |
PRAKASH |
Prakash Industries Ltd |
|
287 |
PRISMCEM |
Prism Cement Limited |
|
288 |
PSL |
PSL Limited |
|
289 |
PTC |
PTC India Limited |
|
290 |
PUNJLLOYD |
Punj Lloyd Limited |
|
291 |
RADICO |
Radico Khaitan Limited |
|
292 |
RAINCOM |
Rain Commodities Limited |
|
293 |
RAJESHEXPO |
Rajesh Exports Ltd. |
|
294 |
RALLIS |
Rallis India Ltd. |
|
295 |
RANBAXY |
Ranbaxy Laboratories Ltd |
|
296 |
RAYMOND |
Raymond Ltd. |
|
297 |
RCF |
Rashtriya Chemicals and Fertilizers
Ltd. |
|
298 |
RCOM |
Reliance Communications Limited |
|
299 |
RECLTD |
Rural Electrification Corporation
Limited |
|
300 |
REIAGROLTD |
Rei Agro Limited |
|
301 |
RELCAPITAL |
Reliance Capital Limited |
|
302 |
RELIANCE |
Reliance Industries Ltd |
|
303 |
RELIGARE |
Religare Enterprises Limited |
|
304 |
RELINFRA |
Reliance Infrastructure Limited |
|
305 |
RENUKA |
Shree Renuka Sugars Limited |
|
306 |
RIIL |
Reliance Industrial Infrastructure
Limited |
|
307 |
RNRL |
Reliance Natural Resources Limited |
|
308 |
ROLTA |
Rolta India Ltd. |
|
309 |
RPL |
Reliance Petroleum Limited |
|
310 |
RPOWER |
Reliance Power Limited |
|
311 |
RUCHISOYA |
Ruchi Soya Industries Ltd. |
|
312 |
SAIL |
Steel Authority of India Ltd. |
|
313 |
SASKEN |
Sasken Communication Technologies
Limited |
|
314 |
SBIN |
State Bank of |
|
315 |
SCI |
Shipping Corporation Of India Ltd. |
|
316 |
SESAGOA |
Sesa Goa Ltd. |
|
317 |
SHIV-VANI |
Shiv-Vani Oil & Gas Exploration
Services Limited |
|
318 |
SHREEASHTA |
Shree Ashtavinayak Cine Vision
Limited |
|
319 |
SHREECEM |
Shree Cements Ltd |
|
320 |
SIEMENS |
Siemens Ltd |
|
321 |
SINTEX |
Sintex Industries Ltd. |
|
322 |
SKFINDIA |
SKF India Limited |
|
323 |
SKUMARSYNF |
S. Kumars Nationwide Ltd |
|
324 |
SOBHA |
Sobha Developers Limited |
|
325 |
SOUTHBANK |
The South Indian Bank Ltd. |
|
326 |
SPARC |
Sun Pharma Advanced Research Company
Limited |
|
327 |
SPICETELE |
Spice Communications Limited |
|
328 |
SREINTFIN |
SREI Infrastructure Finance Limited |
|
329 |
SRF |
SRF Ltd. |
|
330 |
SRTRANSFIN |
Shriram Transport Finance Co. Ltd. |
|
331 |
STAR |
Strides Arcolab Limited |
|
332 |
STER |
Sterlite Industries ( |
|
333 |
STERLINBIO |
Sterling Biotech Limited |
|
334 |
STRTECH |
Sterlite Technologies Limited |
|
335 |
SUNFLAG |
Sunflag Iron And Steel Company
Limited |
|
336 |
SUNPHARMA |
Sun Pharmaceuticals Industries Ltd |
|
337 |
SUNTV |
Sun TV Network Limited |
|
338 |
SUZLON |
Suzlon Energy Limited |
|
339 |
SYNDIBANK |
Syndicate Bank |
|
340 |
TANLA |
Tanla Solutions Limited |
|
341 |
TATACHEM |
Tata Chemicals Ltd. |
|
342 |
TATACOMM |
Tata Communications Limited |
|
343 |
TATAELXSI |
Tata Elxsi ( |
|
344 |
TATAINVEST |
Tata Investment Corporation Ltd. |
|
345 |
TATAMOTORS |
Tata Motors Limited |
|
346 |
TATAPOWER |
Tata Power Co. Ltd. |
|
347 |
TATASPONGE |
Tata Sponge Iron Ltd. |
|
348 |
TATASTEEL |
Tata Steel Limited |
|
349 |
TATATEA |
Tata Tea Ltd |
|
350 |
TCS |
Tata Consultancy Services Limited |
|
351 |
TECHM |
Tech Mahindra Limited |
|
352 |
TEXMACOLTD |
Texmaco Limited |
|
353 |
THERMAX |
Thermax Ltd |
|
354 |
TITAN |
Titan Industries Ltd. |
|
355 |
TNPL |
Tamil Nadu Newsprint & Papers Ltd |
|
356 |
TORNTPHARM |
Torrent Pharmaceuticals Ltd. |
|
357 |
TORNTPOWER |
Torrent Power Limited |
|
358 |
TRIVENI |
Triveni Engineering & Industries
Limited |
|
359 |
TTML |
Tata Teleservices ( |
|
360 |
TULIP |
Tulip Telecom Limited |
|
361 |
TV-18 |
Television Eighteen India Ltd. |
|
362 |
TVSMOTOR |
TVS Motor Company Limited |
|
363 |
TWL |
Titagarh Wagons Limited |
|
364 |
UCOBANK |
UCO Bank |
|
365 |
ULTRACEMCO |
UltraTech Cement Limited |
|
366 |
UNIONBANK |
Union Bank of |
|
367 |
UNIPHOS |
United Phosphorous Limited |
|
368 |
UNITECH |
Unitech Ltd |
|
369 |
USHAMART |
Usha Martin Limited |
|
370 |
UTTAMSTL |
Uttam Galva Steels Limited |
|
371 |
UTVSOF |
UTV Software Communications Limited |
|
372 |
VARUNSHIP |
Varun Shipping Co. Ltd. |
|
373 |
VGUARD |
V-Guard Industries Limited |
|
374 |
VIDEOIND |
Videocon Industries Limited |
|
375 |
VIJAYABANK |
Vijaya Bank |
|
376 |
VITLINFO |
Vishal Information Technologies
Limited |
|
377 |
VOLTAMP |
Voltamp Transformers Limited |
|
378 |
|
Voltas Ltd. |
|
379 |
WALCHANNAG |
Walchandnagar Industries Ltd |
|
380 |
WELGUJ |
Welspun Gujarat Stahl Rohren Limited |
|
381 |
WIPRO |
Wipro Ltd |
|
382 |
WOCKPHARMA |
Wockhardt Limited |
|
383 |
WWIL |
Wire and Wireless ( |
|
384 |
WYETH |
Wyeth Limited |
|
385 |
YESBANK |
Yes Bank Limited |
|
386 |
ZANDUPHARM |
Zandu Pharmaceutical works Ltd. |
|
387 |
ZEEL |
Zee Entertainment Enterprises Ltd |
|
388 |
ZEENEWS |
Zee News Limited |
|
389 |
ZUARIAGRO |
Zuari Industries Ltd. |
|
390 |
ZYLOG |
Zylog Systems Limited |
|
Sr.No. |
Symbol |
Security Name |
|
1 |
GOLDBEES |
Benchmark Mutual Fund - Gold Benchmark
Exchange Traded Scheme |
|
2 |
GOLDSHARE |
UTI Mutual Fund - UTI Gold Exchange Traded
Fund |
|
3 |
KOTAKGOLD |
Kotak Mutual Fund - Gold Exchange
Traded Fund |
|
4 |
NIFTYBEES |
Benchmark Mutual Fund |
|
5 |
QGOLDHALF |
Quantum Gold Fund -Exchange Traded Fund
(ETF) |
|
6 |
RELGOLD |
Reliance Mutual Fund - Gold Exchange Traded Fund |
|
7 |
SBIGETS |
SBI Mutual Fund - SBI Gold Exchange Traded Scheme - Growth Option |
|
8 |
UTISUNDER |
UTI Mutual Fund – Sunder |
|
Sr.No. |
Symbol |
Security Name |
Applicable Haircut |
|
1 |
LIQUIDBEES |
Benchmark
Asset Management Company Private Limited |
10% |
Annexure-10.6
Annexure 10.6a
Format of deed of
pledge for clearing members for deposit of securities for security deposit
To Be
Executed On Non Judicial Stamp Paper Of Rs 100/- Or In Accordance With The
Prevailing Rates Applicable In The Place Of Execution, Whichever Is Higher.
This Deed of Pledge (hereinafter referred to as “the Deed”) is executed at _______________ on this ___ day of _________ 19___ by
_______________________________, S/o / d/o / w/o __________________ residing at _____________________ and having his office at ________________________________ *
_____________________________, a partnership firm registered under the Indian Partnership Act, 1932 and having its office at __________________________________*
________________________Ltd., incorporated as a company under the Companies Act, 1956 and having its registered office at _______________________________________*
(hereinafter referred to as “Clearing Member” which expression shall unless repugnant to the context thereof include successors, administrators and assigns) in favour of National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
a) The Clearing Member is admitted to the Clearing Membership of NSCCL.
b) One of the requirement of the clearing Membership is that the Clearing Member shall maintain with NSCCL security deposits in the form of cash, bank guarantees or securities for the due performance and fulfillment by him/it of his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member including any sums due by him/it to NSCCL or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.
c) The securities to be deposited by the Clearing Member shall be securities in dematerialised form and as may be approved by NSCCL from time to time to an extent of Rs. ________ /- (Rupees ________________ only) or of such value as may be specified by NSCCL from time to time.
d) The Clearing Members shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. In consideration of NSCCL having agreed to accept approved dematerialised securities as a security deposit to an extent of Rs.____________ /- (Rupees _______________________________ only), or of such value as may be specified by NSCCL from time to time, the Clearing Member hereby pledges securities (hereinafter referred to as “Said Securities”) with NSCCL as security for due performance and fulfillment by him/it of all engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or National Stock Exchange of India Limited (hereinafter referred to as “NSEIL”) or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.
2. The Clearing Member if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Clearing Member may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Clearing Member confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which he/it owes as a Clearing Member.
3. For the purpose of the clauses (1) and (2), and for the purpose of this Deed, the term “Said Securities” shall mean all the securities lying in the Depository Account No. ___________ (hereinafter referred to as “Account”) with the custodian/depository participant and shall include all securities given in addition, substitution or replacement of the securities in the said Account. All securities lying in the said Account shall be deemed to have been pledged at all times with NSCCL by virtue of this Deed.
4. The Clearing Member declares and assures that all the Said Securities are in existence, owned by him/it and free from any prior charge, lien or encumbrance and further that all the Said Securities over which pledge may be created in future would be in existence and owned by him/it at the time of creation of such pledge and that all the Said Securities to be given in future as security to NSCCL would likewise be unencumbered, absolute and disposable property of the Clearing Member.
5. The Clearing Member agrees that he/it shall not without NSCCL’s prior written permission create any charge, lien or encumbrance of any kind upon or over the Said Securities hereby pledged except to NSCCL, that he/it shall not suffer any such charge, lien or encumbrance to affect the Said Securities or any part thereof and further that he/it shall not do or allow anything to be done that may prejudice the Said Securities while he/it remains liable to NSCCL in any manner without the prior written permission of NSCCL.
6. The Clearing Member agrees, declares and undertakes that he/it shall be bound and abide by the terms and conditions of the Scheme for the Deposit of securities in dematerialised form as formulated and determined by NSCCL, for security deposit either in their existing form or as modified/changed/altered /amended from time to time pursuant to requirement/ compliance of Clearing Membership.
7. If in the opinion of NSCCL, the Clearing Member has failed to perform and / or fails to fulfil his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or to NSEIL or to any other party arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it, then the Clearing Member agrees that NSCCL on giving one working day notice to the Clearing Member on its own as a pledgee, shall be empowered/entitled to invoke the pledge, sell, dispose of or otherwise effect any other transfer of the Said Securities in such manner and subject to such terms and conditions as it may deem fit and that the money if any realised from such pledge/sale/disposal/or other transfer shall be utilised/disbursed by NSCCL in such manner and subject to terms and conditions as it may deem fit and further the Clearing Member shall do all such things, deeds, acts and execute all such documents as are necessary to enable NSCCL to effect such pledge/sale/disposal/or other transfer. The decision of NSCCL as to the obligations or liabilities or commitments of the Clearing Member and the amount claimed shall be final and binding on the Clearing Member. The Clearing Member understood and agrees that one working day notice mentioned above shall be deemed to be a reasonable notice, as this pledge of securities is being accepted as security deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a days time and also due to the nature of transactions on NSCCL.
8. The Said Securities pledged as security shall be available at the disposal of NSCCL as a continuing security and remain available in respect of the obligations, liabilities or commitments of the Clearing Member jointly or severally and may be utilised as such in the discretion of NSCCL, as if each of the obligations, liabilities or commitments is secured by the Said Securities. This Deed shall not be considered as cancelled or in any way affected on its utilisation for meeting any specific obligation, liability or commitment by NSCCL but shall continue and remain in operation in respect of all subsequent obligations, liabilities or commitments of the Clearing Member.
9. The Clearing Member shall be released from his/its obligations, liabilities under this Deed only when NSCCL, in writing, expressly provides for the release of the Said Securities.
10. The Clearing Member agrees that NSCCL shall be entitled to sell, negotiate or otherwise transfer the Said Securities and to execute transfer documents and/or any other necessary documents, wherever applicable or other endorsements for this purpose and that NSCCL shall be entitled to receive from him/it all expenses incurred by NSCCL/Custodian for the aforesaid purposes.
11. The Clearing Member agrees to execute such further documents whether of a legal nature or otherwise as may be required by NSCCL for the purpose of giving effect to the provisions of this Deed and also the Scheme for the Deposit of securities in dematerialised form.
12. The Clearing Member agrees that the deposit of the ‘Said Securities’ and the pledge thereof shall not be affected in any manner whatsoever if NSCCL takes any action against the Clearing Member including suspension or expulsion or declaration of the Clearing Member as a defaulter.
13. The Clearing Member agrees that NSCCL shall not be under any liability whatsoever to the Clearing Member or any other person for any loss, damage, expenses, costs etc, arising out of the deposit of the Said Securities, in any manner, due to any cause whatsoever, irrespective of whether the Said Securities shall be in the possession of the NSCCL or not at the time of such loss or damage or the happening of the cause thereof. The Clearing Member shall at all times indemnify and keep indemnified NSCCL from and against all suits, proceedings, costs, charges, claims and demands whatsoever that may at any time arise or be brought or made by any person against NSCCL in respect of any acts, matters and things lawfully done or caused to be done by NSCCL in connection with the Said Securities or in pursuance of the rights and powers of NSCCL under this Deed.
14. The Clearing Member undertakes that the deposit of the ‘Said securities’ and the pledge thereof shall be binding on him/it as continuing and that it shall not be prejudiced by his/its failure to comply with the Rules, Bye-laws or Regulation of NSCCL or any other terms and conditions attendant to the Clearing membership of NSCCL and that NSCCL shall be at liberty, without thereby affecting his/its rights against him/it hereunder or in relation to the ‘Said securities’ or to any other security now or hereafter held or taken at any time to vary, amend change or alter any terms or conditions of its Rules, Bye laws or Regulations of NSCCL in general or as applicable to him / it in particular.
Executed at _____________ on the day, month and year above mentioned.
Signed, sealed and delivered by the withinnamed **
Clearing Member.
________________________
in the presence of witnesses
1.
2.
* strike out whichever is not applicable
** To be signed by
the Clearing member in case of individual.
all partners in case of a Partnership firm
by any two of the following persons in the case of a Company:
i. Managing Director
ii. Whole-time Director
iii. Directors
Annexure 10.6b
Format of deed of
pledge for other than clearing members for deposit of securities for security
deposit
To Be
Executed On Non Judicial Stamp Paper Of Rs 100/- Or In Accordance With The
Prevailing Rates Applicable In The Place Of Execution, Whichever Is Higher.
This Deed of Pledge (hereinafter referred to as “the Deed”) is executed at _______________ on this ___ day of _________ 19___ by _______________________________, S/o / d/o / w/o __________________ residing at _______________________________and having his office at ______________________ (hereinafter referred to as “Pledgor” which expression shall unless repugnant to the context thereof include successors, administrators and assigns) in favour of National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
a) Mr/Ms _____________________ s/o / d/o / w/o ___________________ residing at ____________________________ and having his/her/their office at ________________________ (hereinafter referred to as the Clearing Member, which expression shall include his/its successors and assigns)*
M/s ____________________________ , a partnership firm registered under the Indian Partnership Act, 1932 and having their office at _______________________________________ (hereinafter referred to as the Clearing member, which expression shall include their successors and assigns)*
M/s ______________________________ Limited, incorporated as a company under the Companies Act, 1956 and having its registered office at ____________________
(hereinafter referred to as the Clearing member, which expression shall include its successors and assigns) * is/are a Clearing member of the NSCCL.
b) One of the requirement of the Clearing Membership is that the Clearing Member shall maintain with NSCCL security deposits in the form of cash, bank guarantees or securities for the due performance and fulfilment by him/it of his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member including any sums due by him/it to NSCCL or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried on or entered into by him/it.
c) The securities to be deposited by the Clearing Member or any other person, as a security for such Clearing member shall be securities in dematerialised form and as may be approved by NSCCL from time to time to an extent of Rs. ___________/- (Rupees ______________________ only) or of such value as may be specified by NSCCL from time to time.
d) At the request of the Clearing member and as permitted by NSCCL, the Pledgor has agreed to offer securities in the dematerialised form as a security for the purpose of security deposit requirement as aforesaid.
e) The Pledgor shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.
NOW IT IS HEREBY AGREED BY AND BETWEEN THE
PARTIES AS FOLLOWS:
1. In consideration of the NSCCL having agreed to accept approved dematerialised securities as a security deposit to an extent of Rs.____________ /- (Rupees _______________________________ only), or of such value as may be specified by NSCCL from time to time, the Pledgor hereby pledges securities (hereinafter referred to as “Said Securities”) with NSCCL as security for due performance and fulfillment by the Clearing Member of all his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or National Stock Exchange of India Limited (hereinafter referred to as “NSEIL”) or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.
2. The Pledgor if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Pledgor may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Pledgor confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which the Clearing Member owes as a Clearing Member of NSCCL.
3. For the purpose of the clauses (1) and (2), and for the purpose of this Deed, the term “Said Securities” shall mean all the securities lying in the Depository Account No. ___________ (hereinafter referred to as “Account”) with the custodian/depository participant and shall include all securities given in addition, substitution or replacement of the securities in the said Account. All securities lying in the said Account shall be deemed to have been pledged at all times with NSCCL by virtue of this Deed.
4. The Pledgor declares and assures that all the Said Securities are in existence, owned by him/it and free from any prior charge, lien or encumbrance and further that all the Said Securities over which pledge may be created in future would be in existence and owned by him/it at the time of creation of such pledge and that all the Said Securities to be given in future as security to NSCCL would likewise be unencumbered, absolute and disposable property of the Pledgor.
5. The Pledgor agrees that he/she shall not without NSCCL’s prior written permission create any charge, lien or encumbrance of any kind upon or over the Said Securities hereby pledged except to NSCCL, that he/she shall not suffer any such charge, lien or encumbrance to affect the Said Securities or any part thereof, and further that he/she shall not do or allow anything to be done that may prejudice the Said Securities while he/she remains liable to NSCCL in any manner without the prior written permission of NSCCL.
