DOWNLOAD REF. NO. NSE/CMPT/11276

NATIONAL SECURITIES CLEARING CORPORATION LIMITED

FUTURES & OPTIONS SEGMENT

Circular No. NSCC/F&O/C&S/883 September 10, 2008

In pursuance of Regulations of the Futures & Options Segment of NSCCL, and in replacement of all earlier circulars issued to the members, members of the F&O segment are hereby notified the following :

Item 1

DEALS

Item 2

SETTLEMENT OBLIGATIONS

Item 3

SETTLEMENT SCHEDULE

Item 4

SETTLEMENT PRICE

Item 5

SETTLEMENT PROCEDURE

Item 6

SECURITIES TRANSACTION TAX

Item 7

CLEARING BANK

Item 8

TOTAL LIQUID ASSETS

Item 9

MARGINS

Item 10

POSITION LIMITS

Item 11

PROCEDURE FOR FOREIGN INSTITUTIONAL INVESTOR, MUTUAL FUND AND NRIs

Item 12

CLOSING OUT

Item 13

SETTLEMENT FUND

Item 14

CLIENT MARGIN REPORTING

Item 15

VIOLATIONS & PENALTY

Item 16

ADJUSTMENTS FOR CORPORATE ACTIONS

Item 17

CONSOLIDATED LIST OF REPORTS

Item 18

LIST OF ANNEXURES

For National Securities Clearing Corporation Limited

R Sundararaman

Senior Vice President

Item 1

DEALS

In pursuance of Byelaw 2, 3 and 4 of Part A of Chapter VI of the Byelaws and Chapter 3 of the Regulations, the following deals are eligible to be admitted on the Futures and Options Segment:

1.1 Admission and Exclusion of Deals

Deals executed on the Futures and Options Segment of National Stock Exchange are eligible to be cleared and settled through Clearing Corporation in the relevant sub-segment of its Futures and Options Segment unless specifically deferred or not allowed to, or rejected from admission by the relevant authority, and shall be called ‘Admitted Deals’.

Item 2

SETTLEMENT OBLIGATIONS

In pursuance of Byelaw 9 of Part B of Chapter VI of the Byelaws and Regulation 3.3 of the Regulations, the procedure for clearing and settlement of deals and determination of Settlement Obligations are specified as under:

2.1 Settlement of Admitted Deals

Admitted deals executed on a trading day, shall be cleared on a netted basis, by the Clearing Corporation as prescribed under the relevant Regulation. Subject to the above, settlement obligations for all clearing members shall arise.

The clearing members shall be responsible for all obligations arising out of such trades including the payment of margins, penalties, any other levies and settlement of obligations of the trades entered by them as trading members and also of those trading members and custodial participants, if any, for whom they have undertaken to settle as a clearing member.

Where the clearing member is not a trading member of the Exchange then the trades of those trading members and custodial participants of the Exchange for whom the clearing member has undertaken to settle shall be considered for determining the obligations as a clearing member.

2.2 Custodial Participant

Custodial participants are those constituents who are eligible for trading through trading members and clearing and settling deals through clearing members. Such custodial participants shall register themselves with the Clearing Corporation through their clearing members. The format of agreement to be executed between the clearing members and custodial participants is enclosed as Annexure 1.

2.3 Confirmation of trades entered by custodial participants

Clearing members of the custodial participants shall confirm trades entered into on behalf of the custodial participants. Such trades shall be confirmed by the clearing members in such manner, within such time and through such facility as may be provided to clearing members from time to time. Such confirmation shall be carried out within such time as may be specified by the Exchange/Clearing Corporation from time to time where such trades have been entered. All such trades which have been confirmed by clearing members shall form part of the obligations of clearing members concerned and such clearing members shall be responsible for all obligations arising out of such trades including the payment of margins, penalties, any other levies and settlement of obligations. Trades which have not been confirmed by clearing members of the custodial participants shall be considered as trades pertaining to the trading members entering such trades and shall form a part of the obligations of clearing members, who clear and settle for such trading members.

