DOWNLOAD REF NO: NSE/CMPT/11274
NATIONAL SECURITIES CLEARING CORPORATION LIMITED
CONSOLIDATED CIRCULAR - CAPITAL MARKET SEGMENT
Circular No. NSCCL/SEC/2008/0486 September
10, 2008
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 National Securities Clearing Corporation Limited
R. Sundararaman
Senior 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.
Deals in the
a. Trade for Trade-Surveillance market (TFTS),
b. Inter Institutional Market (hereinafter referred to as IL Market deals),
c. Block Trade window (hereinafter referred to as BL market deals)
2. Deals executed in the Auction Market
3. Deals executed on the Limited Physical Market (hereinafter referred to as LP Market deals).
4. Deals executed in the Retail Debt Market
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:
1. Deals executed in the Trade for Trade market (hereinafter referred to as TT Market deals).
2. Any other deals not specified herein.
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 and Insurance Companies 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 not later than
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 or before
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:
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.
Item 6
PROCEDURE FOR PAY-IN /PAY-OUT OF FUNDS
In pursuance of Regulation 13 of the Capital Market
Regulations, the revised 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 clearing account for the cash market segment with any one of the designated clearing banks at the designated branch of the bank, as given in Annexure 6.1. The 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.
· Clearing members shall irrevocably authorize the clearing bank to access their clearing account for debiting and crediting their clearing account 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 bank.
· Clearing members can deposit funds into this account in any form and can withdraw funds from this account only in self-name.
· Clearing members having funds obligation to pay shall have clear balance of requisite funds in the clearing account 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 account without the prior written consent
of the Clearing Corporation
· The clearing banks shall debit/credit the clearing account 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 account 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 shortages, etc. shall be given effect only after receiving a written/electronic confirmation from their respective clearing banks.
6.3 Procedure
for change in clearing banks
In case a clearing member wishes to shift the clearing account from one designated clearing bank to another, the following procedure shall be followed:
· The clearing member shall request the clearing bank in writing for issuing a No Objection Certificate (NOC) for shifting of the clearing account.
· The clearing member shall request the Clearing Corporation in writing seeking its permission for shifting of the clearing account and enclose the NOC received from the existing 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 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 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 clearing account shall be operational and also the date after which the existing clearing account may be closed by the clearing member.
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
7.1.1 Auto Delivery Out
For pay-in through NSDL a facility has been provided to members to execute delivery-out instructions for moving securities from CM Clearing Pool Account to Delivery Account generated automatically by the Clearing Corporation based on the net delivery obligations of its Clearing Members.
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 investors 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 .
Instructions and other details including
the file structure is described in detail in Annexure 7.2
7.2.2
Inter-Depository Transfer
The direct client account payout facility is further extended to credit
payout of securities directly to the client account regardless of the
depository in which securities pay in is received since online connectivity
between the depositories has been established and operational. 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 or the Beneficial Owner’s account number
entitled to receive the pay-out of
securities 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+5 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
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 book-closure / record date for corporate actions such as issue of dividend, bonus securities, AGM, and EGM for securities traded in the compulsory dematerialised mode.
In case a company announces any of the aforesaid corporate action, the Clearing Corporation shall not announce a ‘No-Delivery’ in case trading of such securities immediately after becoming ex-benefit. All cum-transactions which cannot be auctioned on cum basis shall be compulsory closed out. Similarly, 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 bonds, debenture and 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
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.
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:
i. Cash
ii. Fixed Deposit Receipts (FDRs) issued by approved banks as given in Annexure 10.1 and deposited with approved Custodians (refer to annexure 10.2) or with the Clearing Corporation. (Formats of letters to be submitted are prescribed in Annexures 10.3.)
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 Annexures 10.8.
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 (refer Annexure 10.5) and revised on a monthly basis 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 10.6.
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.
· If the security deposit shortage is equal to or greater than Rs. 5.00 lakhs, the trading facility would be withdrawn with immediate effect.
·
If the security deposit
shortage is less than Rs. 5.00 lakhs, the member would be given one calendar
week’s time to replenish the shortage and if the same is not done within this
timeframe the trading facility would be withdrawn.
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 10.8
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 10.6.
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 Annexures 10.3 & 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 Annexures 10.3 & 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 release 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 Annexures 10.3 & 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 10.8.
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 release 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 10.14. 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 10.15.
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 10.12. 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.
Further, 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.
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 Annexure 10.13.
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 10.4.
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
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.
At all points of time, the liquid
assets of the member 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 of securities is given in Annexure 11.7
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 11.1
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 11.4
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 11.2
c.
For this purpose, there would be no
netting of positions across different settlements.
d.
As
specified by SEBI vide Cir. Ref No. MRD/DoP/SE/Cir- 6 /2006 dated
e.
The VaR margin rates shall be made available in the extranet server and
to the public at large through the NSE – website.
f.
File format for VaR based margin rates is given in Annexure 11.3.
g.
The VaR margin so collected shall be
released on completion of pay-in of the settlement.
h.
The details of all margins (VAR,
extreme loss margin and mark to market) will be downloaded to members in their
respective extranet directory The
format of the report has been provided in Annexure 11.4.
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 11.2
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 11.4
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 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
11.11
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 11.12
11.9 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)
·
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 are also provided with a facility to provide contraction
details in respect of institutional trades. Institutional transactions rejected
by custodians for whom the member has provided contraction details shall
continue to be treated as institutional trade and accordingly margin exemption
shall be provided.
·
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 five
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
11.10 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.
11.11 Early Pay-in of
Securities for Margin Exemption
As
stated in point 11.8 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.
In addition, the following facility
is being provided to all members making early pay-in of securities.
1.
Members
shall receive a report on the extranet server at regular intervals through out
the day, detailing the early pay-ins made by the members and received by the
Clearing Corporation. Such details shall be provided intra-day on an incremental
basis.
2.
Further
members may make early pay-in of securities even before execution of the trade
and provide details of clients to whom such early pay-in shall be allocated.
This shall ensure that on execution of trade the benefit of early pay-in is
available to the respective clients. However it will be subject to receipt of
securities from depositories.
3.
Members
shall make early pay-in only in respect of settlement type ‘N’ and ‘W’.
Members
shall provide the details of the clients to whom early pay-in benefit is to be
provided through a file upload. In order to facilitate the upload of client
details file during the day members are being provided with “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 (Item 25.4)
11.12
Early Pay-in of Funds for Margin Exemption
As
stated in point 11.8 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:
1.
Members/Custodians
shall provide the details of the clients for whom early pay-in benefit is to be
provided through a file upload. The format of the file to be uploaded is provided
in Annexure 11.6
2.
The file
shall be uploaded using the menu ‘Funds early pay-in’ provided in ‘Collateral
Interface for Members (CIM)’- an online facility provided to
Members/Custodians.
3.
Benefit for
early pay-in of funds shall be provided only for those clients for whom the
details are provided by the member/ custodian subject to confirmation of the
funds from the respective clearing bank of the member/custodian.
4.
The total
amount of early pay-in summed across all the clients as provided in the file by
the member/custodian shall be collected as early pay-in of funds from the
settlement account of the member/custodian.
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.
Early
pay-in of funds specified by the member/custodians for a specific client and
for a settlement shall be allocated against the securities in the descending
order of the net buy value of outstanding position of the client.
7.
Early pay-in
of funds provided by the member/custodians shall be adjusted against the
settlement obligation of the member/custodians in the respective settlement.
11.13
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 |
.
11.14
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
11.15 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
·
At the end of each calendar month, members who have exceeded 90% of
utilistion of capital towards margin utilisation during the day for more than
7days in the current month shall be identified
·
The capital required to bring the capital utilisation to a level of 85%
at the time of violating the trigger point of 90% on each of those occassions
shall be noted for the members. The
highest of such amounts for the identified members during the month shall be
called for as additional capital.
·
The
requirement shall be communicated to members on the first day of the subsequent
month.
·
The members
shall be required to provide the amount
of additional capital in the form of Cash, FDRs and Bank Guarantees within
three working days
·
No benefit
towards margin, etc shall be available to the member on the amount of
additional capital so collected.
·
In case of
non- payment of additional capital within the stipulated time limit a penalty
as applicable for funds shortage shall be levied for the period of default.
·
The
additional capital so collected shall be retained with the Clearing Corporation
for a period of one calendar month.
·
In case a
member is liable to provide additional capital in the subsequent month, the
amount of additional capital shall be recomputed and the excess /deficit shall
be refunded /called for.
·
The amount
of additional capital shall be informed to the members on the first day of the
subsequent month vide a letter in the extranet directory.
·
The letter
of intimation of additional capital shall be available to members in the
extranet directory /< TM ID>/REPORTS.
·
The naming
convention of the letter shall be as under.
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
11.16 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.
11.17 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.
11.18 Cross Margining
As per SEBI
Circular Ref No: MRD/DoP/SE/Cir-13/2008 dated
1. Cross margin facility shall be available initially for institutional trades confirmed by custodians only.
2. Cross margin facility shall be available to positions of the Institution on T+1 day in cash market having corresponding off-setting positions in the stock futures market at end of that day.
3. Cross margin benefit shall be available only for VaR margins in the cash market
4. Extreme Loss Margin and mark to market margin shall continue to be levied on the entire cash market position.
5. Near month stock futures positions shall not be considered for cross margins benefit three days prior to expiry (as currently being done in the case of calendar spread.)
6. There shall be no change in the margins on the F&O positions.
7. The break up of cross margin benefit at institution level shall be downloaded to the custodian daily in their respective directories .
8. The custodian shall be provided details of cross margining benefit at a CP level code on daily basis.
11.19 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.
11.20
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.
11.21 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 11.4
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:
o If the selling client is not eligible - the
trade shall be compulsorily closed out and a penalty of Rs.25000 shall be
imposed.
o If the buying client is not eligible - a penalty
at the rate of 1% of the value of the trade or Rs 1 lakh whichever is lower
shall be imposed.
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:
a.
The shares
under objection have not been introduced by the member on the Exchange, however
he is not able to produce the delivery slip / delivery details statement on the
scheduled withdrawal day.
b.