6. The Pledgor agrees, declares and undertakes that he/she shall be bound and abide by the terms and conditions of the Scheme for the Deposit of securities in dematerialised form as formulated and determined by NSCCL for security deposit, for its Clearing Members.
7. If in the opinion of NSCCL, the Clearing Member has failed to perform and / or fails to fulfil his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or to NSEIL or to any other party arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it, then the Pledgor agrees that NSCCL on giving one working day notice to the Pledgor on its own as a pledgee, shall be empowered/entitled to invoke the pledge, sell, dispose of or otherwise effect any other transfer of the Said Securities in such manner and subject to such terms and conditions as it may deem fit and that the money if any realised from such pledge/sale/disposal/or other transfer shall be utilised/disbursed by NSCCL in such manner and subject to terms and conditions as it may deem fit and further the Pledgor shall do all such things, deeds, acts and execute all such documents as are necessary to enable NSCCL to effect such pledge/sale/disposal/or other transfer. The decision of NSCCL as to the obligations or liabilities or commitments of the Clearing Member and the amount claimed shall be final and binding on the Pledgor. The Pledgor understood and agrees that one working day notice mentioned above shall be deemed to be a reasonable notice, as this pledge of securities is being accepted as security deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a days time and also due to the nature of transactions on NSCCL.
8. The Said Securities pledged as security shall be available at the disposal of NSCCL as a continuing security and remain available in respect of the obligations, liabilities or commitments of the Clearing Member jointly or severally and may be utilised as such in the discretion of NSCCL, as if each of the obligations, liabilities or commitments is secured by the Said Securities. This Deed shall not be considered as cancelled or in any way affected on its utilisation for meeting any specific obligation, liability or commitment by NSCCL but shall continue and remain in operation in respect of all subsequent obligations, liabilities or commitments of the Clearing Member.
9. The Pledgor shall be released from his/its obligations, liabilities under this Deed only when NSCCL, in writing, expressly provides for the release of the Said Securities.
10. The Pledgor agrees that NSCCL shall be entitled to sell, negotiate or otherwise transfer the Said Securities and to execute transfer documents and/or any other necessary documents, wherever applicable or other endorsements for this purpose and that NSCCL shall be entitled to receive from him/her all expenses incurred by NSCCL/Custodian for the aforesaid purposes.
11. The Pledgor agrees to execute such further documents whether of a legal nature or otherwise as may be required by NSCCL for the purpose of giving effect to the provisions of this Deed and also the Scheme for the Deposit of securities in dematerialised form.
12. The Pledgor agrees that the deposit of the ‘Said Securities’ and the pledge thereof shall not be affected in any manner whatsoever if NSCCL takes any action against the Clearing Member including suspension or expulsion or declaration of the Clearing Member as a defaulter.
13. The Pledgor agrees that NSCCL shall not be under any liability whatsoever towards the Pledgor or any other person for any loss, damage, expenses, costs, etc arising out of the deposit of the Said Securities in any manner, due to any cause, whatsoever, irrespective of whether the Said Securities shall be in the possession of the NSCCL or not at the time of such loss or damage or the happening of the cause thereof. The Pledgor shall at all times indemnify and keep indemnified NSCCL from and against all suits, proceedings, costs, charges, claims and demands whatsoever that may at any time arise or be brought or made by any person against NSCCL in respect of any acts, matters and things lawfully done or caused to be done by NSCCL in connection with the Said Securities or in pursuance of the rights and powers of NSCCL under this Deed.
14. The Pledgor undertakes that the deposit of the ‘Said securities’ and the pledge thereof shall be binding on him/her as continuing and that it shall not be prejudiced by the Clearing Members failure to comply with the Rules, Bye-laws or Regulation of NSCCL or any other terms and conditions attendant to the Clearing membership of NSCCL and that NSCCL shall be at liberty, without thereby affecting its rights against him/ her hereunder or in relation to the ‘Said securities’ or to any other security now or hereafter held or taken at any time to vary, amend change or alter any terms or conditions of its Rules, Bye laws or Regulations of NSCCL in general or as applicable to him / it in particular.
Executed at _____________ on the date, month and year above mentioned.
Signed, sealed and delivered by the withinnamed
Pledgor.
________________________
in the presence of witnesses
1.
2.
* strike out whichever is not applicable
Annexure-10.7
Format of Letters to be submitted along with FDR towards Margin Deposit
Annexure-10.7a
Format for Submission of FDR towards Margin
Deposit to the Custodian
Date:
(To
be typed on member's letter head)
To
Name
& Address of Custodian (Capital
Market Segment)
Dear
Sir,
As
per requirements of National Securities Clearing Corporation Limited
(NSCCL) and in compliance of prescribed
norms of NSCCL, I/ we hereby furnish margin
deposit with you in the form of Fixed Deposit Receipts (FDRs) (FDR
No.---------) placed with ____________________________ Bank, issued in favour
of “Custodian Name” A/c. “Member Name” for Rs. ______/- (Rupees
___________________________ only).
I/
We hereby agree and consent that as the custodian of NSCCL, you shall have an
irrevocable authority to encash the said FDR and to withdraw the said FDR
amount at any time, even prior to maturity, without notice to me/ us for
recovery/ adjustment of NSCCL/ NSEIL dues and we have no objections whatsoever
for the same.
I/We
agree that you may renew the FDR for periods of one year each time till the FDR
is released by NSCCL.
I/we
agree that on the encashment of FDR, NSCCL will also be entitled to the
interest accrued on the said FDR and you are hereby authorised to pay the
accrued interest to NSCCL alongwith the principal amount (FDR amount) payable.
Yours
faithfully,
Authorised
Signatory
________
Member name and Code
Annexure-10.7b
Format of Letter to be given by the
Bank issuing the Margin Deposit FDR to the Custodian
(Typed
on the letterhead of the bank)
Date:
To
Name
& Address of the Custodian
Dear
Sir,
We
refer to the fixed deposit receipt (FDR) bearing no. ______________ issued for
Rs.__________, (Rs in words) in your name A/c “member's name”
We
hereby agree and confirm that:
i.)
There
is no lock in period for encashment of the said FDR.
ii.)
The
amount under the said FDR would be paid to you on demand, at any point of time
without any reference to the ________________ (name of member).
iii.)
Encashment
whether premature or otherwise would not require any clearance from any other
authority / person.
iv.)
On
encashment of the FDR by you, the interest accrued thereon will also be
released to you.
v.)
The
FDR will be renewed for such periods as may be instructed by you.
vi.)
The
FDR is payable at Mumbai (In case FDR is issued from places other than Mumbai;
Yours
faithfully,
Authorised Signatory
For __________ Bank Ltd.
Annexure-10.7 c
Format for submission of FDR towards Margin Deposit to NSCCL
To
National
Securities Clearing Corporation Ltd (Capital
Market Segment)
Exchange
Plaza
Bandra
Kurla Complex
Bandra
(E)
Mumbai-400
051
Dear
Sir,
As per requirements of National Securities
Clearing Corporation Limited (NSCCL) and in compliance of prescribed norms of
NSCCL, we have to furnish you margin
deposit and accordingly have furnished you the same in the form of FDR (FDR
No-_____________) placed with ____________________________ Bank, issued
as NSCCL A/c. “Member Name” for Rs.
______/- (Rupees ______________________ only.)
I/We
hereby agree and consent that you shall have an irrevocable authority to encash
the said FDR and to withdraw the said FDR amount at any time, even prior to
maturity, without notice to me/us for recovery/adjustment of NSCCL/NSEIL dues
and we have no objections whatsoever for the same.
I/We
agree that you may renew the FDR for period of one year each time till the FDR
is released by you.
I/we
agree that on the encashment of FDR, you will be entitled to the interest
accrued on the said FDR and you are hereby authorised to receive the accrued
interest from the Bank along with the principal amount (FDR amount) payable.
Yours
faithfully,
Authorised
Signatory
________
Member name and Code
Annexure-10.7d
Format of Letter to be given by the Bank issuing
the Margin Deposit FDR to NSCCL
(Typed on the letterhead of the
bank)
Date:
To
National
Securities Clearing Corporation Ltd
Exchange Plaza,
Plot C-1, G Block,
Bandra-Kurla
Complex, Bandra (East),
Mumbai – 400
051
Dear Sir,
We refer to
the fixed deposit receipt (FDR) bearing no. ______________ issued for
Rs.___________, in the name of NSCCL - A/c “Member
Name”.
We hereby agree
and confirm that
i.)
There is no lock in period for encashment of the said FDR.
ii.)
The amount under the said FDR would be paid to you on demand, at any
point of time without any reference to the ________________ (name of member).
iii.)
Encashment whether premature or otherwise would not require any
clearance from any other authority / person.
iv.)
On encashment of the FDR by you, the interest accrued thereon will also
be released to you.
v.)
The FDR will be renewed for such periods as may be instructed by you.
vi.)
The FDR is payable at Mumbai. (In case FDR is issued from places other
than Mumbai,
Yours
faithfully,
Authorised Signatory
For__________
Bank Ltd.
Annexure 10.8
Annexure 10.8a
Format of deed of
pledge for clearing members for deposit of securities for margin deposit
To Be
Executed On Non Judicial Stamp Paper Of Rs 100/- Or In Accordance With The
Prevailing Rates Applicable In The Place Of Execution, Whichever Is Higher.
This Deed of Pledge (hereinafter referred to as “the Deed”) is executed at _______________ on this ___ day of _________ 19___ by
_______________________________, S/o / d/o / w/o __________________ residing at _____________________ and having his office at ________________________________ *
_____________________________, a partnership firm registered under the Indian Partnership Act, 1932 and having its office at __________________________________*
________________________Ltd., incorporated as a company under the Companies Act, 1956 and having its registered office at _______________________________________*
(hereinafter referred to as “Clearing Member” which expression shall unless repugnant to the context thereof include successors, administrators and assigns) in favour of National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
a) The Clearing Member is admitted to the Clearing Membership of NSCCL.
b) One of the requirement of the Clearing Membership is that the Clearing Member if desirous of availing additional exposure, shall maintain with NSCCL margin deposit in the form of cash, bank guarantees or securities for the due performance and fulfilment by him/it of his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member including any sums due by him/it to NSCCL or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.
c) The securities to be deposited by the Clearing Member shall be securities in dematerialised form and as may be approved by NSCCL from time to time.
d) The
Clearing Members shall deposit the securities with such custodians acting as
depository participants as may be determined by NSCCL from time to time.
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. In consideration of NSCCL having agreed to accept approved dematerialised securities as margin deposit to an extent of Rs._________ /- (Rupees ___________________only), the Clearing Member hereby pledges securities (hereinafter referred to as “Said Securities”) with NSCCL as security for due performance and fulfillment by him/it of all engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or National Stock Exchange of India Limited (hereinafter referred to as “NSEIL”) or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.
2. The Clearing Member if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Clearing Member may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Clearing Member confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which he/it owes as a Clearing Member.
3. For the purpose of the clauses (1) and (2), and for the purpose of this Deed, the term “Said Securities” shall mean all the securities lying in the Depository Account No. _______________ (hereinafter referred to as “Account”) with the custodian/depository participant and shall include all securities given in addition, substitution or replacement of the securities in the said Account. All securities lying in the said Account shall be deemed to have been pledged at all times with NSCCL by virtue of this Deed.
4. The Clearing Member declares and assures that all the Said Securities are in existence, owned by him/it and free from any prior charge, lien or encumbrance and further that all the Said Securities over which pledge may be created in future would be in existence and owned by him/it at the time of creation of such pledge and that all the Said Securities to be given in future as security to NSCCL would likewise be unencumbered, absolute and disposable property of the Clearing Member.
5. The Clearing Member agrees that he/it shall not without NSCCL’s prior written permission create any charge, lien or encumbrance of any kind upon or over the Said Securities hereby pledged except to NSCCL, that he/it shall not suffer any such charge, lien or encumbrance to affect the Said Securities or any part thereof, and further that he/it shall not do or allow anything to be done that may prejudice the Said Securities while he/it remains liable to NSCCL in any manner without the prior written permission of NSCCL.
6. The Clearing Member agrees, declares and undertakes that he/it shall be bound and abide by the terms and conditions of the Scheme for the Deposit of securities in dematerialised form as formulated and determined by NSCCL, for margins, considered as margin deposit, either in their existing form or as modified/changed/altered /amended from time to time pursuant to requirement / compliance of Clearing Membership.
7. If in the opinion of NSCCL, the Clearing Member has failed to perform and / or fails to fulfil his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or to NSEIL or to any other party arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it, then the Clearing Member agrees that NSCCL on giving one working day notice to the Clearing Member on its own as a pledgee, shall be empowered/entitled to invoke the pledge, sell, dispose of or otherwise effect any other transfer of the Said Securities in such manner and subject to such terms and conditions as it may deem fit and that the money if any realised from such pledge/sale/disposal/or other transfer shall be utilised/disbursed by NSCCL in such manner and subject to terms and conditions as it may deem fit and further the Clearing Member shall do all such things, deeds, acts and execute all such documents as are necessary to enable NSCCL to effect such pledge/sale/disposal/or other transfer. The decision of NSCCL as to the obligations or liabilities or commitments of the Clearing Member and the amount claimed shall be final and binding on the Clearing Member. The Clearing Member understood and agrees that one working day notice mentioned above shall be deemed to be a reasonable notice, as this pledge of securities is being accepted as margin deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a days time and also due to the nature of transactions on NSCCL.
8. The Said Securities pledged as security shall be available at the disposal of NSCCL as a continuing security and remain available in respect of the obligations, liabilities or commitments of the Clearing Member jointly or severally and may be utilised as such in the discretion of NSCCL, as if each of the obligations, liabilities or commitments is secured by the Said Securities. This Deed shall not be considered as cancelled or in any way affected on its utilisation for meeting any specific obligation, liability or commitment by NSCCL but shall continue and remain in operation in respect of all subsequent obligations, liabilities or commitments of the Clearing Member.
9. The Clearing Member shall be released from his/her obligations, liabilities under this Deed only when NSCCL, in writing, expressly provides for the release of the Said Securities.
10. The Clearing Member agrees that NSCCL shall be entitled to sell, negotiate or otherwise transfer the Said Securities and to execute transfer documents and/or any other necessary documents, wherever applicable or other endorsements for this purpose and that NSCCL shall be entitled to receive from him/her all expenses incurred by NSCCL/Custodian for the aforesaid purposes.
11. The Clearing Member agrees to execute such further documents whether of a legal nature or otherwise as may be required by NSCCL for the purpose of giving effect to the provisions of this Deed and also the Scheme for the Deposit of securities in dematerialised form.
12. The Clearing Member agrees that the deposit of the ‘Said Securities’ and the pledge thereof shall not be affected in any manner whatsoever if NSCCL takes any action against the Clearing Member including suspension or expulsion or declaration of the Clearing Member as a defaulter.
13. The Clearing Member agrees that NSCCL shall not be under any liability whatsoever to the Clearing Member or any other person for any loss, damage, expenses, costs etc, arising out of the deposit of the Said Securities, in any manner, due to any cause, whatsoever, irrespective of whether the Said Securities shall be in the possession of the NSCCL or not at the time of such loss or damage or the happening of the cause thereof. The Clearing Member shall at all times indemnify and keep indemnified NSCCL from and against all suits, proceedings, costs, charges, claims and demands whatsoever that may at any time arise or be brought or made by any person against NSCCL in respect of any acts, matters and things lawfully done or caused to be done by NSCCL in connection with the Said Securities or in pursuance of the rights and powers of NSCCL under this Deed.
14. The Clearing Member undertakes that the deposit of the ‘Said securities’ and the pledge thereof shall be binding on him/them as continuing and that it shall not be prejudiced by his/its failure to comply with the Rules, Bye-laws or Regulation of NSCCL or any other terms and conditions attendant to the Clearing membership of NSCCL and that NSCCL shall be at liberty, without thereby affecting its rights against him/ it hereunder or in relation to the ‘Said securities’ or to any other security now or hereafter held or taken at any time to vary, amend change or alter any terms or conditions of its Rules, Bye laws or Regulations of NSCCL in general or as applicable to him / it in particular.
Executed at _____________ on the day, month and year above mentioned.
Signed, sealed and delivered by the withinnamed **
Clearing Member.
________________________
in the presence of witnesses
1.
2.
* strike out whichever is not applicable
** To be signed by
the Clearing member in case of individual.
all partners in case of a Partnership firm
by any two of the following persons in the case of a Company:
i. Managing Director
ii. Whole-time Director
iii. Directors
Annexure 10.8b
FORMAT OF DEED OF
PLEDGE FOR OTHER THAN CLEARING MEMBERS FOR DEPOSIT OF SECURITIES FOR MARGIN
DEPOSIT
To Be
Executed On Non Judicial Stamp Paper Of Rs 100/- Or In Accordance With The
Prevailing Rates Applicable In The Place Of Execution, Whichever Is Higher.
This Deed of Pledge (hereinafter referred to as “the Deed”) is executed at _______________ on this ___ day of _________ 19___ by_______________________________, S/o / d/o / w/o __________________ residing at _______________________________and having his office at ______________________ (hereinafter referred to as “Pledgor” which expression shall unless repugnant to the context thereof include successors, administrators and assigns) in favour of National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
a) Mr/Ms _____________________ s/o / d/o / w/o ___________________ residing at ____________________________ and having his/her/their office at ________________________ (hereinafter referred to as the Clearing Member, which expression shall include his successors and assigns)*
M/s ____________________________ , a partnership firm registered under the Indian Partnership Act, 1932 and having their office at ____________________________________ (hereinafter referred to as the Clearing member, which expression shall include their successors and assigns)*
M/s ______________________________ Limited, incorporated as a company under the Companies Act, 1956 and having its registered office at ____________________
(hereinafter referred to as the Clearing member, which expression shall include its successors and assigns) * is/are a Clearing member of the NSCCL.
b) One of the requirement of the Clearing Membership is that the Clearing Member if desirous of availing additional exposure, shall maintain with NSCCL margin deposit in the form of cash, bank guarantees or securities for the due performance and fulfillment by him/it of his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member including any sums due by him/it to NSCCL or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried on or entered into by him/it.
c) The securities to be deposited by the Clearing Member or any other person, as a security for such Clearing member shall be securities in dematerialised form and as may be approved by NSCCL from time to time.
d) At the request of the Clearing member and as permitted by NSCCL, the Pledgor has agreed to offer securities in the dematerialised form as a security for the purpose of margin deposit as aforesaid.
e) The Pledgor shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. In consideration of the NSCCL having agreed to accept approved dematerialised securities as margin deposit to an extent of Rs._______ /- (Rupees ____________________ only), the Pledgor hereby pledges securities (hereinafter referred to as “Said Securities”) with NSCCL as security for due performance and fulfilment by the Clearing Member of all his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or National Stock Exchange of India Limited (hereinafter referred to as “NSEIL”) or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.
2. The Pledgor if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Pledgor may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Pledgor confirms, affirms and covenants with NSCCL that he/she shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which the Clearing Member owes as a Clearing Member of NSCCL.
3. For the purpose of the clauses (1) and (2), and for the purpose of this Deed, the term “Said Securities” shall mean all the securities lying in the Depository Account No. ___________ (hereinafter referred to as “Account”) with the custodian/depository participant and shall include all securities given in addition, substitution or replacement of the securities in the said Account. All securities lying in the said Account shall be deemed to have been pledged at all times with NSCCL by virtue of this Deed.