Item 3

SETTLEMENT SCHEDULE

In pursuance of Byelaw 13 of Part B of Chapter VI of the Byelaws and Chapter 3 of Regulations, the clearing days and scheduled times for F&O Segment are as under:

3.1 Settlement Period

The pay-in and pay-out of daily mark to market settlements, final settlement of futures contracts, premium settlement and the interim and final exercise settlements of options contracts shall be effected in accordance with the settlement schedule issued by the Clearing Corporation periodically. The paying members are required to have clear balance of funds in their clearing account towards their pay-in obligation by the declared pay-in time on the settlement day. The pay-out of funds shall be credited to the receiving members clearing account thereafter.

Currently, settlements are effected on a T+1 day basis.

3.2 Option to settle Daily MTM on T+0 day

Clearing members may opt to pay daily mark to market settlement on a T+0 basis. The option can be exercised once in a quarter (Jan-March, Apr-June, Jul-Sep & Oct-Dec). The option once exercised shall remain irrevocable during that quarter. Clearing members who wish to opt to pay daily mark to market settlement on T+0 basis shall intimate the Clearing Corporation as per the format specified in Annexure 2

Clearing members who opt for payment of daily MTM settlement amount on a T+0 basis shall not be levied the scaled up margins.

The pay-out of MTM settlement shall continue to be done on T+1 day basis, or as declared by the Clearing Corporation from time to time.

Item 4

SETTLEMENT PRICE

In pursuance of Bye-law 12 of Part B of Chapter VI of the Bye-laws and the Regulations 5.2, 5.5 and Chapter 5A of the Regulations, Settlement price for settlement of futures and option contracts is specified as under:

4.1 Daily Settlement Price for mark to market settlement of futures contracts

Daily settlement price for futures contracts shall be the closing price of such contracts on the trading day. The closing price for a futures contract shall be calculated on the basis of the last half an hour weighted average price of such contract or such other price as may be decided by the relevant authority from time to time.

4.2 Theoretical daily settlement price for unexpired futures contracts which are not traded during the last half an hour on a day

Theoretical daily settlement price for unexpired futures contracts, which are not traded during the last half an hour on a day, shall be the price computed as per the formula detailed in Annexure 3.

4.3 Final Settlement Price for mark to market settlement of futures contracts

Final settlement price for a futures contract shall be the closing price of the relevant underlying/index in the Normal Market of the Capital Market segment of National Stock Exchange on the last trading day of such futures contract.

4.4 Settlement Price for mark to market settlement of interest rate futures contracts

4.4.1 Daily settlement price for an interest rate futures contract shall be the closing price of such interest rate futures contract on the trading day. The closing price for an interest rate futures contract shall be calculated on the basis of the last half hour weighted average price of such interest rate futures contract.

4.4.2 Theoretical daily settlement price for unexpired contracts which are not traded in the last half hour on a day, shall be the price computed as per the formula detailed in Annexure 3.

In respect of zero coupon notional bond the price of the bond shall be the present value of the principal payment discounted using discrete discounting for the specified period at the respective zero coupon yield.

In respect of the notional T-bill, the settlement price shall be 100 minus the annualized yield for the specified period computed using the zero coupon yield curve.

In respect of coupon bearing notional bond, the present value shall be obtained as the sum of present value of the principal payment discounted at the relevant zero coupon yield and the present values of the coupons obtained by discounting each notional coupon payment at the relevant zero coupon yield for that maturity. For this purpose the notional coupon payment date shall be half yearly and commencing from the date of expiry of the relevant futures contract.

4.4.3 Final settlement price for an interest rate futures contract on zero coupon notional bond and coupon bearing bond shall be based on the price of the notional bond determined using the zero coupon yield curve. In respect of notional T-bill it shall be 100 less the annualized yield for the specified period computed using the zero coupon yield curve.