Where the
IM had not approached the Clearing House on the scheduled withdrawal date on
account of oversight/mistake.
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, 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:
· Form BDC - 1A in triplicate
· Original Transfer Deed
· Share Certificates
· Original Company Objection Memo or Certified copy of the memo.
· In case of fake / forged /stolen / missing shares, all documents as given in SEBI Good /Bad Delivery guidelines no. 108 / 109. (as per Item 14)
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.
· Prescribed Form BDC - 2A in triplicate
· Rectified / replaced shares
· Benefits ( if any ) due
· Copy of Form BDC - 1A
· Copy of the company objection memo
· Cheque for value of transfer stamps and/or corporate benefits
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.
· Fresh copy of form for Second Time objections (in triplicate)
· Transfer deed and share certificates returned by the company
· Company objection memo
· A copy of Form BDC - 1A and 2A which have been used for reporting the first time objection.
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.
· Form BDC - 1B (in quadruplet)
· Original Transfer Deed
· Share Certificate
· Company Objection Memo or Certified copy of the memo.
· In case of fake / forged /stolen / missing shares, all documents as given in SEBI Good /Bad Delivery guidelines no. 108 / 109.( as per Item 14)
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.
· Prescribed Form BDC - 2B ( four copies )
· Rectified / replaced shares
· Benefits ( if any ) due
· Copy of Form BDC - 1B
· Copy of the company objection memo
· Demand draft for value of transfer stamps or benefits
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.
· Transfer deed and share certificates returned by the company
· Company objection memo
· Second Time Objection form ( in quadruplet)
· A copy of Form BDC - 1B and 2B which have been used for reporting the first time objection.
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 providing details about settlement
The following reports are available to members providing details about settlement:
1) DFDS (Demat Final Delivery Statement)
2) DFRS (Demat Final Receipt Statement)
3) CADT (Direct Client Pay Out Report)
4) DWTH (Memberwise Withheld Securities Statement)
5) MWST ( STT details)
All reports are in csv format
25.1.1
Security Wise Demat Delivery Statement
Header Record
Record type, File Type, Member type, Member Code, Date, Number of records, Total Qty
Record Type = 01
File Type = DFDS
Date = The input date (Payin Date) of the report with format YYYYMMDD
Number of Records = Total Number of detail records
Total Qty = Total of quantities across all securities appeared in the report
Detailed Record
Record Type,Sett Type,Sett No,Del Type,Symbol,Series,ISIN,Quantity Delivered,Depository,Transaction No
Record Type =10
25.1.2. Security Wise Demat Receipt Statement
Header Record
Record type, File Type, Member type, Member Code, Date,Number of records, Total Qty
Record Type = 01
File Type = DFRS
Date = The input date (Payin Date) of the report with format YYYYMMDD
Number of Records = Total Number of detail records
Total Qty = Total of quantities across all securities appeared in the report
Detailed Record
Record Type,Sett Type,Sett No,Del Type,Symbol,Series,ISIN,Quantity Received,Depository,Transaction No
Record Type =10
25.1.3. Direct Client Payout Report.
Header Record.
Record type, File Type, Member type, Member Code, Date,Number of records, Total Qty
Record Type = 01
File Type = CADT
Date = The input date (Payin Date) of the report with format YYYYMMDD
Number of Records = Total Number of detail records
Total Qty = Total Qty received to the member
Detailed Record 1 (Securitywise client level allocation)
Record Type,Sett Type,Sett No,Del Type,Symbol,Series,ISIN,Qty Recd, Depository, Transaction No, Qty Credit to CM Pool A/c / Clearing A/c, Qty Credit to Beneficiary A/c
Record Type =10
Detailed Record 2 (Details of Direct Payout to Beneficiary Account)
Record Type,Sett Type,Sett No,Del Type,Symbol,Series,ISIN,Depository, Beneficiary Account No, Qty Reqd to be in Beneficiary A/c, Qty actually credited in Beneficiary A/c, Transaction No
Record Type =20
25.1.4. Memberwise Withheld Securities Statement
Header
Record
Record type, File Type, Member type, Member Code, Date, Number of records, Total Qty
Record Type = 01
File Type = DWTH
Date = The date in the file naming convention of the file with format YYYYMMDD
Number of Records = Total Number of detail records
Total Qty = Total of Withheld qty appeared in the report
Detailed
Record
Record Type, Settlement Type, Settlement No, Del Type, Symbol,Series, ISIN, Depository, Withheld qty, Released qty, Balance qty
Record Type =10
25.1.5. Securities Transaction Tax (STT)
File name: MWST_<XXXXX>_DDMMYYYY.csv
where
MWST = Member wise securities transaction tax
XXXXX = Trading Member code
DDMMYYYY = Trade Date
All of the following data will be contained in one file only. The file will be a comma separated file.
Control record type 10 - Trading
Member level STT information
|
Sr. No |
Field |
Mandatory/Optional |
Description |
|
1. |
Record Type |
Mandatory |
Value – 10 |
|
2. |
STT date |
Mandatory |
DD-MON-YYYY |
|
3. |
Due date of payment |
Mandatory |
DD-MON-YYYY |
|
4. |
Member type |
Mandatory |
|
|
5. |
Member code |
Mandatory |
|
|
6. |
Total STT |
Mandatory |
|
Detail record type 20 - Client
level STT information
|
Sr. No |
Field |
Mandatory/Optional |
Description |
|
1. |
Record Type |
Mandatory |
Value – 20 |
|
2. |
STT date |
Mandatory |
DD-MON-YYYY |
|
3. |
Client code |
Mandatory |
|
|
4. |
Total STT |
Mandatory |
|
Detail record type 30 - Client
Securities level STT information
|
Sr. No |
Field |
Mandatory/Optional |
Description |
|
1. |
Record Type |
Mandatory |
Value – 30 |
|
2. |
STT date |
Mandatory |
DD-MON-YYYY |
|
3. |
Trading Client code |
Mandatory |
|
|
4. |
Settlement Type |
Mandatory |
|
|
5. |
Settlement Number |
Mandatory |
|
|
6. |
Security Symbol |
Mandatory |
|
|
7. |
Security Series |
Mandatory |
|
|
8. |
Total Buy quantity |
Mandatory |
|
|
9. |
Total Sell quantity |
Mandatory |
|
|
10.
|
Total Buy value |
Mandatory |
|
|
11.
|
Total Sell value |
Mandatory |
|
|
12.
|
Volume Weighted Average Price |
Optional |
Applicable only for
netted settlements |
|
13.
|
Purchase quantity – delivery |
Mandatory |
|
|
14.
|
|
Mandatory |
|
|
15.
|
|
Mandatory |
|
|
16.
|
Purchase value – delivery |
Mandatory |
|
|
17.
|
|
Mandatory |
|
|
18.
|
|
Mandatory |
|
|
19.
|
STT purchase delivery |
Mandatory |
|
|
20.
|
STT sale delivery |
Mandatory |
|
|
21.
|
STT sale other than delivery |
Mandatory |
|
|
22.
|
Total STT |
Mandatory |
|
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 pm |
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:
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 trade 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.
25.3.1.1
Instructions for sending Files
1. The files containing data in respect of client code Modifications shall be provided in the format specified as under and must be placed in the Extranet server in the respective member directory in the path: cld\upld
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.
Ø 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.
Ø 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.
Ø 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 following path: cld\dnld
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.
6.
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 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 |
2. File structure of the return file sent to member by NSCCL is given below:
Once the client code modification
file sent by a trading member has been processed, a return file would be sent
to the member indicating the status of processing.
File naming convention: CLD_<YYYYMMDD>.Ynn
where,
CLD - file type
YYYYMMD - 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
25.3.2.1 CP code
Modification File to be sent by Members to NSCCL on T Day :
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.
File Name - YYYYMMDD.Tnn (YYYY indicates year, MM indicates month, DD indicates date, T is the file indicator, nn is the batch no). The file shall be in a CSV (Comma Separated value) format.
File Structure
Control Record :
|
Field Name |
Length |
Mandatory/Optional |
|
Record type |
Number(2) |
Mandatory (Value =01) |
|
Member Type |
Char(1) |
Mandatory |
|
Member Code |
Char(5) |
Mandatory |
|
Batch date |
Char(8) |
Mandatory (Format: DDMMYYYY) |
|
Batch Number |
Number(7) |
Mandatory |
|
Total Number of Records |
Number(6) |
Mandatory |
A sample of the control record is given below
01,M,00008,13111998,0000001,000001
Detail record :
|
Field Name |
Length |
Mandatory/ Optional |
|
Record type |
Number(2) |
Mandatory (value = 20) |
|
Custodial Participant code |
Char(12) |
Optional |
|
Warehouse code |
Char(1) |
To be left blank |
|
Buy/Sell Flag |
Char(1) |
Mandatory |
|
Trade Number |
Number(16) |
To be left blank |
|
Order Number |
Number(16) |
Mandatory |
A sample of the detail record is given below
20, ABCD123456AB,Y,B, ,1998102700000441
25.3.2.2 CP code
Modification Return File for Members sent by NSCCL on T day:
If the File sent by trading members is processed successfully, a Status indicator (Success / Reject) shall be added to each detail record and a return file will be generated and placed on the FTP server for the purpose of enabling members to pick up their respective files and also know about the status of the record.
File Name : YYYYMMDD.Snn (YYYY indicates year, MM indicates month, DD indicates date, S is the file indicator, nn is the batch no ). The above files would be in a CSV (Comma Separated value) format.