4. The Pledgor declares and assures that all the Said Securities are in existence, owned by him/it and free from any prior charge, lien or encumbrance and further that all the Said Securities over which pledge may be created in future would be in existence and owned by him/her at the time of creation of such pledge and that all the Said Securities to be given in future as security to NSCCL would likewise be unencumbered, absolute and disposable property of the Pledgor.
5. The Pledgor agrees that he/she shall not without NSCCL’s prior written permission create any charge, lien or encumbrance of any kind upon or over the Said Securities hereby pledged except to NSCCL, that he/she shall not suffer any such charge, lien or encumbrance to affect the Said Securities or any part thereof, and further that he/she shall not do or allow anything to be done that may prejudice the Said Securities while he/she remains liable to NSCCL in any manner without the prior written permission of NSCCL.
6. The Pledgor agrees, declares and undertakes that he/she shall be bound and abide by the terms and conditions of the Scheme for the Deposit of securities in dematerialised form as formulated and determined by NSCCL, for margin deposit, considered as margin deposit, for its Clearing members.
7. If in the opinion of NSCCL, the Clearing Member has failed to perform and / or fails to fulfil his engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or to NSEIL or to any other party arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it, then the Pledgor agrees that NSCCL on giving one working day notice to the Pledgor on its own as a pledgee, shall be empowered/entitled to invoke the pledge, sell, dispose of or otherwise effect any other transfer of the Said Securities in such manner and subject to such terms and conditions as it may deem fit and that the money if any realised from such pledge/sale/disposal/or other transfer shall be utilised/disbursed by NSCCL in such manner and subject to terms and conditions as it may deem fit and further the Pledgor shall do all such things, deeds, acts and execute all such documents as are necessary to enable NSCCL to effect such pledge/sale/disposal/or other transfer. The decision of NSCCL as to the obligations or liabilities or commitments of the Clearing Member and the amount claimed shall be final and binding on the Pledgor. The Pledgor understood and agrees that one working day notice mentioned above shall be deemed to be a reasonable notice, as this pledge of securities is being accepted as margin deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a days time and also due to the nature of transactions on NSCCL.
8. The Said Securities pledged as security shall be available at the disposal of NSCCL as a continuing security and remain available in respect of the obligations, liabilities or commitments of the Clearing Member severally and may be utilised as such in the discretion of NSCCL, as if each of the obligations, liabilities or commitments is secured by the Said Securities. This Deed shall not be considered as cancelled or in any way affected on its utilisation for meeting any specific obligation, liability or commitment by NSCCL but shall continue and remain in operation in respect of all subsequent obligations, liabilities or commitments of the Clearing Member.
9. The Pledgor shall be released from his/her obligations, liabilities under this Deed only when NSCCL, in writing, expressly provides for the release of the Said Securities.
10. The Pledgor agrees that NSCCL shall be entitled to sell, negotiate or otherwise transfer the Said Securities and to execute transfer documents and/or any other necessary documents, wherever applicable or other endorsements for this purpose and that NSCCL shall be entitled to receive from him/her all expenses incurred by NSCCL/Custodian for the aforesaid purposes.
11. The Pledgor agrees to execute such further documents whether of a legal nature or otherwise as may be required by NSCCL for the purpose of giving effect to the provisions of this Deed and also the Scheme for the Deposit of securities in dematerialised form.
12. The Pledgor agrees that the deposit of the ‘Said Securities’ and the pledge thereof shall not be affected in any manner whatsoever if NSCCL takes any action against the Clearing Member including suspension or expulsion or declaration of the Clearing Member as a defaulter.
13. The Pledgor agrees that NSCCL shall not be under any liability whatsoever to the Pledgor or any other person for any loss, damage, expenses, costs etc arising out of the deposit of the Said Securities, in any manner, due to any cause whatsoever, irrespective of whether the Said Securities shall be in the possession of the NSCCL or not at the time of such loss or damage or the happening of the cause thereof. The Pledgor shall at all times indemnify and keep indemnified NSCCL from and against all suits, proceedings, costs, charges, claims and demands whatsoever that may at any time arise or be brought or made by any person against NSCCL in respect of any acts, matters and things lawfully done or caused to be done by NSCCL in connection with the Said Securities or in pursuance of the rights and powers of NSCCL under this Deed.
14. The Pledgor undertakes that the deposit of the ‘Said securities’ and the pledge thereof shall be binding on him/it as continuing and that it shall not be prejudiced by the Clearing Members failure to comply with the Rules, Bye-laws or Regulation of NSCCL or any other terms and conditions attendant to the Clearing membership of NSCCL and that NSCCL shall be at liberty, without thereby affecting its rights against him/ it hereunder or in relation to the ‘Said securities’ or to any other security now or hereafter held or taken at any time to vary, amend change or alter any terms or conditions of its Rules, Bye laws or Regulations of NSCCL in general or as applicable to him / it in particular.
Executed at _____________ on the day, month and year above mentioned.
Signed, sealed and delivered by the withinnamed
Pledgor.
_______________________
in the presence of witnesses
1.
2.
* strike out whichever is not applicable
Annexure-10.9
Format of letter requesting activation of account in Collateral Interface
for Members
Date:
The Manager
Collaterals Department
NSCCL
Dear Sir/ Madam,
Sub: Application for activation of
account in Collateral Interface for Members
We
are interested in availing the facilities provided through the Collateral
Interface for Member (CIM). We therefore request you to activate our account
and provide us necessary access in the said interface.
Please
find below the necessary details as required:
|
S No |
Particulars |
To be filled by the Member |
|
1. |
Trading Member Code |
|
|
2. |
Member Name |
|
|
3. |
Segment for which application is
being made (Cash/F&O/CDS/All 3 segments) |
|
|
4. |
Contact Person (The account details will be sent to this person) |
|
|
5. |
Address for Communication with Pin Code |
|
|
6. |
Phone Number with STD Code |
|
|
7. |
Mobile number of contact person |
|
|
8. |
Fax Number with STD Code |
|
|
9. |
Email id for correspondence in
matters related to the interface ( preferably a corporate mail id) |
|
|
10. |
No of User Ids required |
|
We
hereby authorize NSCCL to act upon the instructions sent through the interface
and we shall be solely responsible for any errors pertaining to data entry from
our end.
We
would request you to advise us the account details allotted to us for this
purpose at the above mentioned address.
Yours
sincerely,
Authorized
Signatory
Name:
Designation:
Note:
1.
Since the CIM application is common for the CM, CDS and F&O
segments, user accounts shall be common for members across the segments. Hence
once enabled in a segment, member need not request for an account in other
segment.
2.
With respect to cash deposits, the rejected records, if any, that have
not been received by the Clearing Corporation will be visible to the member at
the front end application.
3. The benefit to /release
of the total liquid assets shall be carried out subject to successful receipt
of the request at the clearing corporation and the relevant policies as
applicable from time to time.
Annexure-10.10
Format of Member Letter for shifting FDR from F&O segment/ Currency Derivatives Segment to CM Segment
(To be
typed on Member’s letter head)
To
Date :
National
Securities Clearing Corporation Ltd.
Exchange Plaza,
Bandra Kurla Complex,
Bandra (E),
Mumbai - 400 051.
Dear Sir,
Re: Fixed Deposit
Receipt for Rs. _____vide FDR No.____for Capital Market Segment
Member
Code
: ____________
Bank Name : ______________
Fixed Deposit
Receipt No : ______________
Fixed Deposit
Receipt Amount : ______________
Issue
Date
: ______________
Maturity
Date : ______________
NSCCL
Reference No. :
________________
We
refer to the above FDR issued on our behalf in your favour towards the *margin
deposit / security deposit of the *Futures
and Options Segment/ Currency Derivatives Segment of National Securities
Clearing Corporation Ltd. (NSCCL). As we intend to make the said FDR available
towards our *margin deposit in the Capital
Market Segment, we have instructed the bank vide our letter dated ________
to make the said FDR available as a security for meeting, satisfying,
discharging or fulfilling all or any of our obligation or liability arising in
the Capital Market segment as
directed and decided by NSCCL with no reference to us.
Hence the
above FDR may be treated as if issued on our behalf towards the *margin deposit
/security deposit of the Capital Market
Segment of NSCCL.
Yours
faithfully,
Authorised
Signatory
(Authorised
only by Director/ Partner/ Proprietor)
* Strike out whichever is not applicable and
the same should be authorised by the authorised signatory
Annexure-10.11
Format of Bank Letters in case of auto renewal of FDR
Annexure-10.11a
Bank Letters - Auto renewal of FDR - where there is change in FDR number
(To be typed on Bank’s letter
head)
To Date:
National Securities Clearing Corporation Ltd
Exchange Plaza,C-1, Block G,
Bandra Kurla Complex,
Bandra (East)
Mumbai 400 51
Dear Sir,
We refer to the fixed deposit receipt (FDR) issued, in
the name of NSCCL - A/c “Member Name”.
Details are as under.
|
FDR No |
Issue Date |
Amount (in Rs.) |
Maturity Date |
|
|
|
|
|
The above FDR has been renewed for further period of
_____months under the autorenewal facility on the request of the member.
Details are as follows.
|
New FDR No |
Issue Date |
New Maturity Date |
Amount (in Rs.) |
|
|
|
|
|
We hereby agree and confirm that
i.)
There is no lock in period for encashment of the said FDR.
ii.)
The amount under the said FDR would be paid to you on demand, at any
point of time without any reference to the ________________ (name of member).
iii.)
Encashment whether premature or otherwise would not require any
clearance from any other authority / person.
iv.)
On encashment of the FDR by you, the interest accrued thereon will also
be released to you.
v.)
The FDR will be renewed for such periods as may be instructed by you.
vi.)
The FDR is payable at Mumbai. (In case FDR is issued from places other
than Mumbai,
vii.) Old instrument will
remain valid and no new instrument with new FDR No._____ is issued.
Yours faithfully,
Authorised Signatory
__________ Bank
Ltd
Annexure-10.11b
Bank Letters - Auto renewal of FDR - where there is no change in FDR
number
(To be typed on Bank’s letter
head)
To Date:
National Securities Clearing
Corporation Ltd
Exchange Plaza, C-1, Block G,
Bandra Kurla Complex,
Bandra (East)
Mumbai 400 51
Dear Sir,
We refer to the fixed deposit receipt (FDR) issued, in the name of NSCCL
- A/c “Member's Name”. Details are as
under.
|
FDR No |
Issue Date |
Amount (in Rs.) |
Maturity Date |
|
|
|
|
|
The above FDR has been renewed for further period of
_____months under the autorenewal facility on the request of the member.
Details are as follows.
|
Renewal Date |
Amount (in Rs.) |
New Maturity Date |
|
|
|
|
We hereby agree and confirm that
i.)
There is no lock in period for encashment of the said FDR.
ii.)
The amount under the said FDR would be paid to you on demand, at any
point of time without any reference to the ________________ (name of member).
iii.)
Encashment whether premature or otherwise would not require any
clearance from any other authority / person.
iv.)
On encashment of the FDR by you, the interest accrued thereon will also
be released to you.
v.)
The FDR will be renewed for such periods as may be instructed by you.
vi.)
The FDR is payable at Mumbai. (In case FDR is issued from places other
than Mumbai,
vii.) Old instrument will
remain valid.
Yours faithfully,
Authorised Signatory
__________ Bank Ltd
Annexure-10.12
Format of Member Letter for shifting Bank Guarantee from F&O segment/ Currency Derivatives Segment to Capital Market Segment
(To be typed on Member's letter
head)
To Date:
National Securities Clearing Corporation Ltd.
Collaterals Department,
Bandra Kurla Complex,
Bandra (East),
Mumbai - 400 051.
Dear Sir,
Re: Bank Guarantee for Rs. ____vide BG
No.____for Capital Market Segment
Member Code :
____________
Bank Name : ______________
Bank Branch : ______________
City :
______________
Bank Guarantee No : ______________
Bank Guarantee Amount : ______________
Issue Date : ______________
Maturity Date : ______________
Last Claim date : ______________
NSCCL Reference No : ______________
We refer to the above Guarantee issued on our
behalf in your favour towards the margin deposit of the *F&O segment/ Currency Derivatives Segment of National
Securities Clearing Corporation Ltd. (NSCCL). As we intend to make the said
bank guarantee available towards our margin deposit in the Capital Market segment, we have instructed the bank vide our letter
dated ________ to make the said guarantee available as a security for meeting,
satisfying, discharging or fulfilling all or any of our obligation or liability
arising in the Capital Market segment
as directed and decided by NSCCL with no reference to us.
Pursuant to our request the bank has issued to
you an amendment letter dated ______ agreeing and confirming to make the said
guarantee available as a security for meeting, satisfying, discharging or
fulfilling all or any of our obligation or liability arising in the Capital Market segment as directed and decided by NSCCL with no reference
to us.
Hence the above bank guarantee may be treated
as if issued on our behalf towards the margin deposit of the Capital Market segment of NSCCL.
Yours faithfully,
Authorised Signatory
(Authorised only by Director/ Partner/
Proprietor)
* strike out whichever is not applicable
Annexure-10.13
Format of Bank amendment letter for shifting Bank Guarantee from F&O
segment/ Currency Derivatives Segment to Capital
Market Segment
(ON STAMP PAPER OF THE SAME VALUE AS THE
ORIGINAL BANK GUARANTEE OR RS. 100/= WHICHEVER IS HIGHER)
Date : ___________
To,
National Securities Clearing Corporation
Limited
Exchange Plaza,
Plot C-1, G
Block,
Bandra Kurla Complex, Bandra (East),
Mumbai - 400 051.
We, ______________________________________
having our registered office at______________________________ refer to the Bank
Guarantee number: _________ executed by us on the ________day of _______ at
_______ (hereinafter referred to as "Said Guarantee") on account
of
__________________________________________having its registered office
at ________________________________________________ (hereinafter referred to as
'Clearing Member') for a sum of Rs ______________Rupees ___________________________________________________only)
in your favour.
We, now at the request and desire of the
Clearing Member, do hereby irrevocably and unconditionally guarantee to pay a
sum of Rs. ___________/-, (Rupees ________________________ only) to National
Securities Clearing Corporation Limited. (hereinafter referred to as NSCCL) as
a security for due performance and fulfilment by the Clearing Member of
his/her/its engagements, commitments,
obligations or liabilities as a Clearing Member of NSCCL including any
sums due by the Clearing Member to NSCCL or any other person as decided by
NSCCL arising out of or incidental to any contracts made, executed, undertaken,
carried on or entered into or purported so to be, by the Clearing Member in the
Capital Market Segment. The Bank agrees and confirms that the said
guarantee shall be available as a security for meeting, satisfying, discharging
or fulfilling all or any obligation or liability of the Clearing Member arising
out of or incidental to any contracts made, executed, undertaken, carried on or
entered into or purported so to be, by the Clearing Member in the Capital Market Segment.
We hereby affirm and confirm that save and
except to the extent as provided for herein above, the Said Guarantee together
with all other terms and conditions therein shall remain operational and in
full force and effect.
Signed for and on behalf of
__________________________________ on this ____________ day of
_____________________ at ___________________.
FOR ________________________________(BANK)
________________________________(BRANCH)
AUTHORIZED SIGNATORIES
SEAL OF THE BANK
Annexure 10.14
Format for Renewal of Bank Guarantee towards Margin Deposit and Security Deposit
Date: ___________
To,
National Securities Clearing Corporation Ltd.
Exchange Plaza, Plot C-1, G Block,
Bandra Kurla Complex,
Bandra (East),
Mumbai – 400 051.
We,
____________________________________________ (Bank) having our registered
office at _____________________________________________________________and our
branch office at ______________________________________________________
_______________________________ refer to the Bank Guarantee number :
_________ executed by us on the
___________ day of _______________ 199_/200_ at __________ (hereinafter
referred to as “said guarantee”) on account of Mr. / Ms./ M/s. ____________
________________________ having his/her/
its/registered office at ________________
_______________________________________________________________________
(hereinafter referred to as a ‘Clearing Member’) for a sum of Rs ______________
(Rupees _________________________________________only) in your favour.
The validity of the said guarantee was upto
____________________________.
With reference to the same we state as
hereunder:
At the request of the Clearing Member, we
extend the period of the validity of the said guarantee upto
__________________.
The said guarantee may be invoked by NSCCL in
part(s) without affecting its rights to invoke the said guarantee for any
liabilities that may devolve later.
Notwithstanding anything mentioned herein
above,
a) the liability of the Bank under this
guarantee shall not exceed Rs. _______________ (Rupees
________________________________________ only)
b) This guarantee shall be valid for a
period of _____months i.e. upto _____________.
c) The bank is liable to pay the
guaranteed amount only if NSCCL serves upon the Bank a written claim or demand
on or before ________________(i.e. within ___ months after the date of expiry
of the bank guarantee as mentioned in clause b above).
We hereby affirm and confirm that save and
except to the extent as provided for herein above, the said guarantee together
with all other terms and conditions therein shall remain operational and in
full force and effect till _________________________.
Executed this ____day of____________ at
_____________ (place).
FOR ________________________________(BANK)
________________________________(BRANCH)
AUTHORIZED SIGNATORIES
SEAL OF THE BANK
·
Strike out whichever is not
applicable
Instructions:
1)
The above printed format is required
to be used.
2) The Bank Guarantee to
be stamped for Rs.100/- or the value prevailing in the State where executed,
whichever is higher. Bank Guarantee to be executed on Non-Judicial stamp paper(s) or on paper franked from
Stamp Office
3)
All the blanks in the format are
required to be duly filled by the issuing bank along with the signature of the
authorised signatory and seal of the bank.
4)
Each page of the bank guarantee
should bear the bank guarantee number and issue date and should be signed by
two authorised signatories of the bank unless the bank has specifically
intimated NSCCL that only one authorised signatory shall sign the bank
guarantees issued by them in favour of NSCCL.
Annexure 10.15
File Format for Requesting Collateral Releases
File name: C_RRQ_DDMMYYYY_NN.CSV
Where C is Segment indicator
RRQ is release request
DDMMYYYY is the request date which
should be current date
NN is sequential file batch number
The file should be CSV file with the following columns
|
Segment Indicator |
C |
|
Member Code |
Member Code |
|
Type of Collateral |
BC/ABC |
|
Instrument Type |
CSH/BGN/FDP/SDP/NMF/CMF |
|
Instrument ID |
Applicable only for BGN/FDP |
|
Custodian Code |
To be provided only in case of SDP/CNF/NMF |
|
Security Symbol |
To be provided only in case of SDP/CMF/NMF |
|
Requested Quantity |
To be provided only in case of SDP/CMF/NMF |
|
Requested Amount |
To be provided only in case of BGN/FDP/CSH in
Rs. In case of SDP/CMF/NMF it should be typed as NA |
Notes:
Annexure 11.1
File Format for Category of
Securities
File
location
This file would be
generated and disseminated everyday on the extranet server
Naming
convention:
<C_CATG_<MONYYYY>.Tnn
where,
MONYYYY - is the applicable month and year for which the file is generated
T - is the file indicator
nn - is the batch number
The file will be CSV file.