4.5 Interim and final exercise settlement price for option contracts

4.5.1 Interim exercise settlement price for option contracts on individual securities

Interim Exercise settlement price for an option contract shall be the closing price of the relevant underlying security in the Normal Market of the Capital market segment of National Stock Exchange. The closing price of the relevant underlying security shall be calculated on the basis of the last half an hour weighted average price of the relevant underlying security or such other price as may be decided by the relevant authority from time to time.

4.5.2 Final Exercise settlement price for an option contract

Final Exercise settlement price for an option contract shall be the closing price of the relevant underlying security in the Normal Market of the Capital market segment of National Stock Exchange, on the last trading day of the options contract. The closing price of the relevant underlying security shall be calculated on the basis of the last half an hour weighted average price of the relevant underlying security or such other price as may be decided by the relevant authority from time to time.

Item 5

SETTLEMENT PROCEDURE

In pursuance of Chapter VI of the Bye-laws and Chapter 3, 5, 5A of the Regulations, the settlement procedure for deals in futures and options contracts shall be as under:

5.1 Daily mark to market settlement and final settlement for futures contract

Daily mark to market settlement and final settlement in respect of admitted deals in futures contracts shall be cash settled by debit/ credit of the clearing accounts of clearing members with the respective clearing bank.

All positions (brought forward, created during the day, closed out during the day) of a clearing member in futures contracts, at the close of trading hours on a day, shall be marked to market at the daily settlement price (for daily mark to market settlement) and settled.

All positions (brought forward, created during the day, closed out during the day) of a clearing member in futures contracts, at the close of trading hours on the last trading day of the contract, shall be marked to market at final settlement price (for final settlement) and settled.

Open positions in a futures contract shall cease to exist after its expiration day.

5.2 Premium settlement for option contracts

Premium settlement in respect of admitted deals in options contracts on index and on individual securities shall be cash settled by debit/ credit of the clearing accounts of clearing members with the respective clearing bank.

The premium payable or receivable value of clearing members shall be computed after netting the premium payable or receivable positions at trading member level, for each option contract, at the end of each trading day.

5.3 Exercise settlement for option contracts

5.3.1 Index options

Exercise style of index option contracts shall be European style wherein all in-the-money contracts shall get automatically exercised on the expiry day. Exercise settlement shall be effected for all in-the-money option contracts on the last trading day of an option contract. Long positions at in-the money strike prices shall be assigned to short positions in option contracts with the same series on a random basis.

Exercise settlement in respect of admitted deals in index option contracts shall be cash settled by debit/ credit of the clearing accounts of the relevant clearing members with the respective clearing bank.

Index option contracts, which have been exercised, shall be assigned and allocated to clearing members at the client level.

Open positions, in an index option contracts, shall cease to exist after its expiration day.

5.3.2 Options on individual securities

Exercise style of option contracts on individual securities shall be American style. Option contracts, which have been exercised, shall be assigned and allocated to clearing members, at the client level on a random basis.

5.3.2.1 Interim exercise settlement

Interim exercise settlement shall be effected for exercised option positions on the day of exercise. Valid exercised option contracts shall be assigned to short positions in option contract with the same series at the client level on a random basis.

5.3.2.2 Final exercise settlement

Final exercise settlement shall be effected for all in-the-money option contracts on the last trading day of an option contract. Long positions at in-the money strike prices shall be assigned to short positions in option contracts with the same series at the client level on a random basis.

Exercise settlement may be cash settled or delivery settled, in accordance with SEBI guidelines. Currently option contracts shall be cash settled in F&O segment, by debit/ credit of relevant clearing accounts of relevant clearing members with the respective clearing bank towards the exercise settlement value for each unit of the option contract.

5.4 Daily MTM settlement on T+0 day

Clearing members who opt to pay the Daily MTM settlement on a T+0 basis shall compute such settlement amounts on a daily basis and make the amount of funds available in their clearing account before the end of day on T+0 day. Failure to do so shall tantamount to non payment of daily MTM settlement on a T+0 basis. Further, partial payment of daily MTM settlement shall also be considered as non payment of daily MTM settlement on a T+0 basis. These shall be construed as non compliance and penalties applicable for fund shortages from time to time shall be levied.