File Structure
Control Record :
|
Field name |
Length |
Mandatory/ optional |
|
Record Type |
Number (2) |
Mandatory (value =1) |
|
Member type |
Char (1) |
Mandatory |
|
Member Code |
Char (5) |
Mandatory |
|
Batch date |
Char (8) |
Mandatory (format DDMMYYYY) |
|
Batch Number |
Number (7) |
Mandatory |
|
Total Number of records |
Number (6) |
Mandatory |
A sample of the control record is given below
01,M,00008,13111998,0000001,000001
Detail record :
|
Field Name |
Length |
Mandatory/ Optional |
|
Record type |
Number(2) |
Mandatory (value = 20) |
|
Custodial Participant code |
Char(12) |
Optional |
|
Warehouse code |
Char(1) |
Optional (value =Y for warehoused trades) |
|
Buy/Sell Flag |
Char(1) |
Mandatory |
|
Trade Number |
Number(16) |
Optional |
|
Order Number |
Number(16) |
Mandatory |
|
Status Flag |
Char(1) |
Mandatory. The values can be (Success-S, Reject-R) |
A sample of the detail record is given below
20, ABCD123456AB,Y,B, ,1998102700000441,S
If the file contains errors, then it is not processed. The original file shall be returned to the members. The file naming convention for such files shall be YYYYMMDD.Rnn, (YYYY indicates year, MM indicates month, DD indicates date, R is the file indicator, and nn is the batch no ).
25.3.2.3 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.
File Name <XXXXX>_RC<YYYYMMDD>.Tnn
Where,
XXXXX - Member code
YYYYMMDD - Trade Date in YYYYMMDD format
nn - The batch number of file to be uploaded.
File location: In the extranet in \<TM
FOLDER>\RC\Upld. Members are requested to note that the trading member code
should not be prefixed with the file name.
File structure: The structure of the RC file
would be same as Custodian Participant Code modification file (CPCODE)
The return files generated shall be kept in the
\<TM FOLDER>\RC\Dnld folder by the Clearing Corporation.
25.3.3 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
File location
In the extranet folder \<TM FOLDER>\RC\Dnld
File naming
convention:
File Name <XXXXX>_RC_<YYYYMMDD>.Dnn
Where
XXXXX Member Code
YYYYMMDD SYS 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 CD |
|
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 |
|
25.3.4
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, such obligations will be reverted to the member, allocation to CP codes shall not be allowed thereafter, and margins will be applicable with immediate effect.
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 flat file to NSCCL at the end of each trading day.
2. This designated CP code shall be used by members only for those institutional clients which are exempted from margins and exposure 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. A separate ‘Otr’ folder shall be created under <member code> folder. In ‘Otr’ folder two subfolders namely ‘Dnld’ and ‘Upld’ have been created. The OT*.T* shall be downloaded to the member. The same file shall be kept in \<TM FOLDER>\OTR\Dnld folder. The member shall also keep the OTR contraction file in the \<TM FOLDER>\OTR\Upld. The same file shall be picked up and processed by NSCCL. The files that are successfully picked up by NSCCL for processing shall be moved in the ‘success’ subfolder in the ‘\<TM FOLDER>\OTR\Upld’ folder.The return file shall be downloaded to the member in \<TM FOLDER>\OTR\Dnld
5. The files which are uploaded by members in ‘Upld’ folder with wrong naming conventions shall be renamed to <filename>.failed. E.g. if a file with name OT200501311.N01 is placed instead of correct name OT20050131.N01, the file shall be renamed as OT200501311.N01.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.
6. The file uploaded by members in ‘Upld’ folder having the file size as zero bytes shall be renamed to <filename>.failed. E.g. if a file with name OT20050131.N01 is placed having a byte size as 0 bytes, the system shall rename the same file as ‘OT20050131.N01.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. 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>.
8. 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.
9. 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.
10. 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.
For example the file sent on January 28, 2008 will be named as OT20080128.T01 and on January 29, 2008 will be named as OT20080129.T01.
Control record:
|
Sr. No. |
Field |
Length |
Mandatory/Optional |
Description |
|
1 |
Record Type |
CHAR(2) |
Mandatory |
Value - 01 |
|
2 |
File Type |
CHAR(4) |
Mandatory |
OTR |
|
3 |
Member Type |
CHAR(1) |
Mandatory |
Value – M |
|
4 |
Member Code |
CHAR(5) |
Mandatory |
Value – TM code |
|
5 |
Batch Date |
CHAR(8) |
Mandatory |
Value – same as in file name Format : YYYYMMDD |
|
6 |
Batch Number |
Number (2) |
Mandatory |
Value - 01 |
|
7 |
No. of records |
Number (7) |
Mandatory |
Total no of records in the file |
Detail record:
|
Sr. No |
Field |
Length |
Mandatory/ Optional |
Description |
|
1 |
Record Type |
CHAR (2) |
Mandatory |
Value = 10 records for which action is to be taken by members Value = 20,30 indicates for information only |
|
2 |
Buy/Sell flag |
CHAR (1) |
Mandatory |
Value B- Buy side, S – Sell side |
|
3 |
Settlement Type |
CHAR (1) |
Mandatory |
Settlement Type |
|
4 |
Settlement Number |
Number (7) |
Mandatory |
Settlement Number |
|
5 |
Security Symbol |
CHAR (10) |
Mandatory |
Security Symbol |
|
6 |
Security series |
CHAR (2) |
Mandatory |
Security series |
|
7 |
CP code |
CHAR (12) |
Mandatory |
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 |
Number(9) |
Mandatory |
Total Obligation quantity |
|
9 |
Obligation Value |
Number (15,2) |
Mandatory |
Total Obligation value |
|
10 |
Contract Note Number |
CHAR(10) |
Optional |
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 |
|
Optional |
A unique OTR no. generated ( will be given for record type 20 only) |
|
12 |
Confirmation flag |
CHAR (1) |
Optional |
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.
Naming convention:
OT<YYYYMMDD>.Nnn where YYYYMMDD - Date in YYYYMMDD format and nn is the batch no of the file sent for the day. The file shall be in csv format.
For example the file that members may send on January 28, 2008 will be as OT20080128.N01 and a second file on January 28, 2008 will be as OT20080128.N02.
Control record:
|
Sr. No |
Field |
Field length |
Mandatory/ Optional |
Description |
|
1 |
Record type |
CHAR (2) |
Mandatory |
Value = 01 |
|
2 |
File Type |
CHAR (4) |
Mandatory |
Value = OTR |
|
3 |
Member Type |
CHAR (1) |
Mandatory |
Member Type ( Value = M) |
|
4 |
Member Code |
CHAR (5) |
Mandatory |
Member code for which file generated/received (Value = TM_code) |
|
5 |
Batch Date |
CHAR (8) |
Mandatory |
Format : YYYYMMDD 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 |
Field length |
Mandatory/ Optional |
Description |
|
1 |
Record type |
CHAR (2) |
Mandatory |
Value – 10 for OTR Allocation Record. |
|
2 |
Buy/Sell flag |
CHAR (1) |
Mandatory |
Value B – Buy side , S – sell side |
|
3 |
Settlement type |
CHAR (1) |
Mandatory |
settlement type |
|
4 |
settlement Number |
Number (7) |
Mandatory |
settlement number |
|
5 |
Security symbol |
CHAR (10) |
Mandatory |
security symbol |
|
6 |
Security series |
CHAR (2) |
Mandatory |
security series |
|
7 |
CP code |
CHAR(12) |
Mandatory |
the value will be INST |
|
8 |
Allocated qty |
Number (9) |
Mandatory |
qty to be allocated to a CP |
|
9 |
Allocated Value |
Number (15,2) |
Mandatory |
value of the allocated qty |
|
10 |
Custodian Participant Code |
CHAR (12) |
Mandatory |
The Custodial participant code which the qty and value is to be allocated |
|
11 |
Contract note number |
CHAR (10) |
Mandatory |
This number is mandatory if the quantity, value is allocated to a valid CP |
|
12 |
OTR No |
Char (10) |
Optional |
This is required to be given if the TM desires to modify a record already allocated. |
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 Procedure for making early pay-in of shares
Such positions for which
early pay-in (EPI) of securities is made are exempt from margins. Members can
make the early pay-in of securities through either of the depositories viz NSDL
and CDSL.
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.
CDSL
The 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 11.5
Following procedure is required to
be followed by the members to make early pay-in as provided by CDSL:
1. Members who want to do an early pay-in
shall fill in the instruction slip for early pay-in and deliver the same to his
DP. The slip shall mention the early
pay-in account of the member as specified by NSCCL. The details required are
NSCCL ID, from account no., Settlement Information (Type & Number), CM-ID,
ISIN, Quantity and Early Pay-in Account No.
2. Based on the instruction slip received by
the DP, the DP shall enter the same in the CDS DP front end through the early
pay-in screen in the settlement menu.
Immediately on entry of the said instruction, the securities would be
transferred from the concerned account to the early pay-in account mentioned in
the said instruction. In case, there is
insufficient balance, the said transfer will fail. Early pay-in can be setup for a settlement
from the first trade date till the day of pay-in only.
3.
Members are requested to contact their respective DP’s for further
details.
25.4.1 Client level early pay-in files for securities
Members desirous of giving the early pay-in benefit to specific clients are required to provide a file in the specified format as under. The client level early pay-in file shall also be provided by Members who desire to get early pay-in benefit for transaction in ‘IL’ and ‘BL’ sub-segment.
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
25.5 Reports
available via extranet
8 reports, inter-alia generated by
Clearing Front End (CFE) Software shall also be made available on the extranet.
The following reports will be in lis format and would be available on the
extranet in the clearing folder of the members.
|
Report |
Nomenclature |
|
Daily obligation
statement |
C_memcode_DOBG_settypno_ddmmhhmmss.lis.gz |
|
Final Obligation
statement |
C_memcode_FOBG_settypno_ddmmhhmmss.lis.gz |
|
Security Shortage
Statement |
C_memcode_SHRT_
settypno_ddmmhhmmss.lis.gz |
|
Daily Funds Statement |
C_memcode_DFND_
ddmmhhmmss.lis.gz |
|
Auction square up
debit statement |
C_memcode_ASQR_settypno_D_ddmmhhmmss.lis.gz |
|
Auction square up
credit statement |
C_memcode_ASQR_
settypno_R_ddmmhhmmss.lis.gz |
|
Auction Difference
Statement |
C_ memcode _ADIFF_
settypno _ddmmhhmmss.lis.gz |
The corporate actions report ‘C_CORP_ACT_ddmmyyyy.txt’
shall be available in the common\CorporateActions folder on the extranet.