Control Record
|
Sr. No. |
Field |
Length |
Mandatory/ Optional |
Description |
|
1. |
Record Type |
Number(2) |
Mandatory |
Record Type – Value is 10 |
|
2.
|
Applicable Month |
Char(3) |
Mandatory |
Applicable Month - MON |
|
3. |
Applicable Year |
Char(4) |
Mandatory |
Applicable Year- YYYY |
|
4. |
Total Number of detail records |
Number(6) |
Mandatory |
Total Number of Detail Records in the file |
Detail Record Format
|
Sr. No. |
Field |
Length |
Mandatory / Optional |
Description |
|
1. |
Record Type |
Number(2) |
Mandatory |
Record Type – Value is 20 |
|
2. |
Security Symbol |
Char(10) |
Mandatory |
Security Symbol |
|
3. |
Security Series |
Char(2) |
Mandatory |
Security Series |
|
4. |
ISIN |
Char(12) |
Mandatory |
ISIN of that security |
|
5. |
Security Category |
Char(1) |
Mandatory |
Security Category applicable on that security in the following month. |
|
6. |
Security Impact Cost |
Number(5,2) |
Mandatory |
Security Impact Cost |
Annexure 11.2
Methodology for computation of MTM Margin
For a Client A, his MTM profit/ loss would be
calculated separately for his positions on T-1 and T day (two different rolling
settlements). For the same day positions of the client, his losses in some
securities can be set off/netted against profits of some other securities.
Thus, we would arrive at the MTM loss/profit figures of the two different days
T and T-1. These two figures cannot be netted. Any loss will have to be
collected and same will not be setoff against profit arising out of positions
of the other day.
Thus, as stated above MTM profits / losses
would be computed for each of the clients; Client A, Client B, Client C etc. As
regards collection of margin from the broker, the MTM would be grossed across
all the clients i.e. no setoff of loss of one client with the profit of another
client. In other words, only the losses will be added to give the total MTM
loss that the broker has to deposit with the exchange.
|
Client |
Security |
T-1 day |
T day |
|
Total profit/loss of
Client |
|
MTM for broker |
|
Client A |
Security X |
800 |
300 |
|
|
|
|
|
|
Security Y |
-500 |
-1200 |
|
|
|
|
|
|
Total |
300 |
-900 |
|
-900 |
|
|
|
|
|
|
|
|
|
|
|
|
Client B |
Security Z |
700 |
-400 |
|
|
|
|
|
|
Security W |
-1000 |
800 |
|
|
|
|
|
|
Total |
-300 |
400 |
|
-300 |
|
|
|
|
|
|
|
|
|
|
|
|
Client C |
Security X |
1000 |
500 |
|
|
|
|
|
|
Security Z |
-1500 |
-800 |
|
|
|
|
|
|
Total |
-500 |
-300 |
|
-800 |
|
|
|
|
|
|
|
|
|
|
|
|
Client D |
Security Y |
700 |
-200 |
|
|
|
|
|
|
Security R |
-300 |
800 |
|
|
|
|
|
|
Total |
400 |
600 |
|
1000 |
|
|
|
|
|
|
|
|
|
|
|
|
Member |
|
|
|
|
|
|
-2000 |
In this example, the
broker has to deposit MTM Margin of Rs 2000.
Annexure
11.3
File Format for Detail Margin
Report
File location
This
file would be generated and disseminated everyday on the extranet server in the
member’s report directory
Naming convention:
C_MG02_<mem_cd>_DDMMYYYY.csv.gz.
Where
DDMMYYYY - Is the report date
The file will be CSV file.
Client wise,
security wise margin record
Record Type – Value will be 10
Client Code
Security Symbol
Security Series
Settlement Type
Settlement Number
Buy Qty
Buy Value
Sell Qty
Sell Value
Net Open Qty
Net Open value
MTM Price
MTM Profit/Loss
Margin Amount
Client wise,
mark to market record
Record Type – Value will be 20
Client Code
Settlement
type
Settlement
Number
MTM
Profit/ Loss
Client wise,
total margin record
Record Type – Value will be 30
Client Code
Margins
MTM
Loss
Total
Margins
Security
wise, margin record
Record Type – Value will be 40
Security Symbol
Security Series
Open Qty
Open value
Margin
%
Margin
Member wise,
total margin record
Record Type – Value will be 50
Margins
MTM
Loss
Total Margins
Annexure 11.4
Example
for computation of Gross positions of a member
Value
in Rs
|
Client |
Security |
Settlement |
Buy Value |
Sell Value |
Net Value |
|
Client A |
Security X |
2005001 |
1000 |
1100 |
-100 |
|
|
Security Y |
2005002 |
3000 |
2550 |
450 |
|
|
|
|
|
|
|
|
Client B |
Security Z |
2005001 |
1500 |
1650 |
-150 |
|
|
Security Y |
2005002 |
3000 |
1650 |
1350 |
|
|
|
|
|
|
|
|
Client C |
Security X |
2005001 |
4500 |
2400 |
2100 |
|
|
Security Z |
2005002 |
7000 |
10450 |
-3450 |
|
|
|
|
|
|
|
|
Proprietary Position |
Security Y |
2005001 |
250 |
1200 |
-950 |
|
|
Security Z |
2005002 |
1050 |
0 |
1050 |
|
|
|
|
|
|
|
|
Member’s Gross Position |
|
|
|
|
|
|
|
Security X |
2005001 |
|
|
2200 |
|
|
Security Y |
2005001 |
|
|
950 |
|
|
Security Z |
2005001 |
|
|
150 |
|
|
Security X |
2005002 |
|
|
0 |
|
|
Security Y |
2005002 |
|
|
1800 |
|
|
Security Z |
2005002 |
|
|
4500 |
Annexure
11.5
File Format for VAR Margin File
File location
This
file would be generated and disseminated everyday at the end and during the day
on the extranet server in the common/var rate directory
Naming convention:
C_VAR1_DDMMYYYY_N.DAT
where
<DDMMYYYY>
represents the current date,
‘N’
represents file batch number for the day.
Control Record
|
Field name |
Length |
Mandatory/optional |
Description |
|
Record type |
Char(2) |
Mandatory |
Value is 10 |
|
Date |
Char(8) |
Mandatory |
Date on which file is
generated |
|
Daily Index VAR |
Number(5,2) |
Mandatory |
|
|
Total records |
Number(7) |
Mandatory |
Total no. of detail
record |
Detail Record
|
Field name |
Length |
Mandatory/optional |
Description |
|
Record type |
Char(2) |
Mandatory |
Value is 20. |
|
Sec symbol |
Char(10) |
Mandatory |
|
|
Sec series |
Char(2) |
Mandatory |
|
|
ISIN |
Char(12) |
Mandatory |
|
|
Security VAR |
Number(5,2) |
Optional |
|
|
Index VAR |
Number(5,2) |
Optional |
|
|
VAR margin |
Number(5,2) |
Mandatory |
|
|
Extreme loss rate |
Number(5,2) |
Mandatory |
|
|
Ad-hoc margin |
Number(5,2) |
Mandatory |
|
|
Daily margin rate |
Number(5,2) |
Mandatory |
|
Annexure 11.6
Format of application form for new CDSL EPI accounts with NSCCL
Date:
The
Manager
Securities
Department
NSCCL
Dear
Sir,
Sub:
Account for early pay-in of securities through CDSL
We
are interested in making early pay-in of securities through CDSL. We therefore
request you to open an early pay-in account based on the details given
hereunder:
|
S
No |
Description |
|
|
|
Name of the Member |
|
|
|
5 digit Trading Member Code |
|
|
|
SEBI Registration Number |
|
|
|
Address (for Communication) |
|
|
|
City |
|
|
|
State |
|
|
|
Country |
|
|
|
Pin code |
|
|
|
CDSL Clearing Account No. |
|
|
|
PAN No. |
(Copy of PAN card should be enclosed for
verification) |
We
hereby authorise NSCCL to operate the above stated account on our behalf and
execute transactions as may be deemed necessary. Further, we hereby authorise
NSCCL to debit our account towards any charges that may be levied by CDSL on
account of transactions in this account.
We
would request you to advise us the account number allotted to us for this
purpose.
Yours
Sincerely
Authorised Signatory
Name:
Designation:
Annexure
11.7
Format for Client level early pay-in files for securities
Format of files to be uploaded by the member giving
client & quantity details
The file should be in CSV format.
Naming convention:
<XXXXX>_CLNTEPI_YYYYMMDD.Ynn
where,
XXXXX - Is the member code
YYYYMMDD - Date in YYYYMMDD format
Y - The file indicator (T in this case for
upload)
nn -
The batch number of file to be uploaded.
Control record:
|
Sr. No. |
Field |
Length |
Mandatory/ Option |
Description |
|
1. |
Record Type |
CHAR(2) |
Mandatory |
Value = 01 |
|
2. |
File Type |
CHAR(4) |
Mandatory |
Value = CLEP |
|
3. |
Member Type |
CHAR(1) |
Mandatory |
Member Type |
|
4. |
Member Code |
CHAR(5) |
Mandatory |
Member code for which file generated/received |
|
5. |
Batch Date |
CHAR(8) |
Mandatory |
Format : DDMMYYYY Should be same as that in the file name. |
|
6. |
Batch number |
Number(2) |
Mandatory |
The batch number of the file sent. |
|
7. |
Number of records |
Number(7) |
Mandatory |
Total number of records in the file |
Detail record:
|
Sr. No. |
Field |
Length |
Mandatory/ Option |
Description |
|
1. |
Record Type |
CHAR(2) |
Mandatory |
Value = 20 |
|
2. |
Symbol |
CHAR(10) |
Mandatory |
|
|
3. |
Series |
CHAR(2) |
Mandatory |
|
|
4. |
Client Code |
CHAR(20) |
Mandatory |
|
|
5. |
Settlement Type |
CHAR(1) |
Mandatory |
|
|
6. |
Settlement No |
CHAR(7) |
Mandatory |
|
|
7. |
Early Payin Quantity |
NUMBER |
Mandatory |
|
Return file
In case the file uploaded by the member gets rejected,
then the file extension ‘Tnn’ will get replaced with ‘Rnn’ and the return file
will be downloaded to the members in CEP directory. The control record in the
file will have R appended.
The naming convention for return
files will be:
<XXXXX>_CLNTEPI_YYYYMMDD.Rnn
In case the file is accepted (success) then the file
extension ‘Tnn’ will get replaced with ‘Snn’ and the return file will be
downloaded to the members in CEP directory. The return file with extension
‘Snn’ will have S appended for successful records and R appended for rejected
records.
The naming convention for return
files will be:
<XXXXX>_CLNTEPI_YYYYMMDD.Snn
Note:
1.
Member should mention the total quantity for the clients to whom EPI
needs to be allocated. If member wants to change the EPI once allocated to a
client, the same needs to be provided in the next file with the revised
quantity and the old quantity will get updated with the revised quantity. If
member wants to remove the EPI benefit given earlier to a client, a record
needs to be sent in the subsequent file with the revised quantity as zero.
Where the quantity is specified for a client as zero the client will become
eligible for random allocation.
2.
Wherever allocation is specified by the member for a client
-security-settlement type- settlement number, EPI will be specifically
allocated to that client irrespective whether the client has any outstanding
sell position or not and such clients shall not be considered for random
allocation. Even if the client is allocated excess EPI, the excess will not be
considered in the pool for random allocation.
3.
Where the member has to provide EPI for his proprietary position, he has
to specify client code as his member code, and in case he wants to specify EPI
for OTR Un-allocation and non-contraction he has to specify the client code as
PRO_Memcode.
4.
At the end of the day EPI allocation will be done on the same lines as
intra day i.e. first specific and then random.
5.
Specific client level EPI should be given only for all open settlements
6.
Members are requested to verify the benefit received in the EPI report
downloaded.
EPI Allocation details
downloaded to the members - File format
A file will be downloaded to the members in the CEP
directory providing the following details. The file name shall be
<XXXXX>_CEPYYYYMMDD.Dnn
XXXXX -
Is the member code
YYYYMMDD - Date
in YYYYMMDD format
D -
The file indicator
nn -
The batch number of file to be uploaded.
Report file structure is as follows:
Control record
10,DDMMYYYY, Member Code, Number of Records
Detail record (Allocated Quantity)
20, Settlement Type, Settlement Number, Symbol,
Series, Client Code, Quantity Requested, Quantity Allocated
Detail record (Balance Quantity)
30, Settlement Type, Settlement Number, Symbol,
Series, Balance Quantity
Annexure 11.8
Format of files to be uploaded by the member/custodian
giving client wise details of early pay-in of funds
The file shall be in CSV format.
Naming convention:
CLNTEPF_N_XXXXXXX_YYYYMMDD.Ynn
where,
N - Settlement type (Should be N for normal
segment and W for trade for trade segment)
XXXXXXX - Settlement number (e.g “2008001”)
YYYYMMDD - Date in YYYYMMDD format
Y - The file indicator (T in this case for
upload)
nn -
The batch number of file to be uploaded.
Control record:
|
Sr. No. |
Field |
Length |
Mandatory/ Option |
Description |
|
|
Record Type |
CHAR(2) |
Mandatory |
Value = 01 |
|
|
File Type |
CHAR(7) |
Mandatory |
Value = CLNTEPF |
|
|
Member Code |
CHAR(5) |
Mandatory |
Member code for which file generated/received |
|
|
Batch Date |
CHAR(8) |
Mandatory |
Format : YYYYMMDD Should be same as that in the file name. |
|
|
Batch number |
Number(2) |
Mandatory |
The batch number of the file sent. |
|
|
Settlement Type |
CHAR(1) |
Mandatory |
Settlement type for which EPI is made. Should be N
for normal segment and W for trade for trade segment |
|
|
Settlement No |
CHAR(7) |
Mandatory |
Settlement number (e.g
“2008001”) |
|
|
Number of records |
Number(7) |
Mandatory |
Total number of records in the file |
|
|
Total value of EPI |
Number (15,2) |
Mandatory |
Total amount of early pay-in across all clients |
Detail record:
|
Sr. No. |
Field |
Length |
Mandatory/ Option |
Description |
|
1.
|
Record Type |
CHAR(2) |
Mandatory |
Value = 20 |
|
2.
|
Client Code |
CHAR(12) |
Mandatory |
|
|
3.
|
Amount of funds early
pay-in (in Rs.) |
Number (15,2) |
Mandatory |
|
Return file
In case the file uploaded by the member gets rejected,
then the file extension ‘Tnn’ will get replaced with ‘Rnn’ and the return file
will be downloaded to the members in CEP directory in extranet. The control
record in the file will have R appended.
The naming convention for return
files will be:
<XXXXX>_CLNTEPF_N_XXXXXXXX_YYYYMMDD.Rnn
In case the file is accepted (success) then the file
extension ‘Tnn’ will get replaced with ‘Snn’ and the return file will be
downloaded to the members in CEP directory in extranet. The return file with
extension ‘Snn’ will have S appended for successful records and R appended for
rejected records.
The naming convention for return
files will be:
<XXXXX>_CLNTEPF_
N_XXXXXXXX_YYYYMMDD.Snn
Annexure
11.9
Example
of computation of offsetting positions
Example: A hypothetical Index Q with constituent underlying stocks A & B have weight-ages as stated below. Based on the weight-ages the number of units required to be considered as a complete replica is computed as under:
|
Underlying |
Weight% |
Units Required |
|
Index Q |
|
50 |
|
Stock A |
60 |
30 |
|
Stock B |
40 |
20 |
The portfolio will be considered as a complete replica if the client has Long 50 units of Index Q Futures and Short positions in Stock A/Stock Futures A to extent of 30 units and short positions in Stock B/Stock Futures B to the extent of 20 units.
Assuming a client has the following positions in his portfolio. A (+) sign indicates a long position and (-) indicates a short position.
|
Underlying |
Expiry / Month |
Open Position |
|
Index Q Futures |
Jan 09 |
+50 |
|
Feb 09 |
-75 |
|
|
Stock futures of A |
Jan 09 |
-20 |
|
Feb 09 |
+70 |
|
|
Stock futures of B |
Jan 09 |
-60 |
|
Feb 09 |
+10 |
|
|
Position in Stock A (CM Segment) |
|
-50 |
|
Position in Stock B (CM Segment) |
|
+30 |
The cross margin benefit shall be provided as under:
Index Futures to Constituent Stocks/Stock Futures positions
|
Underlying |
Expiry Month |
Benefit qty |
|
Index Q Futures |
Jan 09 |
50 |
|
Stock futures of A |
Jan 09 |
-20 |
|
Position in Stock A (CM Segment) |
|
-10 |
|
Stock futures of B |
Jan 09 |
-20 |
|
|
|
|
|
Index Q Futures |
Feb 09 |
-50 |
|
Stock futures of A |
Feb 09 |
30 |
|
Stock futures of B |
Feb 09 |
10 |
|
Position in Stock B (CM Segment) |
|
10 |
Stock Futures to Stocks
|
Underlying |
Expiry Month |
Benefit qty |
|
Stock futures of A |
Feb 09 |
40 |
|
Position in Stock A (CM Segment) |
|
-40 |
|
Stock futures of B |
Jan 09 |
-20 |
|
Position in Stock B (CM Segment) |
|
20 |
Annexure 11.10
Format of files to be uploaded by the clearing member
giving client wise details
The file shall be in CSV format.
Naming convention: CMPYYYYMMDD.Tnn
where:
<YYYYMMDD> is the current date
and ‘nn’ is the batch number of the file
The files are required to be uploaded in the following path on the CIM -Home Page> Cross Margin> File upload
Control record:
|
Sr. No. |
Field |
Length |
Description |
|
1. |
Record Type |
CHAR(2) |
Value = 01 |
|
2. |
File Type |
CHAR(3) |
Value = CMP |
|
3. |
Member Code |
CHAR(5) |
Primary Member code of the clearing member |
|
4. |
Batch Date |
CHAR(8) |
Format : YYYYMMDD Should be same as that in the file name |
|
5. |
Number of records |
Number(7) |
Total number of records in the file |
Detail record:
|
Sr. No. |
Field |
Length |
Description |
|
1. |
Record Type |
CHAR(2) |
Value : 10 for proprietary code 20 for retail client code 30 for Custodial Participant code
|
|
2. |
Code |
CHAR(12) |
Value : For proprietary code it shall be PRO_TMCODE For retail client code it shall be client code allotted to the client and used during order execution For Custodial Participant code it shall be 12 digit alphanumeric code allotted by NSCCL for such custodial participant
|
Return files:
The files uploaded by the member shall be processed and return files shall be downloaded in CIM. Members can check the return files at
Home Page> Cross Margin> File download
In case the file uploaded by the member gets rejected, then the file extension ‘Tnn’ will get replaced with ‘Rnn’
The naming convention for return files will be:
<XXXXX>_CMPYYYYMMDD.Rnn
Where XXXXX shall be the Primary member code
<YYYYMMDD> is the trade date
and ‘nn’ is the batch number of the file
In case the file is accepted (success) then the file extension ‘Tnn’ will get replaced with ‘Snn’ and the return file will be downloaded to the members on CIM. The return file with extension ‘Snn’ will have S appended for successful records and F appended for rejected records.
The naming convention for return files will be:
<XXXXX>_CMPYYYYMMDD.Snn
Where XXXXX shall be the Primary member code
<YYYYMMDD> is the trade date
and ‘nn’ is the batch number of the file
Members are required to take note of following whilst uploading the client codes eligible for cross margining-
Annexure 11.11
AGREEMENT BETWEEN MEMBER, CUSTODIAN &
CONSTITUENT
This agreement is made on this ____ day of ____ 2009
Between
______________, a company/ partnership firm/ individual having its registered office/ office/ residence at ___________________ (hereinafter referred to as “the Member”) which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) of the First Part
And
_____________, a company incorporated under the Companies Act, 1956 and having its registered office at, _________________ and its corporate office at _____________(hereinafter referred to as “the Custodian”) which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) of the Second Part
And
__________________________, a company/ partnership firm/ individual having its registered office/ office/ residence at ___________________ (hereinafter called “the Constituent”) which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) of the Third Part.
WHEREAS,
1. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) vide its Circular No. SEBI/DNPD/Cir-44/2008 dated 2nd December 2008 has decided to extend cross margining facility across cash and derivatives segments to all categories of market participants.