A stringent penalty of 0.07 % of the margin amount at end of day on T+0 would be levied on the clearing members. Further, the benefit of scaled down margins shall not be available in case of non payment of daily MTM settlement on a T+0 basis from the day of such default to the end of the relevant quarter.

Item 6

SECURITIES TRANSACTION TAX

In pursuance the Regulations 2.4, Collection of securities transaction tax shall be as under:

6.1 STT Computation:

As per the Finance Act 2004, and modified by Finance Act 2008 (18 of 2008) STT on the transactions executed on the Exchange shall be as under:

Sr.No.	Taxable securities transaction	New rate from 01.06.2008	Payable by
A	B	C	D
a	Sale of an option in securities	0.017 per cent	Seller
b	Sale of an option in securities, where option is exercised	0.125 per cent	Purchaser
c	Sale of a futures in securities	0.017 per cent	Seller

(a) Value of taxable securities transaction relating to an “option in securities” shall be the option premium, in case of sale of an option in securities.

(b) Value of taxable securities transaction relating to an “option in securities” shall be the settlement price, in case of sale of an option in securities, where option is exercised.

Members may note that the following procedure shall be adopted by the Exchange in respect of the calculation and collection of STT:

1. STT shall be applicable on all sell transactions for both futures and option contracts.
2. STT shall be determined at the end of each trading day.
3. All the transactions shall be identified based on the client code placed by the members at the time of order entry on the trading system of the Exchange and as may be modified by the member using the client code modification facility provided by the Exchange within the prescribed time viz. during trading hours and upto the trade modification close time on the respective trading day. In respect of proprietary transactions the member code shall be deemed to be the client code.
4. Members may note that under the draft STT Rules 2004, the value of taxable securities transaction shall be determined with respect to the trade executed under a particular client code. Therefore the Exchange shall only reckon the client code entered by the member while placing the order or as may be modified within the prescribed time. It is therefore imperative that members exercise extreme caution and diligence while entering the client code at the time of entering an order.
5. For each client code, all the sell transactions for a trading day shall be aggregated at contract level.
6. For the purpose of STT, each futures trade shall be valued at the actual traded price and option trade shall be valued at premium. On this value, the STT rate as prescribed shall be applied to determine the STT liability. In case of voluntary or final exercise of an option contract STT shall be levied on settlement price on the day of exercise if the option contract is in the money.
7. STT payable by the clearing member shall be the sum total of STT payable by all trading members clearing under him. The trading member’s liability shall be the aggregate STT liability of clients trading through him.

6.2 Information to members

A report shall be provided to the members at the end of each trading day. This report shall contain information on the total STT liability, trading member wise STT liability, client wise STT liability and also the detailed computations for determining the client wise STT liability.

6.3 Client code modification

As explained above, since the Exchange shall be reckoning the client code entered by the members, members are advised to carry out client code modification, if any, within the prescribed time viz. during trading hours and up to the trade modification close time on the respective trading day. The Exchange shall not entertain any request for modification thereafter.

6.4 Pay-in of funds

Clearing members shall be required to pay the STT on T+1 day. The STT amount shall be collected as per the timelines stipulated for the funds pay-in. A separate transaction shall be created and the monies shall be collected from the settlement account of members through their clearing banks as per the process currently followed in respect of settlement obligations.

6.5 Failure to pay funds

Non payment of STT shall be treated as non fulfilment of settlement obligations for the purpose of all consequential actions against the member.

6.6 Information to clients

The contract note should specify the total securities transaction tax for the transactions mentioned therein. Trading Members shall issue the STT details as provided by the Exchange to their respective clients in the format given at Annexure 4, along with the contract note for the transactions executed on the Stock Exchange.