These reports would be available for download from the
following three sources:
A)
Via the
Extranet FTP (Leased Line 51.1.100.1 & VSAT 61.1.1.2)
B)
Via the
Internet (IP address 203.199.75.110)
C)
Via
Connect2NSE (MPLS 10.5.1.11 & Internet 203.199.75.107)
25.6 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 would be in
addition to the existing facility of file uploads on the extranet for the above
activities. Members would also be able
to 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 25.1. 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
–
1.
Execute
the relevant undertaking (as per Annexure 26.1) and submit the same to NSCCL.
Please note the following in this regard:
·
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.
2.
Open a
bank account with one of the clearing banks and issue a letter of undertaking
(as per Annexure 6.2.1) to the bankers irrevocably authorising the bank to
debit/credit the bank account as per instructions received from NSCCL.
3.
Send an
Account Opening confirmation received from the Bank to NSCCL conveying the bank
account detail. Members have the option to use their settlement account for the
Capital Market operations for MFSS as well.
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 6.1
Designated clearing banks
|
Clearing Bank |
Address |
Contact Person & Numbers |
|
Axis Bank Ltd. |
Capital Market Division Fort, Mumbai - 400 001 |
Mr. Sunil Sharma, Asst. Vice President Tel: 66107250 / 78 / 80 Fax: 66107284 |
|
Bank of India Ltd. |
Stock Exchange Branch, P.J.Towers, Dalal Street Fort , Mumbai - 400 023 |
Mr. R. S. Nair, Dy. General Manager Tel: 22722400 / 396, 22721787 / 88 Fax: 22721782 |
|
Canara Bank Ltd. |
NSE Branch, Varma Chambers, 1st Floor Fort , Mumbai - 400 001 |
Mr. Paratho Sarathi, Chief Manager Tel: 22693157, 22633006, 22658291 Fax: 22675650, 22670033 |
|
Citibank N.A. |
CITI group center, 6th floor, C-61, Bandra Kurla Complex, Bandra (East) Mumbai – 400 051 |
Mr. Rajarshi Chakraborty, Asst Vice President Tel. No.: 40015652 Mr. KVP Satish Chandra, AVP Tel. No.: 40015192 |
|
The Hongkong & Shanghai Banking
Corporation Ltd. |
52/60, M Fort, Mumbai - 400 001 |
Mr. Ritesh Jain, Vice President Tel: 22681175 / 22681690 Fax : 22734388 |
|
ICICI Bank Ltd. |
Capital Market Division Mafatlal Chambers, ‘B’ wing, 3rd Floor, N.M. Joshi Marg, Lower Parel (East) Mumbai 400 013 |
Ashish Kapoor - 9930061165 Hemanshi Shah - 9833988770 Mr. Devendra N
Chandavarkar, Chief Manager Tel: 66672085 Fax: 66661430 |
|
HDFC Bank Ltd. |
1 st Floor, 65, Mumbai Samachar Marg, Mumbai - 400 023 |
Mr. Chetan A. Shah, Asst Vice President Tel: 24921750 Mr. Ashish Agarwal Tel: 24988484 Extn 3565 Fax : 24923411 |
|
IDBI Bank Ltd. |
Mittal Tower, ‘A’ Wing, 2nd Floor, Nariman Point, Mumbai - 400 021 |
Mr.Kaushik Bagchi, Product Head Tel: 66552281 Mr. Ajay Thakur. Asst Manager Tel: 66977804 / 00 |
|
IndusInd Bank Ltd. |
57, Mumbai Samachar Marg, Fort, Mumbai - 400 001 |
Mr. Pradeep Bhave, VP & Branch Head Tel: 66347722 Mr. Yogesh Adke, Asst. Vice President Tel : 66366589 Fax: 66366590 |
|
Kotak Mahindra Bank Ltd. |
13th floor, Nariman Bhavan, 227, Nariman Point Mumbai 400 021 |
Mr. Prasad Ramaswamy, Associate VP -
Operations Tel: 66153065 Fax: 56563451 |
|
Standard Chartered Bank |
5th floor, Fort, Mumbai 400 001 |
Mr. Girish Bhatia, Associate Director Tel: 66314285 |
|
Union Bank of |
Capital Market Cell Mumbai Samachar Marg Branch, 66/80, Mumbai Samachar Marg Fort Mumbai 400 023 |
Mr. Girishchandra Kashyap, Sr Manager Tel : 22629335 Mr. R.S. Majithia, Asst. General Manager Tel: 22629303 Fax: 22642742 |
|
State Bank of |
Mumbai Main Branch 1st floor, International Banking Division, Mumbai Samachar Marg Mumbai 400 023 |
Mr. Doiphode, Asst. General Manager Tel: 22695272 Mr. A.B. Pote, Manager Tel: 22661765 |
Annexure 6.2
Format -Letter to be submitted by member to bank for
operation of 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 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 mentioned account number from time to time. 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 effective from the date of commencement of operation by NSCCL.
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
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 & 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 AND 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 AUTHORISED DEPOSITORY PARTICIPANTS/
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 Fixed Deposit Receipt
towards Security Deposit to the Custodian
Annexure-10.3a
Member Letter
To Date:
Name & Address of custodian (Cash Segment)
Dear Sir,
As per National Securities Clearing Corporation's (NSCCL) requirements 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. "Clearing 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
________ Clearing Member name and CM Code
Annexure-10.3b
Draft letter to be given by the bank issuing the
security deposit FDR to the custodian
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 Clearing Member's name)
We hereby 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 TM clearing member).
iii) Encashment whether premature or otherwise would not require any clearance from any other authority / person.
iv) We agree that on the encashment of FDR, the interest accrued will also be released to you.
v) We agree that the FDR will be renewed for such periods as you may instruct.
vi) The FDR is payable at Mumbai (In case FDR is issued from places
other than Mumbai,
Yours faithfully,
Authorised Signatory
Name:
Annexure-10.3 c
Format for submission of Fixed Deposit Receipt
towards Security Deposit to NSCCL
Member Lettter
To Date:
National Securities Clearing Corporation Ltd (Cash Segment)
Exchange Plaza
Bandra Kurla Complex
Bandra (E)
Mumbai-400 051
Dear Sir,
As per National Securities Clearing Corporation's (NSCCL) requirements 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.____________________ 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
________ Clearing Member name and –CM Code
Annexure-10.3d
Draft letter to be given by the bank issuing the
security deposit FDR to NSCCL
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 Clearing Member's name)
We hereby 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 TM clearing member).
iii) Encashment whether premature or otherwise would not require any clearance from any other authority / person.
iv) We agree that on the encashment of FDR, the interest accrued will also be released to you.
v) We agree that the FDR will be renewed for such periods as you may instruct.
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
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:
1.
Member code
stands for the trading member code
2.
CSH stands
for cash, BGN for bank guarantee, FDP for Fixed deposit receipt, SDP for
securities, NMF for non cash component mutual funds and CMF for cash component
mutual funds
3.
Instrument
ID stands for the NSCCL Ref no as is available in the latest MG05 report. For
eg the instrument id for NSCCL.Ref no
ABC/BG/39288 will be 39288
4.
Non
Applicable fields should be blank.
5. The return files giving the status of the acceptance/rejection of the release request will be available through the extranet at the following path Releases/Dnld. The file naming convention for the same will be MemberCode_C_RRR_DDMMYYYY_NN.csv