2. Pursuant to the said direction of SEBI, in order to facilitate cross margining, the inter-se distribution of liability/responsibility in the event of default are to be laid down in the agreements.
3. The Member is registered as a Clearing Member of National Securities Clearing Corporation Ltd. (hereinafter referred to as “NSCCL”) and has agreed to clear & settle the trades done by the Constituent through a trading member or trading members of National Stock Exchange of India Ltd. (hereinafter referred to as “NSEIL”) subject to the provisions contained in the Rules, Bye Laws, Regulations and Circulars of NSCCL (Futures & Options Segment) and the terms and conditions contained herein.
4. The Custodian is registered as a Clearing Member of NSCCL. The Custodian clears and settles the trades done by the Constituent in the Capital Market Segment as a Clearing Member of NSCCL.
5. The Constituent is desirous of availing the cross margining facility and has approached the Member and the Custodian.
6. The Member and the Custodian has agreed to request NSCCL to provide the benefit of cross margining to the Constituent subject to the terms and conditions contained herein.
Now therefore this agreement witnesseth and it is hereby agreed by and between the parties hereto as under
1. The Member and the Constituent entered into Custodial Participant Agreement (hereinafter referred to as Custodial Participant Agreement) on ___________ at _______ wherein the Member at the request of the Constituent, agreed to clear & settle the trades done by the Constituent through a trading member or trading members of NSEIL subject to the provisions contained in the Rules, Bye Laws and Regulations of NSCCL (Futures & Options Segment) and the terms and conditions contained therein.
2. The Custodian and the Constituent entered into an Custodian and Client Agreement (hereinafter to as Custodian Agreement) on ___________ at _______ wherein the Constituent has engaged the services of Custodian.
3. In addition to the provisions contained in the Custodial Participant Agreement and the Custodian Agreement and notwithstanding anything contained in the said agreements, the parties agrees to be bound by the following provisions which are specific to cross margining.
4. Cross Margining
4.1 The Member and the Custodian have agreed to request NSCCL to extend cross margining facility to the Constituent subject to the terms and conditions as contained herein and the Constituent agree to avail the same.
4.2 The parties agree to be bound by SEBI Circular No SEBI/DNPD/Cir-44/2008 dated 2nd December, 2008 and Circulars issued by SEBI from time to time with respect to cross margining.
4.3 The parties agree to be bound by the Rules, Byelaws, Regulations and Circulars issued from time to time by NSEIL/NSCCL including provisions with respect to cross margining.
4.4 The parties agree that cross margin benefit shall be for such positions in one or more trading segments/clearing segments and shall be subject to such terms and conditions as may be prescribed by NSEIL/NSCCL if any from time to time.
4.5 In case of default by the Clearing Members arising out of the positions in one or more clearing segments, the Constituent agrees and understands that NSCCL may utilise the margins or any other monies furnished in any clearing segment by its Clearing Members, who clears and settles the deals pertaining to the Constituent, in order to meet the obligations arising out of such positions.
4.6 In case of default by the Clearing Members arising out of the positions in one or more clearing segments, the Constituent agrees and understands that the outstanding positions of Clearing Members, who clears and settles the deals pertaining to the Constituent, in any or all clearing segments may be closed out by NSCCL in accordance with Rules, Byelaws, Regulations and Circulars issued from time to time by NSCCL.
IN WITNESS THEREOF, the parties to agreement have caused these presents to be executed as of the day and year first above written.
Signed for and on behalf of
MEMBER :
By :
Signature :
Title :
Witness :
Signed for and on behalf of
CUSTODIAN :
By :
Signature :
Title :
Witness :
Signed for an on behalf of
CONSTITUENT :
By :
Signature :
Title :
Witness :
Instruction
1) The agreement to be stamped for Rs.100/- or the value prevailing in the State where executed, whichever is higher. Agreement to be executed on Non-Judicial stamp paper(s) or on paper franked from Stamp Office
2) All the blanks in the format are required to be duly filled and signed by the signatories to the agreement
Annexure
11.12 A
AMENDMENT AGREEMENT TO THE CLEARING MEMBER –
TRADING MEMBER AGREEMENT
This agreement is made on this ____ day of ____ 2009
Between
______________, a company/partnership firm/individual having its registered office/office/residence at ___________________ and having SEBI Registration No. ____________ (hereinafter called the Clearing Member) which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns)
And
________________________, a company/partnership firm/individual having its registered office/office/residence at ___________________ and having SEBI Registration No. ____________ (hereinafter called the Trading Member) which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns).
WHEREAS,
1. The Clearing Member and the Trading Member entered into Clearing Member and Trading Member Agreement (hereinafter referred to as “Agreement”) on ___________ at _______ ,wherein the Clearing Member has undertaken to the total exclusion of the Trading Member, the obligation of clearing and settlement of the deals of the Trading Member executed/done on the Futures & Options Segment of National Stock Exchange of India Limited (NSEIL) and to do all the acts, deeds and activities incidental to the clearing and settlement of the deals.
2. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) vide its Circular No. SEBI/DNPD/Cir-44/2008 dated 2nd December 2008 has decided to extend cross margining facility across cash and derivatives segments to all categories of market participants.
3. Pursuant to the said direction of SEBI, in order to facilitate cross margining, the inter-se distribution of liability/responsibility in the event of default are to be laid down in the agreements. Accordingly, amendments are required to be carried out in the Agreement entered into by the Clearing Member and the Trading Member.
4. The Trading Member is desirous of availing the cross margining facility and has approached the Clearing Member.
5. The Clearing Member has agreed to request NSCCL to provide the same subject to the terms and conditions contained herein.
6. In view of the above, therefore the parties hereto are desirous of amending the Agreement for the purpose of including certain specific provisions for the purpose of availing cross margin benefit.
Now therefore this agreement witnesseth and it is hereby agreed by and between the parties hereto as under:
1. Both the parties agree that after clause 5 the following clause shall be inserted as clause 5A in the Agreement.
5A Cross Margining
(1) The Clearing Member agrees to request NSCCL to extend cross margining facility to the Trading Member/constituents of the Trading Members subject to the terms and conditions as contained herein.
(2) The Trading Member agrees to intimate to the Clearing Member from time to time the constituents to whom the cross margin benefit shall be provided.
(3) The parties agree to be bound by SEBI Circular No SEBI/DNPD/Cir-44/2008 dated 2nd December, 2008 and Circulars issued by SEBI from time to time with respect to cross margining.
(4) The parties agree to be bound by the Rules, Byelaws, Regulations and Circulars issued from time to time by NSEIL/NSCCL including provisions with respect to cross margining.
(5) The parties agree that cross margin benefit shall be for such positions in one or more trading segments/clearing segments and shall be subject to such terms and conditions as may be prescribed by NSEIL/NSCCL if any from time to time.
(6) In case of default by the Clearing Member arising out of the positions in one or more clearing segments, the Trading Member agrees and understands that NSCCL may utilise the margins or any other monies furnished in any clearing segment by its Clearing Members, in order to meet the obligations arising out of such positions.
(7) In case of default by the Clearing Member arising out of the positions in one or more clearing segments, the Trading Member agrees and understands that the outstanding positions of such Clearing Members, may be closed out by NSCCL in accordance with Rules, Byelaws, Regulations and Circulars issued from time to time by NSCCL.
(8) In case of default by the Trading Member arising out of the positions in one or more clearing segments, the Clearing Member shall be entitled to utilise the margins or any other monies of the Trading Member in any other clearing segment in order to meet the obligations arising out of such positions.
(9) In case of default by the Trading Member arising out of the positions in one or more clearing segments, the Clearing Member shall be entitled to close-out the positions of the Trading Member in any or all clearing segments in accordance with Rules, Byelaws, Regulations and Circulars issued from time to time by NSCCL.
(10) The parties agree that notwithstanding anything contained in the Agreement to the contrary, the parties shall be bound by the above provisions with respect to cross margining.
IN WITNESS THEREOF, the parties to this agreement have caused these presents to be executed as of the day and year first above written.
Signed for and on behalf of
CLEARING MEMBER :
By :
Signature :
Title :
Witness :
Signed for an on behalf of
TRADING MEMBER :
By :
Signature :
Title :
Witness :
Instruction
1) The agreement to be stamped for Rs.100/- or the value prevailing in the State where executed, whichever is higher. Agreement to be executed on Non-Judicial stamp paper(s) or on paper franked from Stamp Office
2) All the blanks in the format are required to be duly filled and signed by the signatories to the agreement
Annexure 11.12 B
AGREEMENT BETWEEN STOCK BROKER & CLIENT
This agreement is made on this ____ day of ____ 2009
Between
Mr./Ms/M/s._________________, an individual/a sole proprietary concern/a partnership firm/a body corporate, registered/incorporated under the provisions of the Indian Partnership Act, 1932/the Companies Act, 1956, being a member of the National Stock Exchange of India Limited (hereinafter called “NSEIL”), and having his /her/its registered office at ___________ (hereinafter called “the Stock Broker”) which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include himself in the capacity of a trading member while trading in the derivatives segment, his/her heirs, executors, administrators and legal representatives/the partners for the time being of the said firm, the survivor or survivors of them and their respective heirs, executors, administrators and legal representatives/its successors, as the case may be, of the One Part;
And
Mr./Ms/M/s._____________, an individual/a sole proprietary concern/a partnership firm/a body corporate, registered/incorporated, under the provisions of the Indian Partnership Act, 1932/the Companies Act, 1956, having his/her/its residence/ registered office at ___________(hereinafter called “the Client”) which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include his/her heirs, executors, administrators and legal representatives/the partners for the time being of the said firm, the survivor or survivors of them and their respective heirs, executors, administrators and legal representatives/its successors, as the case may be, of the Other Part;
WHEREAS,
1. The Stock Broker and the Client entered into a Stock Broker and Client Agreement (hereinafter referred to as Client Agreement) on ___________ at _______ wherein the Client has engaged the Stock Broker to deal in securities and/or deal in derivatives contracts and to execute the Client orders through the Stock Broker.
2. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) vide its Circular No. SEBI/DNPD/Cir-44/2008 dated 2nd December 2008 has decided to extend cross margining facility across cash and derivatives segments to all categories of market participants.
3. Pursuant to the said direction of SEBI, in order to facilitate cross margining, the inter-se distribution of liability/responsibility in the event of default are to be laid down in the agreements. Accordingly, amendments are required to be carried out in the Client Agreement entered into by the Stock Broker and the Client.
4. The Client is desirous of availing the cross margining facility and has approached the Stock Broker.
5. The Stock Broker is registered as a Clearing Member of National Securities Clearing Corporation Ltd. (hereinafter referred to as “NSCCL”) and has agreed to facilitate provision of the benefit of cross margining in the Capital Market Segment as well as Futures and Options Segment and such other segment as may be specified by SEBI and NSCCL from time to time to the Client subject to the terms and conditions contained herein.
6. In view of the above, therefore the parties hereto are desirous of amending the Client Agreement for the purpose of including certain specific provisions for the purpose of availing cross margin benefit.
Now therefore this agreement witnesseth and it is hereby agreed by and between the parties hereto as under
1. Both the parties agree that after clause 21 the following clause shall be inserted as clause 21A in the Client Agreement
21A. Cross Margining
a. The Stock Broker agrees to request NSCCL to extend cross margining facility to the Client in the Capital Market Segment subject to the terms and conditions as contained herein and the Client agree to avail the same.
b. The parties agree to be bound by SEBI Circular No SEBI/DNPD/Cir-44/2008 dated 2nd December, 2008 and Circulars issued by SEBI from time to time with respect to cross margining.
c. The parties agree to be bound by the Rules, Byelaws, Regulations and Circulars issued from time to time by NSEIL/NSCCL including provisions with respect to cross margining.
d. The parties agree that cross margin benefit shall be for such positions in one or more trading segments/clearing segments and shall be subject to such terms and conditions as may be prescribed by NSEIL/NSCCL if any from time to time.
e. In case of default by the Stock Broker arising out of the positions in one or more clearing segments, the Client agrees and understands that NSCCL may utilise the margins or any other monies furnished in any clearing segment by its Clearing Members, who are clearing and settling the transactions pertaining to the Client, in order to meet the obligations arising out of such positions.
f. In case of default by the Stock Broker arising out of the positions in one or more clearing segments, the Client agrees and understands that the outstanding positions of the Stock Broker in any or all clearing segments may be closed out by NSCCL in accordance with Rules, Byelaws, Regulations and Circulars issued from time to time by NSCCL.
g. In case where cross margin benefit is to be availed by the Client for transactions executed in Futures and Options Segment, the Client agrees that the Stock Broker shall request the Clearing Member of NSCCL to avail the cross margin benefit for such transactions on behalf of the Client and such cross margin benefit shall also be subject to the terms and conditions mentioned in Clearing Member and Trading Member agreement entered into between the Clearing Member and the Stock Broker through whom transactions are cleared and settled by the Stock Broker in Futures and Options Segment and terms and conditions mentioned hereinabove shall be applicable for cross margining in Futures and Options Segment also.
h. The parties agree that notwithstanding anything contained in the Client Agreement to the contrary, the parties shall be bound by the above provisions with respect to cross margining.
IN WITNESS THEREOF, the parties to this agreement have caused these presents to be executed as of the day and year first above written.
Signed for and on behalf of
STOCK BROKER :
By :
Signature :
Title :
Witness :
Signed for an on behalf of
CLIENT :
By :
Signature :
Title :
Witness :
Instruction
1) The agreement to be stamped for Rs.100/- or the value prevailing in the State where executed, whichever is higher. Agreement to be executed on Non-Judicial stamp paper(s) or on paper franked from Stamp Office
2) All the blanks in the format are required to be duly filled and signed by the signatories to the agreement
Annexure 11.13
Details to be provided by F&O clearing member in case
where client/entity is clearing through different members in Cash and F&O
segment
1. Format of letter to be provided by Clearing member in F&O segment for availing cross margin benefit for their client
Date:
Manager
Risk Management Group
National Securities Clearing Corporation Limited
Bandra Kurla Complex,
Bandra (East), Mumbai 400 051
Dear Sir,
Sub: Details of client/entity to be made eligible for cross margining
This is with reference to your circular no.NSE/CMPT/11975 dated February 04, 2009, in respect of cross margining. In accordance with the provisions contained in this circular you are requested to provide cross margining for following client(s) clearing through us in F&O Segment.
|
Trading Member/Custodian Code/ Name |
Client Code/CP Code in F&O Segment |
Client Code/CP Code in Cash Segment |
Client/CP Name |
Permanent Account Number(PAN) of Client |
|
|
|
|
|
|
We have executed the necessary agreement as specified in the above mentioned circular with the trading member/custodian
Thanking you,
Yours sincerely
Authorised Signatories
Clearing Member Name :
Clearing Member Code :
Name:
Designation
Encl:
2. Format of letter to be provided by the custodian in case the client/entity clears through custodian in Cash segment
Date:
Manager
Risk Management Group
National Securities Clearing Corporation Limited
Bandra Kurla Complex,
Bandra (East), Mumbai 400 051
Dear Sir,
Sub: Details of client/entity to be made eligible for cross margining
This is with reference to your circular no.NSE/CMPT/11976 dated February 04, 2009, in respect of cross margining. In accordance with the provisions contained in this circular you are requested to provide cross margining for following client clearing through us in Cash Segment.
|
Clearing Member Code /Name in F&O Segment |
CP Code in Cash Segment |
CP Name |
Permanent Account Number(PAN) of Client |
|
|
|
|
|
We have executed the necessary agreement as specified in the above mentioned circular with the clearing member and constituent
Thanking you,
Yours sincerely
Authorised Signatories
Custodian Name :
Custodian Code :
Name:
Designation
3. Format of letter to be provided by trading member for availing cross margin benefit to client
Date:
Clearing Member Name
Clearing Member Code
Dear Sir,
Sub: Details of client/entity to be made eligible for cross margining
This is with reference to NSCCL circular no.NSE/CMPT/11975 dated February 04, 2009, in respect of cross margining. In accordance with the provisions contained in this circular we would like to provide cross margining for the following clients in the Cash and F&O segment.
|
Client Code in F&O Segment |
Client Code in Cash Segment |
Client Name |
Permanent Account Number(PAN) of Client |
|
|
|
|
|
We have executed the agreement as specified by NSCCL with our clients. We request you to intimate the details of the above clients to NSCCL for availing the cross margin facility.
Thanking you,
Yours sincerely
Authorised Signatories
TM Name :
TM Code :
Name:
Designation
Annexure 11.14
Format of report giving details of cross margin benefit and
off-setting positions
Cross margin benefit report (XM-01)
Naming convention: - C_XM01_<MEMBER CODE>_DDMMYYYY.csv
File location: Reports directory in Extranet folder
File details and format:
Client wise, security wise record
Record Type – Value will be 10
Client Code
Security Symbol
Security Series
Settlement Type
Settlement Number
Net Open Position in Qty
Off-setting Qty
Original Margins (A)
Margin Benefit (B)
Applicable Margins (A)-(B)
Client wise, cross margin record
Record Type – Value will be 20
Client
Code
Original
Margins (A)
Margin Benefit (B)
Applicable Margins (A)-(B)
Member wise, total margin record
Record Type – Value will be 30
Original Margins (A)
Margin Benefit (B)
Applicable Margins (A)-(B)
Annexure - 17.1
|
Sr. No. |
Corporate Benefit |
Valuation |
|
1
|
Dividend/ Interest/ Redemption amount |
All debit/credit for valid claims on company
objections lodged with the Clearing House shall be done by the Clearing
Corporation. |
|
2
|
Bonus |
IM may deliver the entire quantity of bonus
shares claimed by the RM. In case of part delivery of bonus shares, the
delivery must necessarily be in market lots. In case the IM does not deliver
the shares, the equivalent monetary value for the bonus shares shall be
debited to the IM and credited to the account of RM by the Clearing
Corporation. |
|
3
|
Rights- Equity |
IM may deliver the entire quantity of rights
shares claimed by the RM and claim the amount for issue price in the relevant
portion of form BDC-2A. In case of part delivery of rights shares, the delivery must necessarily be
in market lots. In case the IM does not deliver
the shares, the equivalent monetary value less rights issue amount shall be
debited to the IM and credited to the account of RM by the Clearing Corporation. |
|
4
|
Rights
- FCD,PCD-convertible part (which are traded on NSE) |
IM may deliver the entire quantity of rights
FCD, PCD -convertible part (which are traded on NSE) claimed by the RM and
claim the amount for issue price in the relevant portion of form BDC-2A. In
case of part delivery of rights FCD, PCD -convertible part (which are traded
on NSE), the delivery must necessarily be in market lots. In case the IM does
not deliver the rights shares, the equivalent monetary value less rights
issue amount shall be debited to the IM and credited to the account of RM by
the Clearing Corporation. |
|
5
|
Rights - NCD PCD-Non Convertible Part |
No Valuation |
|
6
|
Others Rights - FCD,PCD-convertible part (if not traded on NSE) |
Shall be handled directly between members as is
the current practice |
IM :
Introducing Member/First Introducing Member
RM :
Receiving Member/Last Introducing Member
Computation of equivalent value: The equivalent
value of scrip will be the closing price of Day 19. The date of intimation of
objection is taken as Day 1. In case there is no trading on Day 19, then the
closing price of the day preceding Day 19 on which trading took place will be
taken as equivalent value. However, if the rectification of objection is beyond
the stipulated period of 21 days (owing to the scrip being in no delivery), the
relevant valuation price shall be the closing price of the date 2 days prior to
the date of rectification.