ITEM 7

CLEARING BANK

In pursuance of Byelaw 11 of Part B of Chapter VI of Byelaws and Chapter 7 of the Regulations, the provisions relating to clearing bank appointed by Clearing Corporation, are specified as under:

7.1 Designated Clearing Bank(s)

Funds to be paid and/ or to be received shall be settled through such branches of banks which are designated as clearing banks by the relevant authority from time to time. The designated clearing banks and their designated branches are given in Annexure 5.

7.2 Maintenance and operation of clearing account

· Every clearing member shall maintain and operate a separate and distinct clearing account for the segment with any one of the designated clearing banks as mentioned above. 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 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 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 the Clearing Corporation.

7.3 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.

· 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 as mentioned in 7.2 above.

· 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 8

TOTAL 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 by the relevant authority 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, 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 wherein the cash component shall be at least 50% of liquid assets. This implies that non cash component in excess of the total cash component would not be regarded as part of total liquid assets.

8.1 Liquid Networth

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 Networth are specified as under:

Liquid Networth shall be computed as total liquid assets less initial margin payable at any point in time.

The clearing member shall meet with the liquid networth requirements prescribed by the Clearing Corporation at all points of time.

8.1.1 Minimum liquid networth requirement for clearing members

Every clearing member of the Clearing Corporation is required to maintain a minimum liquid networth of Rs.50 lakhs with the Clearing Corporation in the following manner:

(a) Rs.25 lakhs in the form of cash, and

(b) Rs.25 lakhs in any one or combination of the following forms:

i) Cash

ii) Fixed Deposit Receipts (FDRs) issued by approved banks as given in Annexure 7 and deposited with approved Custodians or with the Clearing Corporation. (Formats of letters to be submitted are prescribed in Annexure 8, 9, 10 & 11).

iii) Bank Guarantee in favour of National Securities Clearing Corporation Ltd. from approved banks as per the format specified. The list of approved banks is given in Annexure 7 and the bank guarantee format is given in Annexure 12.

iv) Equity shares of approved companies and units of mutual funds in demat form deposited with approved Custodians. Formats of Deed of pledge are prescribed in Annexure 13 &14 .

8.1.2 Clearing member deposit for trading members whose deals they clear and settle

In addition to the requirements specified under 8.1.1, every clearing member is required to maintain a deposit of Rs.10 lakhs each, in respect of every trading member whose deals such clearing members undertake to clear and settle, in the following manner:

(1) Rs.2 lakhs to be maintained in the form of cash.

(2) Rs.8 lakhs to be maintained in any one or combination of the forms of collaterals as specified in 8.1.1(b).

8.1.3 Non-fulfilment of Security Deposit Requirements

Any failure on the part of a clearing member to meet with the deposit requirements as given in 8.1.1 and 8.1.2 at any point of time, will be treated as a violation of the Rules, Bye-Laws and Regulations of the Clearing Corporation and 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 clearing member including withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing and settling through such clearing members, without any notice.

In addition, the outstanding positions of such clearing member and/ or trading members and/ or constituents, clearing and settling through such clearing member, 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 clearing member without any notice to the clearing member and/ or trading members and/ or constituents, and such action shall be final and binding on the clearing member and/ or trading members and/ or constituents. Clearing Corporation may also initiate such other risk containment measures as it deems fit with respect to the open positions of the clearing member and/ or trading members and / or constituents.

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.

8.2 Margin Deposits by the clearing member

In pursuance of Byelaw 2 of Chapter VIII of the Byelaws and Chapter 4 of Regulations, the following requirements are prescribed in respect of margin deposits to be provided by clearing members:

Clearing members who wish to provide any deposits at any point of time, over and above their minimum liquid networth requirement and deposit requirement as given in 8.1.1 and 8.1.2 above towards margins 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 7 and deposited with approved custodians or with the Clearing Corporation. Formats of letters to be submitted are prescribed in Annexure 15, 16,17 & 18

iii) Bank Guarantee in favour of National Securities Clearing Corporation Ltd. from approved banks as given in Annexure 7. The bank guarantee format is given in Annexure 12

iv) Equity shares of approved companies and units of mutual funds in demat form deposited with approved custodians. Formats of Deed of pledge are prescribed in Annexure 19 & 20

v) Foreign Sovereign Securities as per the procedure specified in 8.3.5

8.3 Guidelines for Submission of Deposits

8.3.1 Cash

Clearing members may submit deposit in the form of cash by making the required amount available in their respective clearing bank account, sending an authorization to the Clearing Corporation for debiting the said amount from their clearing account.