6. The details of the releases for the day will be available as an annexure to MG05 report.
Annexure-10.5
List of approved securities towards liquid assets
A. List of equity shares that will form part of the non-cash component of liquid assets - Haircut would be equivalent to the respective VaR of the security
|
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 |
ACE |
Action Construction Equipment Limited |
|
8 |
ADANIENT |
Adani Enterprises Limited |
|
9 |
ADHUNIK |
Adhunik Metaliks Limited |
|
10 |
ADLABSFILM |
Adlabs Films Limited |
|
11 |
AFTEK |
Aftek Limited |
|
12 |
AIAENG |
AIA Engineering Limited |
|
13 |
AIRDECCAN |
Deccan Aviation Limited |
|
14 |
AKRUTI |
Akruti City Limited |
|
15 |
ALBK |
Allahabad Bank |
|
16 |
ALEMBICLTD |
Alembic Limited |
|
17 |
ALLCARGO |
Allcargo Global Logistics Limited |
|
18 |
ALOKTEXT |
Alok Industries Limited |
|
19 |
AMARAJABAT |
Amara Raja Batteries Ltd |
|
20 |
AMBUJACEM |
Ambuja Cements Ltd |
|
21 |
AMTEKAUTO |
Amtek Auto Ltd |
|
22 |
AMTEKINDIA |
Amtek India Limited |
|
23 |
ANDHRABANK |
Andhra Bank |
|
24 |
ANDHRSUGAR |
The Andhra Sugars Ltd |
|
25 |
ANKURDRUGS |
Ankur Drugs And Pharma Limited |
|
26 |
ANSALINFRA |
Ansal Properties & Infrastructure Limited |
|
27 |
APIL |
Alstom Projects India Limited |
|
28 |
APOLLOHOSP |
Apollo Hospitals Enterprise Ltd |
|
29 |
APOLLOTYRE |
Apollo Tyres Ltd |
|
30 |
APTECHT |
Aptech Limited |
|
31 |
ARCHIDPLY |
Archidply Industries Limited |
|
32 |
AREVAT&D |
Areva T&D India Limited |
|
33 |
ARVIND |
Arvind Limited |
|
34 |
ASHAPURMIN |
Ashapura Minechem Ltd |
|
35 |
ASHOKLEY |
Ashok Leyland Ltd |
|
36 |
ASIANELEC |
Asian Electronics Ltd |
|
37 |
ASIANPAINT |
Asian Paints Limited |
|
38 |
ASTRAMICRO |
Astra Microwave Products Limited |
|
39 |
AUROPHARMA |
Aurobindo Pharma Ltd |
|
40 |
AVENTIS |
Aventis Pharma Limited |
|
41 |
AXISBANK |
Axis Bank Limited |
|
42 |
AZTECSOFT |
Aztecsoft Limited |
|
43 |
BAGFILMS |
B.A.G Films and Media Limited |
|
44 |
BAJAJ-AUTO |
Bajaj Auto Limited |
|
45 |
BAJAJFINSV |
Bajaj Finserv Limited |
|
46 |
BAJAJHIND |
Bajaj Hindusthan Ltd |
|
47 |
BAJAJHLDNG |
Bajaj Holdings & Investment Limited |
|
48 |
BALAJITELE |
Balaji Telefilms Ltd. |
|
49 |
BALLARPUR |
Ballarpur Industries Limited |
|
50 |
BALMLAWRIE |
Balmer Lawrie & Co. Ltd |
|
51 |
BALRAMCHIN |
Balrampur Chini Mills Ltd |
|
52 |
BANKBARODA |
Bank of |
|
53 |
BANKINDIA |
Bank of |
|
54 |
BANKRAJAS |
The Bank of Rajasthan Ltd |
|
55 |
BARTRONICS |
Bartronics India Limited |
|
56 |
BASF |
BASF India Ltd |
|
57 |
BATAINDIA |
Bata India Ltd |
|
58 |
BBL |
Bharat Bijlee Ltd. |
|
59 |
BEL |
Bharat Electronics Ltd |
|
60 |
BEML |
BEML Limited |
|
61 |
BERGEPAINT |
Berger Paints (I) Ltd |
|
62 |
BGRENERGY |
BGR Energy Systems Limited |
|
63 |
BHARATFORG |
Bharat Forge Ltd |
|
64 |
BHARTIARTL |
Bharti Airtel Limited |
|
65 |
BHARTISHIP |
Bharati Shipyard Limited |
|
66 |
BHEL |
Bharat Heavy Electricals Ltd |
|
67 |
BHUSANSTL |
Bhushan Steel Limited |
|
68 |
BINANICEM |
Binani Cement Limited |
|
69 |
BINDALAGRO |
Oswal Chemicals & Fertilizers Ltd. |
|
70 |
BIOCON |
Biocon Limited |
|
71 |
BIRLACORPN |
Birla Corporation Ltd |
|
72 |
BIRLACOT |
Birla Cotsyn ( |
|
73 |
BLUESTARCO |
Blue Star Limited |
|
74 |
BOC |
BOC India Limited |
|
75 |
BOMDYEING |
|
|
76 |
BONGAIREFN |
Bongaigaon Refinery & Petrochemicals Ltd |
|
77 |
BOSCHCHASY |
Bosch Chassis Systems India Ltd. |
|
78 |
BOSCHLTD |
Bosch Limited |
|
79 |
BPCL |
Bharat Petroleum Corpn. Ltd |
|
80 |
BRFL |
Bombay Rayon Fashions Limited |
|
81 |
BRIGADE |
Brigade Enterprises Limited |
|
82 |
BRITANNIA |
Britannia Industries Ltd |
|
83 |
BSELINFRA |
BSEL Infrastructure Realty Limited |
|
84 |
BURNPUR |
Burnpur Cement Limited |
|
85 |
CADILAHC |
Cadila Healthcare Limited |
|
86 |
CAIRN |
Cairn India Limited |
|
87 |
CANBK |
Canara Bank |
|
88 |
CASTROL |
Castrol India Ltd |
|
89 |
CEATLTD |
CEAT Limited |
|
90 |
CENTRALBK |
Central Bank of |
|
91 |
CENTURYTEX |
Century Textiles & Industries Ltd |
|
92 |
CESC |
CESC Ltd. |
|
93 |
CHAMBLFERT |
Chambal Fertilizers & Chemicals Ltd |
|
94 |
CHENNPETRO |
Chennai Petroleum Corporation Limited |
|
95 |
CIPLA |
Cipla Ltd. |
|
96 |
CMC |
CMC Ltd |
|
97 |
COLPAL |
Colgate Palmolive ( |
|
98 |
CONCOR |
Container Corporation of India Limited |
|
99 |
COREPROTEC |
Core Projects and Technologies Limited |
|
100 |
COROMNFERT |
Coromandel Fertilisers Ltd. |
|
101 |
CORPBANK |
Corporation Bank |
|
102 |
COSMOFILMS |
Cosmo Films Ltd |
|
103 |
CRISIL |
CRISIL Limited |
|
104 |
CROMPGREAV |
Crompton
Greaves Ltd |
|
105 |
CUB |
City Union Bank Ltd. |
|
106 |
CUMMINSIND |
Cummins India Ltd. |
|
107 |
DABUR |
Dabur India Ltd |
|
108 |
DABURPHARM |
Dabur Pharma Limited |
|
109 |
DCB |
Development Credit Bank Limited |
|
110 |
DCHL |
Deccan Chronicle Holdings Ltd. |
|
111 |
DCMSRMCONS |
DCM Shriram Consolidated Ltd |
|
112 |
DCW |
DCW Ltd |
|
113 |
DEEPAKFERT |
Deepak Fertilizers and Petrochemicals Corporation
Limited |
|
114 |
DENABANK |
Dena Bank |
|
115 |
DISHMAN |
Dishman Pharmaceuticals and Chemicals Limited |
|
116 |
DISHTV |
Dish TV India Limited |
|
117 |
DIVISLAB |
Divi's Laboratories Limited |
|
118 |
DLF |
DLF Limited |
|
119 |
DREDGECORP |
Dredging Corporation of India Limited |
|
120 |
DRREDDY |
Dr. Reddy's Laboratories Ltd. |
|
121 |
EDELWEISS |
Edelweiss Capital Limited |
|
122 |
EDUCOMP |
Educomp Solutions Limited |
|
123 |
EICHERMOT |
Eicher Motors Ltd |
|
124 |
EIDPARRY |
EID Parry India Ltd. |
|
125 |
EIHOTEL |
EIH Limited |
|
126 |
EKC |
Everest Kanto Cylinder Limited |
|
127 |
ELECON |
Elecon Engineering Co Ltd |
|
128 |
ELECTCAST |
Electrosteel Castings Ltd |
|
129 |
ENGINERSIN |
Engineers India Limited |
|
130 |
ERAINFRA |
Era Infra Engineering Limited |
|
131 |
ESCORTS |
Escorts Ltd |
|
132 |
ESSAROIL |
Essar Oil Limited |
|
133 |
EVERONN |
Everonn Systems India Limited |
|
134 |
EXIDEIND |
Exide Industries Ltd. |
|
135 |
FCH |
Future Capital Holdings Limited |
|
136 |
FDC |
FDC Ltd. |
|
137 |
FEDERALBNK |
The Federal Bank
Ltd |
|
138 |
FINANTECH |
Financial Technologies ( |
|
139 |
FINCABLES |
Finolex Cables Ltd. |
|
140 |
FINPIPE |
Finolex Industries Ltd. |
|
141 |
FORTIS |
Fortis Healthcare Limited |
|
142 |
FSL |
Firstsource Solutions Limited |
|
143 |
GAIL |
GAIL ( |
|
144 |
GAMMONIND |
Gammon India Ltd. |
|
145 |
GATI |
GATI Limited |
|
146 |
GDL |
Gateway Distriparks Limited |
|
147 |
GEOINFO |
Geodesic Information Systems Limited |
|
148 |
GEOJIT |
Geojit Financial Services Limited |
|
149 |
GEOMETRIC |
Geometric Limited |
|
150 |
GESHIP |
The Great Eastern Shipping Co. Limited |
|
151 |
GHCL |
GHCL Limited |
|
152 |
GICHSGFIN |
GIC Housing Finance Ltd |
|
153 |
GIPCL |
Gujarat Industries Power Co. Ltd |
|
154 |
GITANJALI |
Gitanjali Gems Limited |
|
155 |
GLAXO |
GlaxoSmithKline Pharmaceuticals Limited |
|
156 |
GLENMARK |
Glenmark Pharmaceuticals Ltd. |
|
157 |
GMDCLTD |
Gujarat Mineral Development Corporation Limited |
|
158 |
GMRINFRA |
GMR Infrastructure Limited |
|
159 |
GNFC |
Gujarat Narmada Valley Fertilizer Co. Ltd. |
|
160 |
GODREJCP |
Godrej Consumer Products Limited |
|
161 |
GODREJIND |
Godrej Industries Ltd. |
|
162 |
GOKUL |
Gokul Refoils and Solvent Limited |
|
163 |
GPIL |
Godawari Power And Ispat limited |
|
164 |
GRAPHITE |
Graphite India Limited |
|
165 |
GRASIM |
Grasim Industries Ltd. |
|
166 |
GSFC |
Gujarat State Fertilizers & Chemicals Ltd. |
|
167 |
GSPL |
Gujarat State Petronet Limited |
|
168 |
GSSAMERICA |
GSS America Infotech Limited |
|
169 |
GTL |
GTL Limited |
|