Annexure 18
(On the Letter Head)
UNDERTAKING
To,
National Securities Clearing Corporation Limited
Exchange
Plaza, C-1 Block G
Bandra
Kurla Complex
Bandra (E)
Dear Sir/s,
Pursuant to the requirement specified in COSI meeting dated February 21, 1998 and subsequent broadcast on February 26, 1998, we are required to submit delivery details statement and / or delivery slip alongwith the company objection memo while lodging the document against the introducing member in support of the proof of having received such shares through the process of Clearing House, from delivering member at NSE. While we have been furnishing such supporting documents alongwith the company objection being lodged by us, the relevant delivery detail statement and / or delivery slip are not available at our end in respect of company objection detailed here below. We, therefore, request the Clearing Corporation to accept the objection without delivery detail statement and / or delivery slip in respect of the above shares.
We confirm that the shares, the details of which are given in Annexure 18.1 attached, have been received by us from the Clearing House.
We undertake that in case where it is proved that the aforesaid shares were not received by us through the process of Clearing House of National Stock Exchange of India / Clearing Corporation from the introducing delivering member or delivering member, we agree that such act shall be subject to same amount of penalty as provided under item no.8.5 of Circular No: NSCC/CM/C&S/064 dated March 18, 1998 besides any other disciplinary action deemed fit to be initiated against us by the Exchange / Clearing Corporation .
Thanking you,
Yours faithfully,
(Members Name & Official Seal)
Note: The above undertaking is to be given only incase of fake/forged/stolen shares under objection and where the introducing member at NSE is other than a defaulter, surrendering member, surrendered member, suspended member or a disabled member.
Annexure 18.1
Objection
Inward No. :
Details
when the shares were originally received
Shares
received from
Member
Name : ___________________________________
Member
Code : ____________
Settl. Type Settl. No. Del. No. Certificate No. Distinctive Nos.From – To
Annexure - 22.1
Sr No Reason Reason Code To be Rectified by IM
/ DM
1 Wrong
Scrip Delivered. DM
02 DM
2 Overwriting in Folio No in Certificate. IM 01 IM
3 Sellers
name and apparent difference in signature on TD. IM 02 IM
4 Partly
paid shares delivered instead of fully paid. DM 03 DM
5 Sellers
Signature Missing. IM
03 IM
6 Witness
signature missing. IM
04 IM
7 Companies
name wrongly written. IM 05 IM
8 New
share Dividend not claimed on Non Pari Passu shares. DM 01 DM
9 Call
money endorsement required. IM 06 IM
10 P.A.
No required. IM 07 IM
11 ROC
date not clear IM
08 IM
Annexure-23.1
Export utility for generation of delivery
details
Procedure
Members are required to generate the delivery
details by using the utility for export of delivery details in the clearing
software.
However members not using the export utility
provided in the Clearing Software are requested to take note of the file
structures and naming conventions provided below. Members are also requested to
furnish the following information on floppies in the format mentioned below.
File format
The file should be in the comma delimited
format i.e. the fields in the header and detail records (discussed in items 2
and 3 resp.) should be separated by a comma (,) and should not have
· leading zeros (in the case of numbers)
· leading and following spaces (in the case of
characters and numbers)
For example:
The header record would read as:
01,09852,N,1997048,N,01,1025,09852N1997048N01,N0985201.048
The detail record would read as:
21,N,1997048,N,1234,ATLASCOPCO,EQ,10,A80482,1100000000000001,1100000000000010
1. File Naming Convention
The file will be named as per the format
XYYYYYNN.999
where X : Settlement Type
YYYYY : Member Code
NN :
Batch No.
999 :
Settlement Number
Generation of batch number
The batch number as described above should be
generated as follows.
For a unique combination of Settlement Type,
Settlement No., and Delivery Type a separate file should be generated. For a
given Settlement Type and Settlement No., each file generated should have a
unique batch no. This batch no. should increment by one each time a new file is
generated.
A maximum number of 10,000 records including
the header and the delivery detail records can be entered in one floppy.
(Detail record discussed in item 3).
Consider the following examples:
Example 1:
Settlement type N
Member code 09852
Batch no. 01
Settlement no. (1997048) 048
File should be named as N0985201.048
Example 2:
Settlement type N
Member code 09852
Batch no. 02
Settlement no. (1997048) 048
File should be named as N0985202.048
2. Header Record
Each file will contain the header record in the
following format:
Field Name
Record Type
Trading Member Code
Settlement Type
Settlement No.
Delivery Type
Batch Number
Total number of Records
File Name
DOS File Name
The Record type should be 01 for header record.
Consider the following example:
Record Type 01
Trading Member Code 09852
Settlement Type N
Settlement No. 1997048
Delivery Type N
Batch Number 01
Total number of Records 1025
File Name 09852N1997048N01
DOS File Name N0985201.048
The above header record should appear as
follows:
01,09852,N,1997048,N,01,1025,09852N1997048N01,N0985201.048
File Name in the header record
The file name in the header record should be as
follows:
Member Code
Settlement Type
Settlement No.
Delivery Type
Batch Number
Consider the above example:
Corresponding to file N0985201.048, the file
name in the header record should appear as 09852N1997048N01.
The DOS File Name in the header record:
The DOS file name in the header record should
be as follows:
Settlement Type
Member Code
Batch No.
Settlement Number
Consider the example cited in item 1:
Corresponding to file N0985201.048, the DOS
file name in the header record should appear as N0985201.048.
3. Detail record
Please note that the format as defined earlier
in NSCC/CH/3477 contained a field 'Number of certificates' which has been
deleted in the following revised format.
Field Name Length
Record type Char
(2)
Settlement Type Char (1)
Settlement Number Char (7)
Delivery Type Char
(1)
Delivery Number
Char (6)
Symbol Char
(10)
Series Char
(2)
Delivered Qty Number
(16)
Certificate Number Char (20)
DNR From No. Char
(16)
DNR to No. Char
(16)
The Record type for the detail records should
be 21.
Consider the following example:
Record type 21
Settlement Type N
Settlement Number 1997048
Delivery Type N
Delivery Number 1234
Symbol ATLASCOPCO
Series EQ
Delivered Qty 10
Certificate Number A80482
DNR From 1100000000000001
DNR From 1100000000000010
The above detail record should appear as
follows:
21,N,1997048,N,1234,ATLASCOPCO,EQ,10,A80482,1100000000000001,1100000000000010
There should be a separate detail record for
· Each certificate number
· discontinuous distinctive number ranges
Annexure-23.2
|
Reason |
Charges to be levied |
|
Non-submision of floppy |
Rs. 500 per instance and Rs.2000 if non-
submission more than two consecutive instances |
|
Part delivery details provided/ delivery details not provided |
Rs.200 per settlement |
|
DNR/ certificate details on DDS/ floppy not matching with the physical shares and being reported as bad by the receiving members |
Rs.200 per settlement |
|
Other minor technical mistakes |
Rs. 200 subject to a maximum of Rs. 500 for
more than one mistake |
The members would be given an opportunity to
rectify the data till
If the distinctive number ranges (DNRs)
provided by the Delivering Member do not tally with the physical shares
delivered by them, and subsequently, it is confirmed that the shares actually
delivered are fake/ forged/ stolen, a fine of Rs. 5000/- or 10% of the value of
shares delivered, whichever is higher, shall be levied on such members.
Annexure-24.1
FORM NO: NSEF 01
To Date:
National
Securities Clearing Corporation Ltd.
Mumbai
Dear
Sirs,
We
hereby state that the Settlement Obligations for securities to deliver /
receive and funds to pay / receive as specified in our "SETTLEMENT OBLIGATION STATEMENT OF CM CLEARING MEMBER" (Form
No: NSEF - 01) for the Settlement Type:__________ No:____ as enclosed herewith
is confirmed order from us for the same.
CM Clearing Member Name Signature
CM Clearing Member Code Stamp
FORM NO: NSEF-01
To Date:
National
Securities Clearing Corporation Ltd.
Mumbai
SETTLEMENT OBLIGATION STATEMENT OF
CM CLEARING MEMBER
Clearing Member: 'Code' 'Name'
Trade
Date: 'Date' Report Run Date: 'Date'
Settlement
Type: 'Code' Settlement No: 'No'
Trading
Period: 'From' 'To'
Pay-in
Date: 'Date' Pay-out Date: 'Date'
Sr. Security Total
Buys Total Sells Cumulative Net
No. Code Symbol Series Quantity Value Quantity Value Qty
to
Total
l
Funds
to Pay(-)/Receive(+) Rs.____________________
I/We
hereby state that the above mentioned Settlement obligation for securities to
deliver/receive and funds to pay/receive is a confirmed order from us for the
same.
CM
Clearing Member Name : Member
Signature :
CM
Clearing Member Code: Member
Stamp:
Annexure-24.2
FORM NO: NSEF 01A
To Date:
National
Securities Clearing Corporation Ltd.,
Mumbai
Dear
Sirs,
We hereby state that the Settlement Obligations
for securities to deliver / receive and funds to pay/receive as specified in
our "SETTLEMENT OBLIGATION
STATEMENT OF CM CLEARING MEMBER - CUSTODIANWISE" (Form No: NSEF - 01A)
for the Settlement Type:__________ No:____ as enclosed herewith is confirmed
order from us for the same.
CM Clearing Member Name Signature
CM Clearing Member Code Stamp
FORM NO:NSEF-01A
To Date:
National
Securities Clearing Corporation Ltd.
Mumbai
SETTLEMENT OBLIGATION STATEMENT OF CM
CLEARING MEMBER - CUSTODIAN-WISE
Clearing
Member : 'Code' 'Name'
Trade
Date: 'Date' Report Run Date: 'Date'
Settlement
Type: 'Code' Settlement No: 'No'
Trading
Period : 'From'
'To'
Pay-in
Date: 'Date' Pay-out Date: 'Date'
Sr. Security Total
Buys Total Sells Cumulative Net
No Code Symbol Series Quantity Value Quantity Value Qty to
Total
Funds to Pay(-)/Receive(+)
Rs.____________________
I/We hereby state that the above
mentioned Settlement obligation for securities to deliver/receive and funds to
pay/receive is a confirmed order from us for the same.
CM
Clearing Member Name : Member
Signature :
CM
Clearing Member Code: Member
Stamp:
Annexure-24.3
FORM NO: NSEF 02
To Date:
National
Securities Clearing Corporation Ltd.,
Mumbai
Dear
Sirs,
We hereby state that the Settlement Obligations
for securities to deliver / receive and funds to pay / receive as specified in
our "SETTLEMENT OBLIGATION
STATEMENT OF CUSTODIAN CLEARING MEMBER" (Form No: NSEF - 02) for the
Settlement Type:__________ No:____ as enclosed herewith is confirmed order from
us for the same.
Custodian Clearing Member Name Signature
Custodian Clearing Member Code Stamp
FORM NO:NSEF-02
To Date:
National
Securities Clearing Corporation Ltd.
Mumbai
SETTLEMENT OBLIGATION STATEMENT OF
CUSTODIAN CLEARING MEMBER
Clearing Member : 'Code' 'Name'
Trade Date: 'Date' Report
Run Date: 'Date'
Settlement Type: 'Code' Settlement
No: 'No'
Trading Period : 'From'
'To'
Pay-in Date: 'Date' Pay-out
Date: 'Date'
Sr. Security Total Buys
Total Sells Cumulative
Net
No. Code Symbol Series Quantity
Value Quantity Value Qty to
Total
Funds to Pay(-)/Receive(+)
Rs.____________________
I/We hereby state that the above
mentioned Settlement obligation for securities to deliver/receive and funds to
pay/receive is a confirmed order from us for the same.
Custodian Clearing Member Name
: Member
Signature :
Custodian Clearing Member Code: Member
Stamp:
Annexure-24.4
FORM NO: NSEF 03
To
National
Securities Clearing Corporation Ltd.,
Mumbai
Dear
Sirs,
We
hereby state that we will deliver documents (Form No:NSEF-03) comprising of
Delivery No: From ___________ To ___________ in the clearing for the Settlement
Type:__________ No:____
Delivering Member Name Signature
Delivering Member Code Stamp
FORM NO:NSEF-03
Page
No.
To Report
Name :
National
Securities Clearing Corporation Ltd. Report
Date:
Mumbai
I/We
hereby agree to and will deliver the following securities in the clearing :
FINAL
DELIVERY STATEMENT
Delivering Entity
'Code' 'Name'
Delivery
Type : Settlement Type: 'Code' Settlement
No. : 'No.'
Trading
Period 'From' 'To'
Pay-in
Date 'Date' Pay-out Date 'Date'
Delivery
Nos. 'From' 'To' Total Deliveries 'No.'
Delivering
Centre : Receiving
Centre :
Sr.
No. Delivery No. Security
Symbol Series Qty to Deliver Receiving
Entity
Name Receipt No.
Delivering Member Name : Member
Signature :
Delivering
Member Code: Member
Stamp:
Annexure-24.5
FORM NO: NSEF 04
To Date:
National
Securities Clearing Corporation Ltd.,
Mumbai
Dear
Sirs,
We
hereby state that we will receive documents (Form No:NSEF-04) comprising of
Receipt No: From __________ To _____________ in the clearing for the Settlement
Type _______ No: ______.
Receiving Member Name Signature
Receiving Member Code Stamp
FORM NO:NSEF-04
Page
No.
To Report
Name :
National
Securities Clearing Corporation Ltd. Report
Date:
Mumbai
I/We hereby agree to and will
receive the following securities in the clearing :
FINAL RECEIPT STATEMENT
Receiving
Entity 'Code' 'Name'
Delivery
Type : Settlement Type: 'Code' Settlement
No. : 'No.'
Trading
Period 'From' 'To'
Pay-in
Date 'Date' Pay-out
Date 'Date'
Receipt
Nos. 'From' 'To' Total
Deliveries 'No.'
Receiving
Centre : Delivering
Centre :
Sr.
No. Receipt No.
Security
Symbol Series Qty to Receive Delivering
Entity Name Delivery
No.
Receiving
Member Name : Member Signature :
Receiving
Member Code: Member
Stamp:
Annexure-24.6
FORM NO:NSEF-05
DELIVERY SLIP
Settlement Type 'Code' Settlement
No. 'No.'
Delivering Centre Receiving Centre
Delivery No. Pay-in
Date Pay-out Date Receipt No.
'No.' 'Date' 'Date' 'No.'
Delivering Entity Security Receiving Entity
'Code' 'Code' 'Code'
'Name' 'Name' 'Name'
Qty to Deliver
Qty
Delivered
Delivering Entity Stamp Qty Short Clearing
House Stamp
No. of
Certificates
Delivering Entity Signature Clearing
House Signature
Annexure-24.7
FORM NO:NSEF-06
Page No.
To Report
Name :
National
Securities Clearing Corporation Ltd. Report
Date:
Mumbai
DELIVERY DETAILS STATEMENT
Delivering
Entity : 'Code' 'Name'
Settlement
Type : 'Code' Settlement No. 'No'
Trading
Period : 'From' 'To'
Pay-in
Date : 'Date' Pay-out
Date 'Date'
Delivering
Centre: Receiving
Centre :
Delivery
Security Symbol Series Qty to Deliver Receiving Entity Receipt No. No.
of
No.
'Code'
Certificates
Certificate
DNR's No. of
No.(s) From To Shares
Total
Delivering
Member Name : Member Signature :
Delivering
Member Code: Member
Stamp:
Annexure-24.8
FORM NO: NSEF 6B
To Date
:
The
Clearing house,
NSCCL,
Mumbai.
We
hereby enclose the bad deliveries received by us as per the details mentioned
below :
SETTLEMENT
NO :
TYPE : DELIVERING CENTRE CODE: DELIVERY NO :
DELIVERING
MEMBER NAME : DELIVERING
MEMBER CODE :
____________________________
SCRIP NO OF SHARES
CERTIFICATE NOS DIST NOS FROM
TO NO OF CERTS BAD CODE
TOTAL
:
REASON
:
1._________________________________________________________
2._________________________________________________________
3._________________________________________________________
TOTAL QTY RECTIFIED :
SHARES
REPLACED TRANSFER DEED REPLACED
Certificate
Nos Distinctive Nos From To Certificate Nos Distinctive Nos From To
STAMP
& SIGN OF THE REC MEMBER RECEIVING MEMBER CODE
Annexure-24.9
Form NO. NSEF 6B-1
(BAD DELIVERY MEMO)
Date
: NSE Inward No. :
Member's
Name: Code
:
Security
Name ( in full) Symbol Series Delivery
No Settl. Type Settl.
No.
Certificate
Nos. Distinctive
Nos.
From To No. of Shares
Good
/ Bad delivery Guideline No : ____________________________________________
Reason
for Bad Delivery :
________________________________________________________________________________________________________________________________________________________________________________________________________________
Documents
Good for Delivery Documents Bad for Delivery
For National Securities Clearing
Corporation Ltd.
(
Authorised Signatory)
Annexure-24.10
FORM NO : NSEF 6B-2
(UNRECTIFIED BAD DELIVERIES)
To
National
Securities ClearingCorporation
C-1 Block G, Bandra Kurla Complex
Bandra
(E)
Mumbai
- 400051
I/We
Have Failed To Rectify/Replace The Following Bad Deliveries On The Due
Date. I/We Therefore Instruct You To Auction/Square Off
My/Our Account As Provided In Exchange Bye-Laws And Regulations
Sr
No Delivery Number
1
2
3
4
5
6
7
8
Stamp
And Sign
Delivering Member Code :
Of
Delivering Member
Annexure-24.11
Form No. : BDC - 1A
(To
be filled in triplicate for submitting Local Exchange Company Objections)
The
BDC/Clearing House
BDC Inward No:_______________
National
Securities Clearing Corporation Ltd.
Date
of Introducing the shares on the First Introducing Exchange : ________________
We
enclose the company objections received
by us as per details given below :
Introducing Member/Custodian SEBI REGN. NO. ( Introducing
Member/Custodian )
______________________________________ Clearing No.
_________________
Security Name ( in full ) SECURITY CODE (SYMBOL) Series Eq./Deb Face Value Mkt. Lot
Delivering
Member Name : _______________
Settl.
Type Settl. &
TOTAL :
--------------------------------------------------------------------------------------------------------------------------------
CLAIM FOR
CORPORATE BENEFITS
BDC
INWARD NO. _________________ Security Name of Benefits: _______________________
SECURITY
CODE (SYMBOL) : ________________
BC/RD
Date Type of
Rate / Ratio
Issue price No. of shares Dividned Amt Corporate Benefits. of
Rights due as benefits
securities
CHEQUE
(IF ANY) SHOULD BE ISSUED IN FAVOUR OF :________________________________
STAMP
& SIGN OF BDC STAMP AND SIGN OF RECEIVING
OF
STOCK EXCHANGE
MEMBER/CUSTODIAN
SEBI REGN. NO.( Receiving Member
/Custodian)
Clearing
No. _________________
Additional
Details :
Buyer
Custodian Name : ______________________________
Buyer
Custodian Code. : _________________
Seller
Custodian Name : ______________________________
Seller
Custodian Code. : _________________
Obj
Code Reason
1. Transferor Signature not
matching with the records of the company.
Attestation required.
2. Fake/Forged/Stolen shares.
3. Alterations/Corrections on
the Transfer Deed needs to be authenticated by the Tranferor
4. Signature of the transferor
not properly witnessed.
5. Stop Transfer instructions
received by the Company.
6. Power of Attorney of
authorised signatory not registered with the Company. Certified
true copy of Board Resolution/Power of Attorney required.
7. Memorandum & Articles
of association of the Company required.