A web based facility called Collateral Interface for Members (CIM) is provided in this regard which enables the members to log in through internet. Members will be able to 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 21.

The benefit of such cash deposit requests shall be subject to receipt of bank confirmation from the respective clearing bank by the Clearing Corporation. A member who has authorised the Clearing Corporation to debit his clearing account as above shall ensure due performance of the commitment. Non-fulfilment 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.

8.3.2 Fixed Deposit Receipt

Clearing 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: "NSCCL A/c CLEARING MEMBER NAME" or "Custodian Name” (as the case may be) - A/c CLEARING MEMBER NAME" as the case may be and should be deposited with the Clearing Corporation or approved custodian.

2. Clearing 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 clearing members, for adjustment of Clearing Corporation dues. The formats of the letter are given in Annexure 8, 10, 15 and 17.

3. Clearing members are required to submit a letter from the bank issuing the FDR to the approved custodian/ Clearing Corporation in the formats given in Annexure 9, 11, 16 and 18.

4. The minimum value of FDR that may be accepted shall be Rs.2 lakhs. The FDR should be issued 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 payable at any of the branches situated in cities of Mumbai, New Delhi, Chennai, Calcutta, Ahmedabad, and Hyderabad of the approved banks. The list of approved banks is as per Annexure 7.

8.3.2.1 Shifting of FDR from Capital Market/Currency Derivatives segment to F&O segment

Clearing Members, who intend to release the FDR provided as margin deposit in Capital Market/Currency Derivatives segment and add the same as margin deposit in F&O segment, are required to submit a letter to the Clearing Corporation requesting for the same. The format of the letter is specified in Annexure 22

8.3.2.2 Renewal of fixed deposit receipt

In case of renewal of FDRs, the clearing member shall furnish the renewal letter from the respective bank. The format of the letter to be given by the Bank in case of renewal where there is no change in the FDR no. is given in Annexure 23. In case the renewed FDR no. is different from the old FDR no., the format of the letter to be given by the Bank is given in Annexure 24.

In case the renewed FDR/ fresh FDR is not submitted and whereby the member does not fulfil the security deposit requirements, actions as provided in 8.1.3 above shall be applicable.

8.3.3 Bank Guarantees

The acceptance of the bank guarantees by the Clearing Corporation shall be subject to the bank-wise and member-wise and limits as are stipulated from time to time. The maximum value of bank guarantees that can be given from the issuing bank per clearing member is as provided below

Rupees in Crores

Net worth (NW) of the banks *	Applicable total limit per clearing member across all segments
100-200	5
200-500	10
500-1000	15
1000-2000	25
2000-3000	35
>3000 **

Over Rs.3000 crores, for each Rs. 1000 crores of networth, an incremental limit of Rs. 10 crores per clearing member shall be allowed. In respect of bank guarantees issued by the designated clearing banks, 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. Members are advised to check their applicable limit before getting their bank guarantees issued.

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

Additionally, at the time of deposit of the bank guarantee, the clearing member is required to ensure the following:

1. The bank guarantee is strictly as per the formats prescribed by the Clearing Corporation. The format of bank guarantee is provided in Annexure 12.

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 clearing members shall submit a bank guarantee for a minimum period of 15 months. The maturity period of such bank guarantee shall be reduced 3 months, which would be considered as the claim period of the bank guarantee.