170 |
GTLINFRA |
GTL Infrastructure Limited |
|
171 |
GTOFFSHORE |
Great Offshore Limited |
|
172 |
GUJALKALI |
|
|
173 |
GUJFLUORO |
Gujarat Fluorochemicals Ltd |
|
174 |
GUJNRECOKE |
Gujarat NRE Coke Ltd. |
|
175 |
GUJRATGAS |
Gujarat Gas Co. Ltd |
|
176 |
GUJSIDHCEM |
Gujarat Sidhee Cements Ltd |
|
177 |
GVKPIL |
GVK Power & Infrastructure Limited |
|
178 |
GWALCHEM |
Gwalior Chemical Industries Limited |
|
179 |
HANUNG |
Hanung Toys and Textiles Limited |
|
180 |
HARRMALAYA |
Harrisons
Malayalam Ltd |
|
181 |
HAVELLS |
Havells India Limited |
|
182 |
HCC |
Hindustan Construction Co. Ltd |
|
183 |
HCL-INSYS |
HCL Infosystems Ltd |
|
184 |
HCLTECH |
HCL Technologies Ltd |
|
185 |
HDFC |
Housing Development Finance Corporation Ltd. |
|
186 |
HDFCBANK |
HDFC Bank Ltd |
|
187 |
HDIL |
Housing Development and Infrastructure Limited |
|
188 |
HEG |
HEG Ltd |
|
189 |
HELIOSMATH |
Helios And Matheson Information Technology Limited |
|
190 |
HEROHONDA |
Hero Honda Motors Ltd. |
|
191 |
HEXAWARE |
Hexaware Technologies Limited |
|
192 |
HIMACHLFUT |
Himachal Futuristic Communications Limited |
|
193 |
HINDALCO |
Hindalco Industries Ltd. |
|
194 |
HINDMOTOR |
Hindustan Motors Ltd. |
|
195 |
HINDOILEXP |
Hindustan Oil Exploration Co. Ltd |
|
196 |
HINDPETRO |
Hindustan Petroleum Corporation Ltd. |
|
197 |
HINDUJAVEN |
Hinduja Ventures Limited |
|
198 |
HINDUNILVR |
Hindustan Unilever Limited |
|
199 |
HINDZINC |
Hindustan Zinc Ltd. |
|
200 |
HOTELEELA |
Hotel Leela Venture Ltd. |
|
201 |
HYDRBADIND |
Hyderabad Industries Ltd |
|
202 |
I-FLEX |
I-Flex Solutions Limited |
|
203 |
IBN18 |
ibn18 Broadcast Limited |
|
204 |
IBREALEST |
Indiabulls Real Estate Limited |
|
205 |
IBSEC |
Indiabulls Securities Limited |
|
206 |
ICICIBANK |
ICICI Bank Ltd |
|
207 |
ICRA |
ICRA Limited |
|
208 |
ICSA |
ICSA ( |
|
209 |
IDBI |
IDBI Bank Limited |
|
210 |
IDEA |
Idea Cellular Limited |
|
211 |
IDFC |
Infrastructure Development Finance Company Limited |
|
212 |
IFCI |
IFCI Limited |
|
213 |
IGL |
Indraprastha Gas Limited |
|
214 |
INDHOTEL |
The Indian Hotels Company Limited |
|
215 |
INDIABULLS |
Indiabulls Financial Services Limited |
|
216 |
INDIACEM |
The India Cements Limited |
|
217 |
INDIAGLYCO |
India Glycols Ltd |
|
218 |
INDIAINFO |
India Infoline Limited |
|
219 |
INDIANB |
Indian Bank |
|
220 |
INDOTECH |
Indo Tech Transformers Limited |
|
221 |
INDUSINDBK |
IndusInd Bank Limited |
|
222 |
INFOSYSTCH |
Infosys Technologies Ltd. |
|
223 |
INFOTECENT |
Infotech Enterprises Ltd |
|
224 |
INGERRAND |
Ingersoll Rand ( |
|
225 |
INGVYSYABK |
ING Vysya Bank Limited |
|
226 |
INOXLEISUR |
INOX Leisure Limited |
|
227 |
INVSTSMART |
IL&FS Investsmart Limited |
|
228 |
IOB |
Indian Overseas Bank |
|
229 |
IOC |
Indian Oil Corporation Ltd |
|
230 |
IPCALAB |
IPCA Laboratories Ltd. |
|
231 |
IRB |
IRB Infrastructure Developers Limited |
|
232 |
ISPATIND |
Ispat Industries Limited |
|
233 |
ITC |
ITC Ltd. |
|
234 |
IVRCLINFRA |
IVRCL Infrastructures & Projects Ltd. |
|
235 |
IVRPRIME |
IVR Prime Urban Developers Limited |
|
236 |
J&KBANK |
The Jammu & Kashmir Bank Ltd. |
|
237 |
JAYSREETEA |
Jayshree Tea & Industries Ltd |
|
238 |
JBCHEPHARM |
JB Chemicals & Pharmaceuticals Ltd. |
|
239 |
JETAIRWAYS |
Jet Airways ( |
|
240 |
JINDALSAW |
Jindal Saw Limited |
|
241 |
JINDALSTEL |
Jindal Steel & Power Ltd. |
|
242 |
JINDRILL |
Jindal Drilling And Industries Limited |
|
243 |
JISLJALEQS |
Jain Irrigation Systems Limited |
|
244 |
JKCEMENT |
JK Cement Limited |
|
245 |
JKIL |
J.Kumar Infraprojects Limited |
|
246 |
JKLAKSHMI |
JK Lakshmi Cement Limited |
|
247 |
JKTYRE |
JK Tyre & Industries Limited |
|
248 |
JPASSOCIAT |
Jaiprakash Associates Limited |
|
249 |
JPHYDRO |
Jaiprakash Hydro-Power Limited |
|
250 |
JSTAINLESS |
Jindal Stainless Limited |
|
251 |
JSWSTEEL |
JSW Steel Limited |
|
252 |
JUBILANT |
Jubilant Organosys Limited |
|
253 |
JYOTISTRUC |
Jyoti Structures Ltd |
|
254 |
KALPATPOWR |
Kalpataru Power Transmission Ltd |
|
255 |
KARURVYSYA |
Karur Vysya Bank Ltd |
|
256 |
KEC |
KEC International Limited |
|
257 |
KEI |
KEI Industries Limited |
|
258 |
KESORAMIND |
Kesoram Industries Ltd. |
|
259 |
KIRIDYES |
Kiri Dyes and Chemicals Limited |
|
260 |
KIRLOSOIL |
Kirloskar Oil Engines Ltd. |
|
261 |
KLGSYSTEL |
KLG Systel Ltd. |
|
262 |
KOHINOOR |
Kohinoor Foods Limited |
|
263 |
KOLTEPATIL |
Kolte - Patil Developers Limited |
|
264 |
KOTAKBANK |
Kotak Mahindra Bank Limited |
|
265 |
KOUTONS |
Koutons Retail India Limited |
|
266 |
KPIT |
KPIT Cummins Infosystems Limited |
|
267 |
KSK |
KSK Energy Ventures Limited |
|
268 |
KSOILS |
K S Oils Limited |
|
269 |
KTKBANK |
The Karnataka Bank Limited |
|
270 |
LAKSHVILAS |
Lakshmi Vilas Bank Ltd |
|
271 |
LAXMIMACH |
Lakshmi Machine Works Ltd. |
|
272 |
LICHSGFIN |
LIC Housing Finance Ltd |
|
273 |
LITL |
Lanco Infratech Limited |
|
274 |
LLOYDELENG |
Lloyd Electric & Engineering Ltd |
|
275 |
LML |
LML Ltd. |
|
276 |
LOTUSEYE |
Lotus Eye Care Hospital Limited |
|
277 |
LPDC |
Landmark Property Development Company Limited |
|
278 |
LT |
Larsen & Toubro Limited |
|
279 |
LUPIN |
Lupin Limited |
|
280 |
M&M |
Mahindra & Mahindra Ltd. |
|
281 |
M&MFIN |
Mahindra & Mahindra Financial Services Limited |
|
282 |
MADRASCEM |
Madras Cements Ltd. |
|
283 |
MAHABANK |
Bank of |
|
284 |
MAHLIFE |
Mahindra Lifespace Developers Limited |
|
285 |
MAHSEAMLES |
|
|
286 |
MANAKSIA |
Manaksia Limited |
|
287 |
MANGLMCEM |
Mangalam Cement Ltd |
|
288 |
MARICO |
Marico Limited |
|
289 |
MARUTI |
Maruti Suzuki India Limited |
|
290 |
MASTEK |
Mastek Ltd |
|
291 |
MATRIXLABS |
Matrix Laboratories Limited |
|
292 |
MAX |
Max India Ltd |
|
293 |
MAYTASINFR |
Maytas Infra Limited |
|
294 |
MCDOWELL-N |
United Spirits Limited |
|
295 |
MCLEODRUSS |
Mcleod Russel India Limited |
|
296 |
MEGH |
Meghmani Organics Limited |
|
297 |
MERCK |
Merck Limited |
|
298 |
MIC |
MIC Electronics Limited |
|
299 |
MICROTECH |
Micro Technologies ( |
|
300 |
MINDTREE |
MindTree Limited |
|
301 |
MIRCELECTR |
MIRC Electronics Ltd. |
|
302 |
MLL |
Mercator Lines Limited |
|
303 |
MONNETISPA |
Monnet Ispat Ltd |
|
304 |
MONSANTO |
Monsanto India Limited |
|
305 |
MOREPENLAB |
Morepen Laboratories Ltd |
|
306 |
MOSERBAER |
Moser-Baer (I) Ltd |
|
307 |
MOTILALOFS |
Motilal Oswal Financial Services Limited |
|
308 |
MPHASIS |
MphasiS Limited |
|
309 |
MRF |
MRF Ltd. |
|
310 |
MRPL |
Mangalore Refinery and Petrochemicals Ltd. |
|
311 |
MTNL |
Mahanagar Telephone Nigam Ltd. |
|
312 |
MUKANDLTD |
Mukand Limited |
|
313 |
MUNDRAPORT |
|
|
314 |
MVL |
MVL Limited |
|
315 |
MYSORECEM |
Mysore Cements Ltd |
|
316 |
NAGARCONST |
Nagarjuna Construction Co. Ltd |
|
317 |
NAGARFERT |
Nagarjuna Fertilizer & Chemicals Ltd. |
|
318 |
NATCOPHARM |
Natco Pharma Limited |
|
319 |
NATIONALUM |
National Aluminium Company Limited |
|
320 |
NAUKRI |
Info Edge ( |
|
321 |
NBVENTURES |
Nava Bharat Ventures Limited |
|
322 |
NDTV |
New Delhi Television Limited |
|
323 |
NECLIFE |
Nectar Lifesciences Limited |
|
324 |
NETWORK18 |
Network 18 Fincap Limited |
|
325 |
NEYVELILIG |
Neyveli Lignite Corporation Limited |
|
326 |
NIITLTD |
NIIT Limited |
|
327 |
NIITTECH |
NIIT Technologies Limited |
|
328 |
NIRMA |
Nirma Ltd. |
|
329 |
NITINFIRE |
Nitin Fire Protection Industries Limited |
|
330 |
NOCIL |
NOCIL Limited |
|
331 |
NOIDATOLL |
Noida Toll Bridge Company Ltd |
|
332 |
NTPC |
NTPC Limited |
|
333 |
NUCLEUS |
Nucleus Software Exports Limited |
|
334 |
OCTAV |
Octav Investments Limited |
|
335 |
OMAXE |
