September 24, 2012
Press Release No. 1
Introduction of new category of membership called
Alpha
effective from
NSE has professionalized
the broking industry by bringing in the concept of deposit based membership.
This has opened up opportunities for a large number of professionals, who
entered the broking industry for the first time. Over the years, these
professionals have thrived and have helped the broking industry to achieve
internationally benchmarked service and compliance standards.
In any market ecosystem,
multiple types of market intermediaries co-exist. These intermediaries could
have varied structures, diverse objectives and serve different classes of
investors. For example, some intermediaries may focus on servicing retail
clients spread across the geography, while others could focus on providing
services to institutional clientele. Some of them may choose to service niche
client segment while still others may not take on clientele business
altogether.
The systemic challenges
posed by each of these categories of intermediaries would vary. For example, a
retail brokerage servicing a large number of clients could be required to
establish and manage elaborate systems and processes to handle client funds /
securities, so as to protect investors’ interests, whereas the same may not be
the case with a brokerage firm trading essentially on its own account. The brokerage handling
customer funds therefore has to be required to place
larger capital and have higher networth, while a firm trading with its own
money, could be allowed to enter with a lower capital requirement. This
differentiation is critical to ensure that only well capitalized entities are
allowed to handle investor funds and those who are not sufficiently capitalized
should not have access to investor funds. This is essential to protect
investors’ interests.
In the current scenario all
market intermediaries, irrespective of whether they handle customer funds or
not, are subjected to the same base capital and networth requirements. However,
it is felt that firms who do not handle customer funds may be allowed access
with lower capital and networth. These firms can bring in innovative trading
ideas and strategies, that could add to the liquidity
of the trading platform. Such additional liquidity and resulting market depth
would benefit all market participants including retail investors. Since they do
not handle any outside investor funds, investor interests would not be
compromised.
To address the needs of
this entrepreneurial class, the Exchange has decided to innovate
membership requirements, particularly since they do not handle client accounts,
funds and securities. This new category of membership is designed to provide
quick, easy and cost efficient access to the trading platform to firms that do
not handle client accounts.
These firms can acquire
Capital Market Segment membership with a deposit of Rs. 20 lakhs and F&O
segment membership with a deposit of Rs.25 lakhs. Members can choose any one or
both the segments, as against the existing offer of combined membership of both
the segments, for a deposit of Rs. 1.10 crores. Networth requirements have also
been reduced by 50% to Rs.50 lakhs for this category.
Existing members of the
Exchange will be allowed to convert their current membership to the new ‘Alpha’ category. Resulting surplus
deposits with the Exchange will be utilized to pay transaction and
infrastructure charges, over a period of three years, after which the balance
will be refunded. Essentially, such members would not have any cash outflow for
paying transaction and other charges, during the period of utilization of the
surplus deposit, during those three years.
Press Release No. 2
News about Shriram EPC Limited
The
media had reports that Shriram EPC Limited may induct an equity partner in Sree
Jayajothi Cements.
The
Exchange, in order to verify the accuracy or otherwise of the information
reported in the media and to inform the market place so that the interest of
the investors is safeguarded, had written to the company.
Shriram
EPC Limited has vide its letter inter-alia
stated," The Company is in the early stages of discussions with Private
Equity Investors in Sree Jayajothi Cements Limited (SJCL) and nothing beyond it
as of now."
Press Release No. 3
Clarification by NEPC India Limited
Significant
price movement has been observed in NEPC India Limited.
The
Exchange, in order to ensure that investors have latest relevant information
about the company and to inform the market place so that the interest of the
investors is safeguarded, had written to the company.
NEPC
India Limited has vide its letter inter-alia stated," The Company has at
present no information / announcement (including impending announcement)".
Press Release No. 4
Securities listed and
admitted to dealings – KITEX, MAYURUNIQ & ROSSELLIND
The equity
shares of the following companies shall be listed and admitted to
dealings on the Exchange w.e.f. September
25, 2012. Trading shall be in the Normal Market
segment – Compulsory Demat (Rolling Settlement) for all investors.
|
Sr. No. |
Symbol |
Name of the Company |
ISIN Code |
|
1 |
KITEX |
Kitex Garments Limited |
INE602G01020 |
|
2 |
MAYURUNIQ |
Mayur Uniquoters Limited |
INE040D01012 |
|
3 |
ROSSELLIND |
Rossell India Limited |
INE847C01020 |