3. A bank guarantee for margin deposit should be issued 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 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 and should be signed by at least two authorised signatories of the bank.

e. The clearing member should also ensure that the bank guarantee is free from any discrepancy before the same is submitted to the Clearing Corporation.

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.

8.3.3.1 Shifting of the Bank Guarantee from Capital Market/Currency Derivatives Segment to F&O Segment

Clearing Members, who intend to shift Bank Guarantee provided as margin deposit in the Capital Market/Currency Derivatives segment to F&O segment, are required to submit a letter to the Clearing Corporation requesting to shift the Bank Guarantee. The format of the letter is specified in Annexure 25. The member is further required to provide an amendment letter from the respective bank. The format of the amendment letter is specified in Annexure 26.

8.3.3.2 Renewal of Bank guarantee

In case of renewal of bank guarantees, the clearing 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 27.

In case the renewed bank guarantees/ fresh bank guarantees are not submitted within the above mentioned periods whereby the member does not fulfil the security deposit requirements, action as provided in 8.1.3 above shall be applicable.

8.3.3.3 Reminder letters through extranet

Reminder letters are downloaded on a monthly basis through the extranet in respect of the Bank Guarantees and Fixed deposits that are due for renewal in the following month (Path: / FAOFTP/F<TMCODE>/LETTERS/DNLD). Further the file naming convention for the same is F_REMINDERS_MEMBER CODE_DDMMYYYY.LIS 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 8.1.3 above.

8.3.4 Securities

8.3.4.1 Eligible securities

Clearing Members are permitted to deposit shares of approved 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 28) in this regard. These securities shall be pledged in favour of National Securities Clearing Corporation Limited.

The valuation of the securities shall be in accordance with the norms prescribed by the Clearing Corporation from time to time. 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 securities. 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.

Currently, securities forming part of VaR Margin Group 1 in the Capital Market segment shall be accepted as approved securities. The Clearing Corporation shall intimate the list of approved securities from time to time. The securities shall be valued on a daily basis based on the closing price of the security in the Capital Market segment of the National Stock Exchange of India Ltd. The VaR margin rate applicable for the security in the Capital Market segment shall be applied as haircut on the value of the securities provided by the clearing members to arrive at the net value of the securities.

Clearing Corporation may revise the list of approved securities and, the haircuts from time to time. Clearing 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.

8.3.4.2 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.

8.3.4.3 Ownership of Securities

The securities that may be deposited, shall be subject to the legal and beneficial ownership of the clearing member/ spouse, any of the partners/ their spouses or any of the directors, in case of individual, partnership or corporate clearing 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 clearing member, as applicable, a Clearing Member shall be required to replace the securities belonging to such outgoing partners /directors immediately. The approved custodians shall be required to exercise due care for such replacement of securities and reporting thereof to the Clearing Corporation.

8.3.4.4 Opening of accounts:

Clearing members are required to open a separate depository account with the approved Custodians for the purpose of deposit of securities. Clearing members who are interested in availing of this facility may get in touch with the approved Custodians (list as per Annexure 28) to ascertain the modalities with regard to deposit of securities.

8.3.4.5 Marking of pledge

Clearing members may provide demat securities by marking a pledge of the securities in favour of the Clearing Corporation. The clearing member shall be required to submit all such documents as may be required by the Clearing Corporation and the approved custodian from time to time including the Deed of Pledge as per the specified formats as mentioned in Annexure 13, 14, 19 and 20.

Clearing 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 hair cut percentages. On the basis of the Custodian’s advice, benefit towards security pledged shall be provided to the member.