Omaxe Limited |
|
336 |
ONGC |
Oil & Natural Gas Corpn Ltd |
|
337 |
ONMOBILE |
OnMobile Global Limited |
|
338 |
OPTOCIRCUI |
Opto Circuits ( |
|
339 |
ORBITCORP |
Orbit Corporation Limited |
|
340 |
ORCHIDCHEM |
Orchid Chemicals & Pharmaceuticals Ltd |
|
341 |
ORIENTBANK |
Oriental Bank of Commerce |
|
342 |
ORIENTPPR |
Orient Paper & Industries Ltd |
|
343 |
PANACEABIO |
Panacea Biotec Ltd. |
|
344 |
PANTALOONR |
Pantaloon Retail ( |
|
345 |
PARSVNATH |
Parsvnath Developers Limited |
|
346 |
PATELENG |
Patel Engineering Limited |
|
347 |
PATNI |
Patni Computer Systems Limited |
|
348 |
PENINLAND |
Peninsula Land Limited |
|
349 |
PETRONET |
Petronet LNG Limited |
|
350 |
PFC |
Power Finance Corporation Limited |
|
351 |
PFIZER |
Pfizer Ltd. |
|
352 |
PGHH |
Procter & Gamble Hygiene and Health Care Limited |
|
353 |
PIDILITIND |
Pidilite Industries Ltd |
|
354 |
PIRHEALTH |
Piramal Healthcare Limited |
|
355 |
PIRLIFE |
Piramal Life Sciences Limited |
|
356 |
PLETHICO |
Plethico Pharmaceuticals Limited |
|
357 |
PNB |
Punjab National Bank |
|
358 |
POLARIS |
Polaris Software Lab Limited |
|
359 |
POWERGRID |
Power Grid Corporation of India Limited |
|
360 |
PRAJIND |
Praj Industries Ltd |
|
361 |
PRAKASH |
Prakash Industries Ltd |
|
362 |
PRISMCEM |
Prism Cement Limited |
|
363 |
PRITHVI |
Prithvi Information Solutions Limited |
|
364 |
PROVOGUE |
Provogue ( |
|
365 |
PSL |
PSL Limited |
|
366 |
PSTL |
Pyramid Saimira Theatre Limited |
|
367 |
PTC |
PTC India Limited |
|
368 |
PUNJABTRAC |
Punjab Tractors Ltd. |
|
369 |
PUNJLLOYD |
Punj Lloyd Limited |
|
370 |
PURVA |
Puravankara Projects Limited |
|
371 |
PVR |
PVR Limited |
|
372 |
RADICO |
Radico Khaitan Limited |
|
373 |
RAINCOM |
Rain Commodities
Limited |
|
374 |
RAJESHEXPO |
Rajesh Exports Ltd. |
|
375 |
RALLIS |
Rallis India Ltd. |
|
376 |
RANBAXY |
Ranbaxy Laboratories Ltd |
|
377 |
RAYMOND |
Raymond Ltd. |
|
378 |
RCOM |
Reliance Communications Limited |
|
379 |
RECLTD |
Rural Electrification Corporation Limited |
|
380 |
REDINGTON |
Redington ( |
|
381 |
RELCAPITAL |
Reliance Capital Limited |
|
382 |
RELIANCE |
Reliance Industries Ltd |
|
383 |
RELIGARE |
Religare Enterprises Limited |
|
384 |
RELINFRA |
Reliance Infrastructure Limited |
|
385 |
RENUKA |
Shree Renuka Sugars Limited |
|
386 |
RNRL |
Reliance Natural Resources Limited |
|
387 |
ROLTA |
Rolta India Ltd. |
|
388 |
RPL |
Reliance Petroleum Limited |
|
389 |
RPOWER |
Reliance Power Limited |
|
390 |
RUCHISOYA |
Ruchi Soya Industries Ltd. |
|
391 |
SAIL |
Steel Authority of India Ltd. |
|
392 |
SASKEN |
Sasken Communication Technologies Limited |
|
393 |
SATYAMCOMP |
Satyam Computer Services Ltd |
|
394 |
SBIN |
State Bank of |
|
395 |
SCI |
Shipping Corporation Of India Ltd. |
|
396 |
SEJALGLASS |
Sejal Architectural Glass Limited |
|
397 |
SESAGOA |
Sesa Goa Ltd. |
|
398 |
SHANTIGEAR |
Shanthi Gears Ltd |
|
399 |
SHASUNCHEM |
Shasun Chemicals and Drugs Ltd. |
|
400 |
SHIV-VANI |
Shiv-Vani Oil & Gas Exploration Services Limited |
|
401 |
SHLAKSHMI |
Shri Lakshmi Cotsyn Limited |
|
402 |
SHREECEM |
Shree Cements Ltd |
|
403 |
SIEMENS |
Siemens Ltd |
|
404 |
SINTEX |
Sintex Industries Ltd. |
|
405 |
SITASHREE |
Sita Shree Food Products Limited |
|
406 |
SKFINDIA |
SKF India Limited |
|
407 |
SKUMARSYNF |
S. Kumars Nationwide Ltd |
|
408 |
SOBHA |
Sobha Developers Limited |
|
409 |
SONATSOFTW |
Sonata Software Ltd |
|
410 |
SOUTHBANK |
The South Indian Bank Ltd. |
|
411 |
SPARC |
Sun Pharma Advanced Research Company Limited |
|
412 |
SPICETELE |
Spice Communications Limited |
|
413 |
SREINTFIN |
SREI Infrastructure Finance Limited |
|
414 |
SRF |
SRF Ltd. |
|
415 |
SRTRANSFIN |
Shriram Transport Finance Co. Ltd. |
|
416 |
STAR |
Strides Arcolab Limited |
|
417 |
STER |
Sterlite Industries ( |
|
418 |
STERLINBIO |
Sterling Biotech Limited |
|
419 |
STRTECH |
Sterlite Technologies Limited |
|
420 |
SUBEX |
Subex Limited |
|
421 |
SUNDARMFIN |
Sundaram Finance Ltd. |
|
422 |
SUNDRMFAST |
Sundram Fasteners Ltd |
|
423 |
SUNFLAG |
Sunflag Iron And Steel Company Limited |
|
424 |
SUNILHITEC |
Sunil Hitech Engr. Ltd |
|
425 |
SUNPHARMA |
Sun Pharmaceuticals Industries Ltd |
|
426 |
SUNTV |
Sun TV Network Limited |
|
427 |
SURAJDIAMN |
Su-Raj Diamonds and Jewellery Limited |
|
428 |
SUZLON |
Suzlon Energy Limited |
|
429 |
SYNDIBANK |
Syndicate Bank |
|
430 |
TAJGVK |
Taj GVK Hotels & Resorts Limited |
|
431 |
TANLA |
Tanla Solutions Limited |
|
432 |
TATACHEM |
Tata Chemicals Ltd. |
|
433 |
TATACOMM |
Tata Communications Limited |
|
434 |
TATAELXSI |
Tata Elxsi ( |
|
435 |
TATAINVEST |
Tata Investment Corporation Ltd. |
|
436 |
TATAMETALI |
Tata Metaliks Ltd |
|
437 |
TATAMOTORS |
Tata Motors Limited |
|
438 |
TATAPOWER |
Tata Power Co. Ltd. |
|
439 |
TATASPONGE |
Tata Sponge Iron Ltd. |
|
440 |
TATASTEEL |
Tata Steel Limited |
|
441 |
TATATEA |
Tata Tea Ltd |
|
442 |
TCS |
Tata Consultancy Services Limited |
|
443 |
TECHM |
Tech Mahindra Limited |
|
444 |
TELEDATAGL |
Teledata Informatics Limited |
|
445 |
TEXMACOLTD |
Texmaco Limited |
|
446 |
THERMAX |
Thermax Ltd |
|
447 |
THOMASCOOK |
Thomas Cook ( |
|
448 |
TITAN |
Titan Industries Ltd. |
|
449 |
TNPL |
Tamil Nadu Newsprint & Papers Ltd |
|
450 |
TORNTPHARM |
Torrent Pharmaceuticals Ltd. |
|
451 |
TORNTPOWER |
Torrent Power Limited |
|
452 |
|
Trent Ltd. |
|
453 |
TRIL |
Transformers And Rectifiers ( |
|
454 |
TRIVENI |
Triveni Engineering & Industries Limited |
|
455 |
TTML |
Tata Teleservices ( |
|
456 |
TULIP |
Tulip Telecom Limited |
|
457 |
TULSI |
Tulsi Extrusions Limited |
|
458 |
TV-18 |
Television Eighteen India Ltd. |
|
459 |
TVSMOTOR |
TVS Motor Company Limited |
|
460 |
TVTODAY |
TV Today Network Limited |
|
461 |
TWL |
Titagarh Wagons Limited |
|
462 |
UCOBANK |
UCO Bank |
|
463 |
ULTRACEMCO |
UltraTech Cement Limited |
|
464 |
UNICHEMLAB |
Unichem Laboratories Ltd |
|
465 |
UNIONBANK |
Union Bank of |
|
466 |
UNIPHOS |
United Phosphorous Limited |
|
467 |
UNITECH |
Unitech Ltd |
|
468 |
UNITY |
Unity Infraprojects Limited |
|
469 |
USHAMART |
Usha Martin Limited |
|
470 |
UTTAMSTL |
Uttam Galva Steels Limited |
|
471 |
UTVSOF |
UTV Software Communications Limited |
|
472 |
VAKRANSOFT |
Vakrangee Softwares Limited |
|
473 |
VARUNSHIP |
Varun Shipping Co. Ltd. |
|
474 |
VGUARD |
V-Guard Industries Limited |
|
475 |
VIDEOIND |
Videocon Industries Limited |
|
476 |
VIJAYABANK |
Vijaya Bank |
|
477 |
VITLINFO |
Vishal Information Technologies Limited |
|
478 |
VOLTAMP |
Voltamp Transformers Limited |
|
479 |
|
Voltas Ltd. |
|
480 |
WELGUJ |
Welspun Gujarat Stahl Rohren Limited |
|
481 |
WIPRO |
Wipro Ltd |
|
482 |
WOCKPHARMA |
Wockhardt Limited |
|
483 |
WWIL |
Wire and Wireless ( |
|
484 |
WYETH |
Wyeth Limited |
|
485 |
XLTL |
XL Telecom Limited |
|
486 |
YESBANK |
Yes Bank Limited |
|
487 |
ZEEL |
Zee Entertainment Enterprises Ltd |
|
488 |
ZEENEWS |
Zee News Limited |
|
489 |
ZENSARTECH |
Zensar Technologies Limited |
|
490 |
ZUARIAGRO |
Zuari Industries Ltd. |
|
491 |
ZYLOG |
Zylog Systems Limited |
B. Units of mutual fund schemes that will form part of the non-cash component of liquid assets - Haircut would be equivalent to the respective VaR of the security
|
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 |
MORGANSTAN |
Morgan Stanley |
|
5 |
NIFTYBEES |
Benchmark Mutual Fund |
|
6 |
PSUBNKBEES |
Benchmark Mutual Fund - PSU Bank Benchmark Exchange
Traded Scheme |
|
7 |
RELGOLD |
Reliance Mutual Fund - Gold Exchange Traded Fund |
|
8 |
UTISUNDER |
UTI Mutual Fund – Sunder |
C.