8. Others (Specify the reason
on the Form BDC - 1A)
Annexure-24.12
Form No. : BDC - 1B
(To be filled in quadruplate for
submitting Inter-Exchange Company Objections)
The
BDC (First Introducing Exchange) BDC
Inward No:_______________
___________________________________
Stock
Exchange Code :_______________
Date
of Introducing the shares on the First Introducing Exchange : ________________
We
enclose the company objections received
by us as per details given below :
Introducing
Member of First Exchange/Custodian SEBI REGN. NO. ( First Introducing
Member/Custodian)
______________________________________ Clearing No.
_________________
Security Name ( in full ) ISIN CODE Equity/Deb Face Value Mkt. Lot
Close
Out Price ( See Note I ) :___________________
No.
of Certs No. of Shares Cert Nos. Distinctive
Nos. From To Obj
Reason (Code)
Stamp
Amt. Close-out Amt.
TOTAL :
--------------------------------------------------------------------------------------------------------------------------------
CLAIM FOR CORPORATE
BENEFITS
BDC
INWARD NO. _________________ Security Name of Benefits: _______________________
ISIN
CODE : ________________
BC/RD
Date Type of Corporate Benefits. Rate /
Ratio Issue price of Rights securities
No.
of shares due as benefits
DividendAmount
Demand
Draft (IF ANY) SHOULD BE ISSUED IN FAVOUR OF:____________________________
PAYABLE
AT ______________________________________
STAMP
& SIGN OF BDC
STAMP AND SIGN OF LAST INTRODUCING MEMBER/CUSTODIAN
OF
LAST EXCHANGE
SEBI REGN. NO.( Last Introducing Member /Custodian)
Stock
Exchange Code :_______________ Clearing No.
_________________
Note
I : Indicate close out price as per close out procedure
Additional
Details :
Buyer
Custodian Name : ______________________________
Buyer
Custodian Code. : _________________
Seller
Custodian Name : ______________________________
Seller
Custodian Code. : _________________
Obj
Codes Reason
1. Transferor Signature not matching with
the records of the company.
2. Fake/Forged/Stolen shares.
3. Alterations/Corrections on the Transfer
Deed needs to be authenticated by the
Tranferor/Transferee.
4. Signature of the transferor not
properly witnessed.
5. Stop Transfer instructions received by
the Company.
6. Power of Attorney of authorised
signatory not registered with the Company. Certified true copy of Board Resolution/Power of Attorney
required.
7. Memorandum & Articles of
Association of the Company required.
8. Others (Specify the reason on the Form
BDC - 1B)
Annexure-24.13
Form No. : BDC - 2A
Part
- A
(
To be filled in triplicate by the
Introducing Member/Custodian for submitting rectified Company Objections)
To,
The
BDC/Clearing House BDC Inward No. ______________
National
Securities Clearing Corporation Ltd. (quoted by Stock Exchange on form
BDC- 1A)
Receiving
Member/Custodian SEBI REGN. NO.(Receiving
Member/Custodian)
_______________________________ Clearing
No.______________
We
enclose herewith the following shares duly rectified/replaced including
corporate benefits (if any) as per the claim arising on company objections :
Security Name ( in full ) SECURITY CODE (SYMBOL) Series
Eq./Deb Face Value
Mkt.
Lot
No.
of TDs No. of Certs No. of Shares Cert Nos. Distinctive Nos.
From -To Cheque No.
Cheque
Amount( Close- Out Amount)
Security Name of Benefits
:_______________CORPORATE BENEFITS SUBMITTED (To be filled by the Introducing Member/Custodian)
Type
of Corp. Benefit No. of Shares enclosed
as benefits Cheque No. Equivalent Price
(Closing
Amt) Cheque Amount Distinctive Nos. Of shares
enclosed From - To
For
Rights (Equity, FCD's, PCD's) submitted by us as Corporate Benefits for the
above BDC Inward No., kindly issue us a Cheque for Rs. ___________________________ in favour of : _______________________________________________________________
---------------------------------------------------------------------------------------------------------------
Part
- B
(Details
to be filled in by the Receiving Member/Custodian )
BDC
Inward No. : ____________________
We
enclose herewith a Cheque No. ____________ dated __________for Rs.
_____________________ drawn on
____________________________________________(name of bank) in favour of _____________________________(the Introducing Member) being the amount paid for Rights shares.
Kindly
acknowledge receipt.
From
: The BDC Stamp & Sign of Receiving Member/Custodian :
(Stamp
& Sign of Stock Exchange) SEBI REGN. NO.(
Receiving Member/Custodian)
Stock
Exchange Code :_______________ Clearing No.
_________________
Annexure-24.14
Form No. : BDC - 2B
Part - A
(
To be filled in quadruplate by the First Introducing Member/Custodian for
submitting rectified Company Objections)
To,
The
BDC(Last Exchange) BDC
Inward No. ______________
_________________________________ (quoted by Last
Exchange on form BDC- 1B)
Last
Introducing Member/Custodian SEBI
REGN. NO.(Last Introducing
Member/Custodian)
_______________________________ Clearing
No.______________
We
enclose herewith the following shares duly rectified/replaced including
Corporate Benefits (if any) as per the claim arising on company objections :
Security Name ( in full ) SECURITY CODE (SYMBOL) Series
Eq./Deb Face Value
Mkt.
Lot
No.
of Certs No. of Shares
Certificate Nos. Distinctive
Nos. From - To Cheque No. Cheque Amount (Close-
Out Amount)
Security
Name of Benefits: ________________ CORPORATE
BENEFITS SUBMITTED (To be filled by the
First Introducing Member/Custodian)
Type
of Corp. Benefit No. of Shares enclosed
as benefits Cheque No. Equivalent
Price (Closing Amt) Cheque Amount Distinctive Nos. Of shares
enclosed
From To
For
Rights (Equity, FCD's, PCD's) submitted by us as Corporate Benefits for the
above BDC Inward No., kindly issue us a Demand Draft for Rs. __________________________ in favour of : _________________________________ payable
at ______________________
---------------------------------------------------------------------------------------------------------------
Part
- B
(Details
to be filled in by the Last Introducing Member/Custodian )
BDC
Inward No. : ____________________
We
enclose herewith a Demand Draft No. ____________ dated __________for Rs.
_____________________ drawn on __________________________________________________(name
of bank) in favour of ______________________________________(the
First Introducing Member/ Custodian)
being the amount paid for Rights shares.
Kindly
acknowledge receipt.
From
: The BDC Stamp
& Sign of Last Introducing
Member/Custodian :
(Stamp
& Sign of Last Exchange) SEBI
REGN. NO.( Last Introducing Member/Custodian)
Stock
Exchange Code :_______________
Clearing No.
_________________
Annexure-24.15
Form No. : BDC - 3A
(To be
filled in triplicate by the Receiving Member/Custodian in case of Invalid Claim
of Company Objections)
To,
The
BDC /Clearing House
National
Securities Clearing Corporation Ltd. DATE:
Stock
Exchange Code : ____________
Receiving
Member/Custodian SEBI REGN. NO. (Receiving
Member/Custodian )
___________________________ Clearing No. : _____________
Part - A
Re: INCORRECT COMPANY OBJECTION
BDC
Inward No. : ____________________
(quoted
by Stock Exchange on form BDC- 1A)
We
are in receipt of the above company objection along with ________ Equity
share(s)/Debenture(s) of
___________________________________________Ltd. and relative transfer
deed(s), which are being returned for reason(s) marked below :
1. We have not introduced these securities.*
2. The delivering member stamp affixed on the
reverse of the TD is fake. *
3.
Objection reason not valid.
4.
Objection due to transferee error.
5.
Company memo not proper.
6.
Copy of Court order /FIR required.
7.Others(specify):____________________________________________________
___________________________________________________________________
_________________________________________________________________________
--------------------------------------------------------------------------------------------------------------------------------------
Part
- B
Re
: Invalid Claim for Corporate Benefits
BDC
INWARD NO. _________________ Security Name of Benefits: _______________________
BC/RD
Date Type of Corporate Benefits. Rate / Ratio DividendAmount Reason
Stamp
& Sign of Intro.
Member/Custodian Stamp &
Sign of BDC of Stock Exchange
____________________________
_________________________________
Clearing
No. _________________ Stock
Exchange Code :_______________
* Note: In these cases, the members should
submit an undertaking on form 6I.
Annexure-24.16
Form No. : BDC - 3B
(To
be filled in triplicate by the Receiving Member/Custodian in case of Invalid
Claim of Company Objections)
To,
The
BDC (Last Exchange)
__________________________ DATE:
Stock
Exchange Code : _______________
Last
Introducing Member/Custodian SEBI REGN. NO. (Last Introducing
Member/Custodian)
___________________________ Clearing No. ______________
Part - A
Re: INCORRECT COMPANY OBJECTION
BDC
Inward No. : ____________________
(quoted
by Last Exchange on form BDC- 1B)
We
are in receipt of the above company objection along with ________ Equity
share(s)/Debenture (s) of
___________________________________________Ltd. and relative transfer
deed(s), which are being returned for reason(s) marked below :
1. We have not introduced these securities.
2. The delivering member stamp affixed on the
reverse of the TD is fake. *
3.
Objection reason not valid.
4.
Objection due to transferee error.
5.
Company memo not proper.
6.
Copy of Court order /FIR required.
7.Others(specify):_____________________________________________________
_____________________________________________________________________
_____________________________________________________________________
------------------------------------------------------------------------------------------------------
Part
- B
Re
: Invalid Claim of Corporate Benefits
BDC
INWARD NO. _________________ Security Name of Benefits: _______________________
BC/RD
Date Type of Corporate Benefits. Rate / Ratio DividendAmount Reason
Stamp
& Signature of First Intro. Member Stamp
& Sign of BDC of First /Custodian Introducing
Exchange
____________________________
___________________________
Clearing
No. _________________ Stock
Exchange Code :_______________
* Note:
In these cases, the members should submit an undertaking on form 6I.
Annexure-24.17
Form No. : BDC - 4A
(
To be filled in triplicate by the
Receiving Member/Custodian of the Local Exchange for reporting Bad Delivery for
the rectified Company Objections shares)
To,
The
BDC/Clearing House
BDC Inward No. ______________
National
Securities Clearing Corporation Ltd. (quoted by Stock Exchange on form BDC- 1A)
Stock
Exchange Code : ________
Introducing
Member SEBI REGN. NO.(Introducing
Member)
_______________________________ Clearing No.
______________
We
enclose herewith the following rectified/replaced Company Objection shares
which are Bad Delivery , the details of which are as mentioned below:
Security
Name (in full) ISIN Code (Symbol) Equity/Deb Face
Value Mkt Lot.
No.
of TDs No. of Certs No. of Shares Cert Nos. Distinctive Nos.From-To Reason for Bad Delivery
Total :
Kindly
acknowledge receipt and arrange to issue a cheque for the close-out amount in
favour of : ____________________________________________________________.
Authorised
by
The BDC Stamp & Sign of Receiving Member/Custodian:
(Stamp
& Sign of Stock Exchange) SEBI REGN. NO.( Receiving
Member/Custodian)
Stock
Exchange Code :_______________ Clearing
No. _________________
Note
: Members must submit a photocopy of
Form BDC - 1A and BDC - 2A alongwith a copy of the Company Objection Memo while
submitting shares for Bad Delivery.
Annexure-24.18
Form No. : BDC - 4B
( To be filled in quadruplate by the Introducing
Member/Custodian of the Last Exchange for reporting Bad Delivery for the
rectified Company Objections shares)
To,
The
BDC (First Introducing Exchange) BDC Inward No.
______________
_______________________________ (quoted by Last Exchange on form BDC- 1B)
Stock
Exchange Code : __________
First
Introducing Member of First Exchange
SEBI REGN. NO.(First Introducing Member)
_______________________________ Clearing No.
_____________
We
enclose herewith the following rectified/replaced Company Objection shares
which are Bad Delivery , the details of which are as mentioned below:
Security
Name (in full) ISIN Code Equity/Deb Face Value Mkt Lot.
No.
of TDs No. of Certs No. of Shares
Cert Nos. Distinctive Nos.From -To Reason for Bad Delivery
Total
:
Kindly
acknowledge receipt and arrange to issue a Demand Draft for the close-out
amount in favour of
_________________________________________ payable at
______________________.
Authorised
by:
The BDC Stamp & Sign of
Introducing Member/Custodian of Last Exchange:
(Stamp
& Sign of Last Introducing Exchange) SEBI REGN. NO.( Introducing
Member/Custodian of Last Exchange)
Stock
Exchange Code :_______________
Clearing No. _________________
Note
: Members must submit a photocopy of
Form BDC - 1B and BDC - 2B alongwith a copy of the Company Objection Memo while
submitting shares for Bad Delivery.
Annexure-24.19
FORM NO: NSEF 06E
Date:
To
The
Clearing House
National
Securities Clearing Corporation Ltd.
Re:
NON-RECTIFICATION/REPLACEMENT OF COMPANY OBJECTIONS
I/We have failed to rectify/replace the
following Company Objection cases on the due date.
I/We therefore instruct you to auction/square
off my/our account for the same as provided in
the Stock Exchange Bye-laws and Regulation.
Settlement
Type ___________ No :_____ Rectification date:
NSCC
Objection No. Security Name Security Series Face Value Unrectified
Quantity
Introducing
Member Name Signature
Introducing
Member Code Stamp
Annexure-24.20
FORM NO: NSEF 06F
(Request
Cases)
DATE
: INWARD
No.
REC
MEM CODE :
REC
MEM NAME :
SETT. TYPE & No.: DEL. No.
SCRIP
NAME : PREVIOUS B.C. :
SCRIP
SYMBOL : SERIES
:
CERT
NO DISTINCTIVE NOS FROM - TO QTY NO OF CERT REASON
CODE
TOTAL
REASON
:
TOTAL
QTY RECTIFIED :
SHARES
REPLACED TRANSFER
DEED REPLACED
Certificate
Nos Distinctive Nos From -To Certificate
Nos
Distinctive Nos From - To
Affix Rs. 100/- Coupon here
STAMP
OF RECEIVING MEMBER
Annexure-24.21
FORM NO: NSEF 6I
(To
be filled in triplicate by the introducing member in case of fake/forged member
stamp or in case the shares are not introduced by the member)
The
BDC/Clearing House
National
Securities Clearing Corporation Ltd.
Mumbai. Date
:
Re
: Fake/Forged SEBI registration rubber stamp
Shares not introduced by us on the
Exchange
This
is to inform you that :
Inward
No. Security Symbol
Certificate
No. Distinctive Nos.
From To No. of shares
Total :
In
the event of the above information being found incorrect, we authorise you to
close out the objection immediately without the mandatory period of 21 days for
rectification without intimation to us.
Stamp
& Signature of the introducing member
Note
: Please tick whichever is applicable.
Annexure-24.22
FORM NO : NSEF 6J
Undertaking
in cases of Jumbo transfer deed submitted in Company Objection
The
Introducing Member Date
:
Re
: Jumbo Transfer deeds lodged to the company
Kindly
issue fresh transfer deed(s) in market lots in respect of shares of ___________________________ (name of
company), bearing the below mentioned distinctive no(s). while
rectifying/replacing the shares reported under objection, in lieu of the
original transfer deed(s) which has/have been lost/destroyed.
Certificate
No. Distinctive Nos. From -
To No. of shares
We
will indemnify the transferor against all losses, damages, costs, charges and
expenses they may sustain in the event of the said original transfer deed(s)
being misused at any point of time or otherwise in consequence of the
transferor issuing us fresh transfer deed(s) to us, as aforesaid.
Stamp
& Signature of the receiving member
Annexure-24.23
FORM NO: NSEF 7
NOTICE
OF NON-DELIVERY
To
The
Clearing House
National
Securities Clearing Corporation Ltd.
I/we
have failed to deliver this day the following securities as per the Final
delivery Statement, Delivery No: From ______ To _______ Dated _____________ in
Settlement No: ___________. I/We therefore instruct you to debit my/our account
with the value thereof as provided in the
Bye-laws and Regulations of National Securities Clearing Corporation Ltd.
Name
of the security
Quantity
Valuation
Price
Total
value of securities
Delivering
Member Name Signature
Delivering
Member Code Stamp
cc
: To National Securities Clearing
Corporation Ltd.
Annexure-24.24
FORM NO: NSEF 7A
Settlement
of TT Market Deals (In Regular Market)
Format
for reporting by Custodian Clearing Member
Date:
TM
Clearing Member Code: TM
Clearing Member Name:
Custodian
Clearing Member Code: Custodian
Clearing Member Name:
Settlement
No. Trade Date Settle-ment Date Buy/
Sell Counter-party Security Name Certificate
Nos. Distinctive Nos. DD/Cheque /pay order Nos. Price Qty Amt.
---------------_____________________________________________
Stamp
and Signature of the Custodian Clearing Member
Annexure-24.25
FORM NO: NSEF 7A1
Settlement
of TT Market Deals (In Depository Market)
Format
for reporting by Custodian Clearing Member
Date:
TM
Clearing Member Code: TM
Clearing Member Name:
Custodian
Clearing Member Code: Custodian
Clearing Member Name:
Settle-ment
No. Trade Date Settle-ment Date Buy/ Sell Counter-party Security Name DD/Cheque /pay order Nos. Price Qty Amt.
_____________________________________________
Stamp
and Signature of the Custodian Clearing Member
Annexure-24.26
FORM NO: NSEF 7B
Settlement
of TT Market Deals (In Regular Market)
Format
for reporting by TM Clearing Member
Date
TM
Clearing Member Code: TM
Clearing Member Name:
Custodian
Clearing Member Code: Custodian
Clearing Member Name:
Settle-ment
No. Trade Date Settle-ment Date Buy/ Sell
Counter-party Security
Name Certificate Nos. Distinctive Nos. DD/Cheque/pay order Nos. Price Qty Amt.
---------------________________________________________
Stamp
and Signature of the TM Clearing Member
Annexure-24.27
FORM NO: NSEF 7B1
Settlement
of TT Market Deals ( In Depository Market)
Format
for reporting by TM Clearing Member
Date
TM
Clearing Member Code: TM
Clearing Member Name:
Custodian
Clearing Member Code: Custodian
Clearing Member Name:
Settle-ment
No. Trade Date Settle-ment Date Buy/ Sell
Counter-party Security Name DD/Cheque/pay
order Nos. Price Qty Amt.
---------------________________________________________
Stamp
and Signature of the TM Clearing Member
Annexure-24.28
FORM NO.: NSEF-08
Application
for issue of Identity Card to
Authorised
Representative for attending Clearing House
(
separate form to be used for each representative )
I. Application for : Tick and fill appropriate box(es)
New
application Replacement for
damaged ID card Replacement for
lost /stolen ID card
Please mention Please
mention
ID
card no. ……………….
Date
of issue …………….. ID
card no.……………….
Date
of issue …………….
(1)
If application is for replacement of damaged ID card, please attach the
previous ID card.
(2)
If application is for replacement of lost/stolen ID card please attach
indemnity bond as per
- I, and DD/Cheque drawn in favour of NSCCL,
payable at Bombay for an amount as notified by NSCCL from time to time.
II.
Particulars of the Clearing Member - applicant
(a) Name and Code No.of the
Clearing Member's firm ………………………………………………
(b) Member's SEBI registration number ………………………………………………
(c) Address of
the Clearing Member
………………………………………………
.………………………………………………
………………………………………………
………………………………………………
(d) Application for authorised representative at
Clearing House
(Mumbai/
(e) Number of authorised representatives
already appointed :
(Please mention identity card numbers (1)_____________________
with the date of issue) (2)
_____________________
(3)
_____________________
(4)
_____________________
(f) Details of requests pending :
(Please
mention names of persons for which (1)
_____________________
applications
already submitted but ID cards (2)
_____________________
are
yet to be issued) (3)
_____________________
(4)
_____________________
III.
Particulars of the proposed Authorised Representative
(a) Name (First Surname) Mr./Ms._____________________________
(b)
Father's name ____________________________________
(c)
Date of birth (DD/MM/YY) ____________________________________
(d)
Current residential address ____________________________________
____________________________________
____________________________________
(e) Permanent address ____________________________________
____________________________________
____________________________________
(f) Specimen signatures of the proposed
authorised representative
(sign
within the box only)
Authorised
signatory of clearing
member
to attest the signature
of
the proposed authorised
representative
given in the box
above
by signing and stamping
within
the box only.
(sign
and stamp within the box only)
(g)
2 Coloured photographs of authorised representative (1.5" *1.5") :-
(1)Enclose
one photograph with the application duly stamped PASTE A PHOTOGRAPH HERE
DULY STAMPED
AND
SIGNED ACROSS
THE
FACE OF THE PHOTOGRAPH
(STAMP & SIGNATURE SHOULD
CROSS ONTO THE PAPER)
and
signed by the authorised signatory of the clearing member
across
the face of the photograph and
(2)Paste
the other photograph within the box
IV.
Declaration by member applicant
I/we
understand that :-
· This identity card is the property of the
National Securities Clearing Corporation Ltd.(NSCCL) and has been issued to the
Authorised Representative of the Clearing Member on the specific written
application of the clearing member for the limited purpose of recognising the
Authorised Representative of the Clearing Member by NSCCL / National Stock
Exchange of India Limited (NSEIL) to facilitate his entry into the Clearing
House and to receive and/or deposit the securities and/or other documents on
behalf of the Clearing Member.
· Any loss/ theft of the card must be immediately reported in
writing by the Clearing Member to NSCCL with full details and all efforts must
be made to trace the card and return it to the Clearing Corporation. Loss/theft
of ID card must be reported to police immediately.
· The card is non-transferable and must be
returned to NSCCL immediately in the event of cessation of employment/death of
Authorised Representative or on cancellation of
his authorisation by the Clearing Member/NSCCL or expiry of validity
whichever is earlier.
· The NSCCL is not responsible, in any manner
whatsoever, for any misuse of the card by any person with or without the
knowledge of the Clearing Member or the Authorised Representative.
· The card must be displayed by the Authorised
Representative on his person at all times while he is in the premises of the
Clearing House/ NSCCL/ NSEIL and must be shown on demand to the authorised
person of the Clearing House/ Clearing Corporation or the Exchange.
· The card must not be altered or mutilated in
any way.
·
NSCCL holds no responsibility if card is left behind or lost.
·
This ID card should be appropriately safeguarded, and I/we understand that I/we
shall be required to give an indemnity bond in case a request is made for a
duplicate ID card / replacement of an ID
card in case of loss/theft.
The
information given by me/us in this form is true to my/our personal knowledge
and I/we am/are solely responsible and liable
for its accuracy.
Date
____________________________
Place ___________________________
[Signature
of authorised signatory]
Stamp:
Address
of member (write within the box only)
Specimen
signature of the proposed authorised representative
(sign
within the box only)
Authorised
signatory of Clearing Member to attest the signature of proposed authorised
representative given in the box above by signing and stamping in the box.
(sign
and stamp within the box only)
-
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - -
FOR
USE BY NSCCL ONLY
Card No. ………… Date of issue………… Issuing authority…………
INDEMNITY BOND FOR DUPLICATE IDENTITY CARD
(COMPANY)
To,
National Securities Clearing Corporation Limited
Exchange
Plaza, C-1 Block G
Bandra
Kurla Complex
Bandra (E)
Mumbai - 400 051
Identity Card No._______________
We ____________________, a Private/Public Limited Company duly incorporated under the Companies Act, 1956 and having registered office at ___________________________________________ and principal place of business at _____________________________________________ through our Managing Director, Shri _________________________, S/o Shri _________________________, R/o _________________________________________________ do hereby solemnly and sincerely swear and affirm as under :
1. That an identity card having number _______________ was issued by National Securities Clearing Corporation Limited (hereinafter referred to as NSCCL) on my/our application on ____________ (date) in the name of my/our authorised representative, namely,______________________________ s/o__________________________________ r/o____________________________________________________ to facilitate his entry into the Clearing House and to receive and/ or deposit the securities and other documents on my/our behalf.
2. That the said Identity Card has been lost/misplaced/stolen and the same is not in my/our possession or in the possession of my/our said authorised representative.
3. That I/we have made a request to NSCCL to issue a duplicate Identity card in the name of my/our aforesaid authorised representative.
4. That in consideration of NSCCL issuing the said duplicate Identity Card, I/we do hereby indemnify NSCCL and bind myself/ourself, my/our heirs, executors and administrators, assigns and successors to pay and satisfy all claims and charges, costs, damages, demands, expenses and losses which NSCCL may sustain, incur or be liable for in consequence of having issued duplicate Identity Card on my/our above said request. NSCCL may realise the said claim, charges, cost, damages from my/our property(s) or from my heirs, executors, administrators assigns, successors, as the case may be, without demur.
5. I/We further undertake to pay or deposit any charges that may be decided by NSCCL, for issue of duplicate identity card, from time to time and I/we hereby authorise NSCCL to recover such charges by debiting my/our account where duplicate identity card is issued on my/our request, whether the original identity card is surrendered or not.
6. I/We further undertake on demand by NSCCL to return or deliver such Identity Card and without demand to surrender and return to NSCCL the original Identity Card when found or traced and to take all actions, suits, proceedings at my/our own cost as NSCCL shall require for the recovery thereof or otherwise in relation to the said Identity Card.
7. I/We hereby further undertake that this indemnity shall be enforceable jointly and severally against me/us, my/our heirs, successors and assigns and the benefits of the indemnity shall ensure for the benefit of NSCCL and successors and assigns of NSCCL and shall be irrevocable until discharge by me/us of all obligations devolving upon hereunder.
8. This indemnity shall not be affected by any change in the constitution of NSCCL or by reason of any merger or amalgamation of NSCCL with any other company or companies nor shall this indemnity be in any way prejudiced by absorbing of amalgamated company, corporation or concern.
In witness whereof I/we signed this……………………day of…………….two thousand and _______
Date:
Place : (Authorised Signatory)
Name and Address of Clearing Member
Witness no. 1
Name in block letters:
Full Address:
Signature:
Witness No. 2
Name in block letters:
Full address:
Signature:
INDEMNITY BOND FOR DUPLICATE IDENTITY CARD
(PARTNERSHIP FIRM)
To,
National Securities Clearing Corporation Limited
Exchange
Plaza, C-1 Block G
Bandra
Kurla Complex
Bandra (E)
Mumbai - 400 051
Identity Card No._______________
We, ____________________ being a registered/unregistered partnership firm having principal office at _______________________________________________ through our Managing Partner, Shri _________________, S/o _______________________, R/o __________________________________________ do hereby solemnly and sincerely swear and affirm as under :
1. That an identity card having number _______________ was issued by National Securities Clearing Corporation Limited (hereinafter referred to as NSCCL) on my/our application on ____________ (date) in the name of my/our authorised representative, namely,______________________________ s/o__________________________________ r/o____________________________________________________ to facilitate his entry into the Clearing House and to receive and/ or deposit the securities and other documents on my/our behalf.
2. That the said Identity Card has been lost/misplaced/stolen and the same is not in my/our possession or in the possession of my/our said authorised representative.
3. That I/we have made a request to NSCCL to issue a duplicate Identity card in the name of my/our aforesaid authorised representative.
4. That in consideration of NSCCL issuing the said duplicate Identity Card, I/we do hereby indemnify NSCCL and bind myself/ourself, my/our heirs, executors and administrators, assigns and successors to pay and satisfy all claims and charges, costs, damages, demands, expenses and losses which NSCCL may sustain, incur or be liable for in consequence of having issued duplicate Identity Card on my/our above said request. NSCCL may realise the said claim, charges, cost, damages from my/our property(s) or from my heirs, executors, administrators assigns, successors, as the case may be, without demur.
5. I/We further undertake to pay or deposit any charges that may be decided by NSCCL, for issue of duplicate identity card, from time to time and I/we hereby authorise NSCCL to recover such charges by debiting my/our account where duplicate identity card is issued on my/our request, whether the original identity card is surrendered or not.
6. I/We further undertake on demand by NSCCL to return or deliver such Identity Card and without demand to surrender and return to NSCCL the original Identity Card when found or traced and to take all actions, suits, proceedings at my/our own cost as NSCCL shall require for the recovery thereof or otherwise in relation to the said Identity Card.
7. I/We hereby further undertake that this indemnity shall be enforceable jointly and severally against me/us, my/our heirs, successors and assigns and the benefits of the indemnity shall ensure for the benefit of NSCCL and successors and assigns of NSCCL and shall be irrevocable until discharge by me/us of all obligations devolving upon hereunder.
8. This indemnity shall not be affected by any change in the constitution of NSCCL or by reason of any merger or amalgamation of NSCCL with any other company or companies nor shall this indemnity be in any way prejudiced by absorbing of amalgamated company, corporation or concern.
In witness whereof I/we signed this……………………day of…………….two thousand and
Date:
Place: (Authorised Signatory)
Name and Address of Clearing Member
Witness no. 1
Name in block letters:
Full Address:
Signature:
Witness No. 2
Name in block letters:
Full address:
Signature:
INDEMNITY BOND FOR DUPLICATE IDENTITY CARD
(PROPRIETORSHIP FIRM)
To,
National Securities Clearing Corporation Limited
Exchange
Plaza, C-1 Block G
Bandra
Kurla Complex
Bandra (E)
Identity Card No._______________
I _____________________ Son/Daughter/Wife of ____________________ R/o ____________________________________________ being sole proprietor/proprietrix of the firm ___________________________ having its principal office at __________________________________________ do hereby solemnly and sincerely swear and affirm as under :
1. That an identity card having number _______________ was issued by National Securities Clearing Corporation Limited (hereinafter referred to as NSCCL) on my/our application on ____________ (date) in the name of my/our authorised representative, namely,______________________________ s/o__________________________________ r/o____________________________________________________ to facilitate his entry into the Clearing House and to receive and/ or deposit the securities and other documents on my/our behalf.
2. That the said Identity Card has been lost/misplaced/stolen and the same is not in my/our possession or in the possession of my/our said authorised representative.
3. That I/we have made a request to NSCCL to issue a duplicate Identity card in the name of my/our aforesaid authorised representative.
4. That in consideration of NSCCL issuing the said duplicate Identity Card, I/we do hereby indemnify NSCCL and bind myself/ourself, my/our heirs, executors and administrators, assigns and successors to pay and satisfy all claims and charges, costs, damages, demands, expenses and losses which NSCCL may sustain, incur or be liable for in consequence of having issued duplicate Identity Card on my/our above said request. NSCCL may realise the said claim, charges, cost, damages from my/our property(s) or from my heirs, executors, administrators assigns, successors, as the case may be, without demur.
5. I/We further undertake to pay or deposit any charges that may be decided by NSCCL, for issue of duplicate identity card, from time to time and I/we hereby authorise NSCCL to recover such charges by debiting my/our account where duplicate identity card is issued on my/our request, whether the original identity card is surrendered or not.
6. I/We further undertake on demand by NSCCL to return or deliver such Identity Card and without demand to surrender and return to NSCCL the original Identity Card when found or traced and to take all actions, suits, proceedings at my/our own cost as NSCCL shall require for the recovery thereof or otherwise in relation to the said Identity Card.
7. I/We hereby further undertake that this indemnity shall be enforceable jointly and severally against me/us, my/our heirs, successors and assigns and the benefits of the indemnity shall ensure for the benefit of NSCCL and successors and assigns of NSCCL and shall be irrevocable until discharge by me/us of all obligations devolving upon hereunder.
8. This indemnity shall not be affected by any change in the constitution of NSCCL or by reason of any merger or amalgamation of NSCCL with any other company or companies nor shall this indemnity be in any way prejudiced by absorbing of amalgamated company, corporation or concern.
In witness whereof I/we signed this……………………day of…………….two thousand and
Date:
Place: (Authorised Signatory)
Name and Address of Clearing Member
Witness no. 1
Name in block letter:
Full Address:
Signature:
Witness No. 2
Name in block letters:
Full address:
Signature:
Annexure 24.29
FORM NO: NSEF 11A
(Format for reporting the settlement of
Negotiated Trades effected as Brokers & Agents in securities admitted to
trading on the CM segment of NSE - In Regular
Market )
Date :
TM Clearing Member Name :
TM Clearing Member Code :
Name of the person reporting :
Contract No (s) and Date Bought/Sold Counter party Buyer/Seller Security Name Settle-
ment Date Mode of Settlement Certi-ficate Nos. Distinctive Nos Cheque /pay order Nos.
Price Qty Amt(Rs.) Brokerage(Rs.)
____________________________________
Stamp and Signature of the Clearing Member
Annexure 24.30
FORM NO: NSEF 11A1
(Format for reporting the settlement of
Negotiated Trades effected as Brokers & Agents in securities admitted to
trading on the CM segment of NSE - In Depository Market)
Date :
TM Clearing Member Name :
TM Clearing Member Code :
Name of the person reporting :
Contract No (s) and Date Bought/Sold Counter party Buyer/Seller SecurityName Settlement
Date Mode of Settlement Cheque /pay order Nos. Price Qty Amt (Rs.) Brokerage (Rs.)
____________________________________
Stamp and Signature of the Clearing Member
Annexure 24.31
FORM NO: NSEF 11B
( Format for reporting the settlement of
Negotiated Trades effected as Principals in securities admitted to trading on
the CM segment of NSE - In Regular Market)
Date :
TM Clearing Member Name :
TM Clearing Member Code :
Name of the person reporting :
Contract No (s) and Date Bought/Sold Counter party Buyer/Seller Security Name Settlement Date Mode of Settlement Certi-ficate Nos. Distinctive Nos Cheque /pay order Nos. Price Qty Amt(Rs.)
____________________________________
Stamp and Signature of the Clearing Member
Annexure 24.32
FORM NO: NSEF 11B1
( Format for reporting the settlement of
Negotiated Trades effected as Principals in securities admitted to trading on
the CM segment of NSE - In Depository Market)
Date :
TM Clearing Member Name :
TM Clearing Member Code :
Name of the person reporting :
Contract No (s) and Date Bought/Sold Counter party Buyer/Seller Security Name Settlement
Date Mode of Settlement Cheque /pay order Nos. Price Qty Amt(Rs.)
____________________________________
Stamp and Signature of the Clearing Member
Annexure 25.1
Format of Letter requesting
activation of administrator user in
NSCCLs Clearing Interface System (NCIS)
Date:
The Manager
NSCCL - Securities Department
Mumbai - 400051
Dear Sir/ Madam,
Sub: Activation of account in NSCCLs
Clearing Interface System (NCIS)
We
are interested in availing the facilities provided through the NSCCL’s Clearing
Interface System (NCIS). We therefore request you to activate our account and
provide us necessary access in the said interface.
Please
find below the necessary details as required:
|
S No |
Particulars |
To be filled by the
Member |
|
1. |
Trading Member Code |
|
|
2. |
Member Name |
|
|
3. |
Contact Person (The account details will be sent to
this person) |
|
|
4. |
Address for Communication with Pin Code |
|
|
5. |
Phone Number with STD Code |
|
|
6. |
Mobile number of contact person |
|
|
7. |
Fax Number with STD Code |
|
We
hereby authorize NSCCL to act upon the instructions sent through the interface
and we shall be solely responsible for any errors pertaining to data entry from
our end.
We
would request you to advise us the account details allotted to us for this
purpose at the above mentioned address.
Yours
sincerely,
Authorized
Signatory
Name:
Designation:
Annexure 26.1
UNDERTAKING TO BE EXECUTED BY CLEARING
MEMBER
This Undertaking is executed at __________ on the ____ day of _________ 2000 by
Mr./Ms. __________________________ s/o / d/o / w/o __________________________, residing at ________________-_________ ________________________________ and having his/her office at ____________________________________________________ (Complete Address) *
M/s ______________________________________________, a partnership firm registered under the Indian Partnership Act, 1932 and having their office at _______________________________________________________________________ (Complete Address), *
M/s __________________________________________________________ Limited, incorporated as a company under the Companies Act, 1956 and having its registered office at ______________________________________________________________ (Complete Address), *
(hereinafter referred to as the "Clearing Member", which expression shall include its successors and assigns )
IN FAVOUR OF
National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400 051, (hereinafter referred to as "NSCCL", which expression shall unless repugnant to the context or meaning thereof mean and include its successors and assigns).
WHEREAS
a. NSCCL is a company having expertise in providing Clearing and Settlement services and is desirous of providing certain other services including Mutual Fund Service System (MFSS), etc. to its members
b. The Clearing Member has been admitted to the clearing membership of NSCCL and agreed to be bound by the Rules, Bye Laws, Regulations, Circulars, guidelines and other operational instructions issued by NSCCL from time to time.
c. NSCCL provides/may provide such services from time to time and may allow the Clearing Member to participate/avail of such services, subject to such terms and conditions prescribed by NSCCL for such services provided/to be provided by NSCCL from time to time..
1) IN CONSIDERATION OF THE FOREGOING, THE CLEARING MEMBER HEREBY AGREES AND UNDERTAKES AS UNDER
1. I/We agree to participate in the services provided/to be provided by NSCCL from time to time. I/We further agree that I/We shall consent for participation in such services provided/to be provided by NSCCL by expressly confirming to NSCCL in writing about my/our intent to participate in such services.
2. I/We agree that on my/our participation in any such services provided/to be provided by NSCCL, I/we shall be bound by the rules, bye laws, regulations, circulars, instructions, operating guidelines etc. issued by NSCCL for such services from time to time.
3. I/We shall maintain and preserve such information, records, books, documents etc. pertaining to my/our working as a participant, as the case may be, in the services provided/to be provided by NSCCL, for such period as may be specified by NSCCL from time to time.
4. I/We shall permit NSCCL or any other authority appointed by it for inspection, access to all information, records, books, documents, etc. as may be required thereof.
5. I/We shall submit periodic reports, statements, certificates and such other documents as may be required by NSCCL and shall comply with such audit requirements as may be prescribed by NSCCL from time to time.
6. I/We shall follow and comply with such orders or instructions including any such order or instruction, whether being in the nature of a penalty or otherwise, as may be issued by NSCCL or any committee of NSCCL duly constituted for the purpose, in the event of I/We committing any violation of any rules, bye-laws, regulations, practices, code of conduct, circulars, guidelines etc. prescribed by NSCCL with respect to the services provided /to be provided by NSCCL.
7. I/We shall use NSCCL facilities provided herein only for the purpose for which they are permitted to be used.
8. I/We hereby agree and undertake to indemnify and keep indemnified NSCCL harmless against all claims, demands, actions, proceedings, losses, damages, liabilities, costs, charges, expenses or obligations which may be brought or commenced against them or which they may or may have to bear, pay or suffer directly or indirectly as a result of such loss or damage arising as a result of NSCCL admitting me/us to participate in /avail of the services.
IN WITNESS WHEREOF, I/we have subscribed our name hereunto on the day, month and year above mentioned.
Signed and delivered by the within named
___________________
in the presence of
(1)_____________________________________
Name: __________________________________
Address: ________________________________
_______________________________________
(2)_____________________________________
Name: __________________________________
Address: ________________________________
________________________________________