Units of mutual fund schemes that will form part of the cash
component of liquid assets
|
Sr.No. |
Symbol |
Security Name |
Applicable Haircut |
|
1 |
LIQUIDBEES |
Benchmark Asset Management Company Private
Limited |
0.1 |
Annexure-10.6
DEED OF PLEDGE FOR CLEARING MEMBERS FOR SECURITY
DEPOSITS
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, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E) Mumbai – 400051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
The Clearing Member is admitted to the Clearing Membership of NSCCL.
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.
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.
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:
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” and which are described in the Schedule annexed hereto and which Said Securities shall include all the securities deposited from time to time in addition, substitution or replacement thereof) 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
DEED OF PLEDGE FOR NON-CLEARING MEMBERS FOR SECURITY
DEPOSITS
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, C-1 Block G Bandra Kurla Complex, Bandra (E), Mumbai – 400051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
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.
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.
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.
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.
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:
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” and which are described in the Schedule annexed hereto and which Said Securities shall include all the securities deposited from time to time in addition, substitution or replacement thereof) 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 Fixed
Deposits towards Margin Deposit
Annexure-10.7a
Member Letter
FORMAT FOR SUBMISSION OF
FIXED DEPOSIT RECEIPT TOWARDS MARGIN DEPOSIT TO THE CUSTODIAN
Date:
(To be typed on member's letter head)
To
Name & Address of Custodian (Cash 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 A/c. (Clearing 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
________
Clearing Member name and Code
FORMAT FOR SUBMISSION OF FIXED DEPOSIT RECEIPT TOWARDS
MARGIN DEPOSIT TO CLEARING CORPORATION
To
National Securities Clearing Corporation Ltd (Cash Segment)
Exchange Plaza
Bandra Kurla Complex
Bandra (E)
Mumbai-400 051
Dear Sir,
As per National Securities Clearing Corporation's (NSCCL) requirements 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.____________________ 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
________
Clearing Member name and Code
Annexure-10.7b
Bank Letter
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 (Clearing member's name)
We hereby confirm and agree 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 clearing 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.
FORMAT OF LETTER TO BE
GIVEN BY THE BANK ISSUING THE MARGIN DEPOSIT FDR TO THE CLEARING CORPORATION
(Typed on the letterhead of the bank)
Date:
To
National Securities Clearing Corporation Ltd
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 clearing
member’s name.
We hereby 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 clearing member).
iii) Encashment whether premature or otherwise would not require any clearance from any other authority / person.
iv) We agree that on encashment of FDR, the interest accrued will also be released to you.
v) We agree that the FDR will be renewed for such periods as per the instructions of the Member / Custodian / Clearing Corporation.
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
Format of Bank Guarantees
BG NO: __________________
Date :
__________________
National Securities Clearing Corporation Ltd.
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:
1) The above printed format is required to be used.
2) Strike out / delete Security Deposit or Margin deposit whichever is not applicable in clause b
3) In case of margin deposit bank guarantee strike out / delete “of a value not less than Rs. _______” in clause b
4) 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
5) 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 stamp of the bank.
6) 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-10.9
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 Electronic Member Interface Application. 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
Fixed Deposits
Annexure-10.11a
Bank Letters - Auto renewal of Fixed Deposits -
where there is change in FDR number
To Date:
National Securities Clearing
Corporation Ltd
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 TM clearing member's name.
Details are as under.
|
FDR
No |
Issue
Date |
Amount |
Maturity
Date |
|
|
|
|
|
The above FDR has been renewed for
further period of _____months under the autorenewal facility on the request of
the TM. Details are as follows.
|
New
FDR No |
Issue
Date |
New
Maturity Date |
Amount |
|
|
|
|
|
We hereby 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 TM clearing member).
iii) Encashment
whether premature or otherwise would not require any clearance from any other
authority / person.
iv) We agree
that on encashment of FDR, the interest accrued will also be released to you.
v) We agree that the FDR will be renewed
for such periods as per the instructions of the Member / Custodian / Clearing
Corporation.
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 Fixed Deposits -
where there is no change in FDR number
To Date:
National
Securities Clearing Corporation Ltd
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 (TM clearing
member's name). Details are as under.
|
FDR
No |
Issue
Date |
Amount |
Maturity
Date |
|
|
|
|
|
The above FDR has been renewed for
further period of _____months under the autorenewal facility on the request of
the Clearing Member. Details are as follows.
|
Renewal
Date |
Amount |
New
Maturity Date |
|
|
|
|
We hereby
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 clearing member).
iii) Encashment whether premature or
otherwise would not require any clearance from any other authority / person.
iv) We agree that on encashment of FDR, the
interest accrued will also be released to you.
v) We agree that the FDR will be renewed
for such periods as per the instructions of the Member / Custodian / Clearing
Corporation
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 Renewal of Bank Guarantee
Date: ___________
To,
National Securities Clearing Corporation Ltd.
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 10.13
DEED OF PLEDGE FOR CLEARING MEMBERS FOR MARGIN
DEPOSITS
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, Plot C/1, G Block, Bandra Kurla Complex, Bandra (E) Mumbai 400051(hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
The Clearing Member is admitted to the Clearing Membership of NSCCL.
One of the requirement of the Clearing Membership is that the Clearing Member if desirous of availing additional exposure, shall maintain with NSCCL additional base capital 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.
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.
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:
In consideration of NSCCL having agreed to accept approved dematerialised securities as additional base capital to an extent of Rs._________ /- (Rupees ___________________only), the Clearing Member hereby pledges securities (hereinafter referred to as “Said Securities” and which are described in the Schedule annexed hereto and which Said Securities shall include all the securities deposited from time to time in addition, substitution or replacement thereof) 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.
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.
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.
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.
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 additional base capital, either in their existing form or as modified/changed/altered /amended from time to time pursuant to requirement / compliance of Clearing Membership.
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 additional base capital 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.
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.
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.
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.
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.
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.
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.
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
DEED OF PLEDGE FOR NON-CLEARING MEMBERS FOR MARGIN
DEPOSITS
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, Plot C/1, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).
WHEREAS
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.
One of the requirement of the Clearing Membership is that the Clearing Member if desirous of availing additional exposure, shall maintain with NSCCL additional base capital 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.
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 .
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 additional base capital as aforesaid.
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:
In consideration of the NSCCL having agreed to accept approved dematerialised securities as additional base capital to an extent of Rs._______ /- (Rupees ____________________ only), the Pledgor hereby pledges securities (hereinafter referred to as “Said Securities” and which are described in the Schedule annexed hereto and which Said Securities shall include all the securities deposited from time to time in addition, substitution or replacement thereof) 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.
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.
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.
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.
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 additional base capital, for its Clearing members.
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 additional base capital 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.
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.
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.
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.
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.
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.
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 casue 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.
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-10.14
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)
Annexure-10.15
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
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 11.1
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 11.2
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 11.3
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 11.4
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 11.5
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 |
|
|
1. |
Name of the Member |
|
|
2. |
5 digit Trading Member Code |
|
|
3. |
SEBI Registration Number |
|
|
4. |
Address (for Communication) |
|
|
5. |
City |
|
|
6. |
State |
|
|
7. |
Country |
|
|
8. |
Pin code |
|
|
9. |
CDSL Clearing Account No. |
|
|
10. |
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 11.6
Annexure 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 |
|
1.
|
Record Type |
CHAR(2) |
Mandatory |
Value = 01 |
|
2.
|
File Type |
CHAR(7) |
Mandatory |
Value = CLNTEPF |
|
3.
|
Member Code |
CHAR(5) |
Mandatory |
Member code for which file
generated/received |
|
4.
|
Batch Date |
CHAR(8) |
Mandatory |
Format : YYYYMMDD Should be same as that in the file
name. |
|
5.
|
Batch number |
Number(2) |
Mandatory |
The batch number of the file sent. |
|
6.
|
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 |
|
7.
|
Settlement No |
CHAR(7) |
Mandatory |
Settlement number (e.g “2008001”) |
|
8.
|
Number of records |
Number(7) |
Mandatory |
Total number of records in the
file |
|
9.
|
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
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 - 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
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 :
1. the rubber stamp impression of ____________________ ______________________________ (member name) appearing on the reverse of the transfer deed bearing the following certificate & distinctive nos. is fake/forged.
2. we have not introduced the shares bearing the following certificate & distinctive nos. on the Exchange.
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
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
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
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:
________________________________
________________________________________