8.3.5 Foreign Sovereign Securities as Collateral

Clearing members may collect Foreign Sovereign Securities as collateral from Foreign Institutional Investors (FIIs) for Exchange Traded Derivative Transactions and provide the same as collateral to the Clearing Corporation. The methodologies for acceptance of foreign sovereign securities shall be as under:

1. Only US Government securities with ‘AAA’ rating shall be eligible to be provided as collateral.
2. The clearing members shall pledge the securities in favour of the Clearing Corporation through the approved custodian. For this purpose the clearing member shall be required to open account with the approved custodian. Currently, Deutsche Bank, New York has been designated as approved custodian for acceptance of foreign sovereign securities. The clearing members are required to contact Deutsche Bank for opening of necessary accounts. The contact details of Deutsche Bank have been provided in Annexure 29
3. The clearing members shall be required to execute the following agreements before providing foreign sovereign securities as collaterals to the Clearing Corporation
1. Clearing member- NSCCL agreement as per Annexure 30
2. Clearing member-FII agreement as per Annexure 31
3. Indian Deed of pledge in favour of NSCCL as per Annexure 32
4. New York Collateral Annex as per Annexure 33
5. Account control agreement as per Annexure 34
4. In respect of FII clients who shall be providing foreign sovereign securities the clearing member shall be required to execute the revised Clearing member- constituent agreement as per Annexure 35
5. The foreign sovereign securities shall be valued on a daily basis and converted into rupee terms based on the latest available RBI reference rate or such other rate as specified by the Clearing Corporation from time to time.
6. A hair cut of 20% or such other hair cut as specified by the Clearing Corporation from time to time shall be applied on the value of foreign securities pledged by the clearing members. The net value after applying the hair cut shall be added to the cash component of the liquid assets of the clearing member
7. The net value of foreign sovereign securities shall not exceed 10% of the total value of the cash component of the liquid assets of the clearing member.
8. The clearing member may request for release of foreign sovereign securities to the Clearing Corporation as per the format provided in Annexure 36.

8.4 Releases of Liquid Assets

Clearing 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 fulfilment of all obligations and liabilities arising out of or incidental to any deals made by such clearing member and / or trading members clearing and settling the deals through such clearing 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 Collateral 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 the file to be uploaded by the clearing member is provided in Annexure 37.

Item 9

MARGINS

In pursuance of Chapter VIII of the Bye-laws pertaining to Margins and Chapter 4 of the Regulations, the following margin requirements are prescribed:

9.1 Initial Margins

Initial margin shall be payable on all open positions of Clearing Members, upto client level, and shall be payable upfront by Clearing Members in accordance with the margin computation mechanism and/ or system as may be adopted by the Clearing Corporation from time to time.

Initial Margin shall include SPAN margins, premium margin, assignment margin and such other additional margins, that may be specified by the Clearing Corporation from time to time.

9.2 Computation of Initial Margin

Clearing Corporation shall adopt SPAN^® (Standard Portfolio Analysis of Risk) system or any other system for the purpose of real time initial margin computation.

Initial margin requirements shall be based on 99% value at risk over a one day time horizon. However, in the case of futures contracts, where it may not be possible to collect mark to market settlement, before the commencement of trading on the next day, the initial margin may be computed over a two day time horizon by applying an appropriate statistical formula. In case of clearing members who have opted for payment of MTM settlement on a T+0 basis and have intimated the same to the Clearing Corporation, the initial margin may be computed over a one day time horizon.

The methodology for computation of value at risk percentage shall be as per the recommendations of SEBI from time to time. The initial margin computation methodology for SPAN^® is detailed as Annexure 38.

Initial margin requirement:

1. For client positions - shall be netted at the level of individual client and grossed across all clients, at the trading/ clearing member level, without any set-offs between clients.
2. For proprietary positions - shall be netted at trading/ clearing member level without any set-offs between client and proprietary positions.

The margins so computed shall be aggregated first at the trading member level and then aggregated at the clearing member level.

For the purpose of SPAN^® Margin, various parameters shall be as specified hereunder or such other parameters as may be specified by the relevant authority from time to time:

9.2.1 Price scan range

9.2.1.1 Index Products: The Price Scan Range shall be taken as three standard deviations (3 sigma) as calculated for VaR purpose for the underlying index in the relevant underlying segment of the Exchange or such other price scan range as may be specified by the Clearing Corporation from time to time.

9.2.1.2 Stock Products: The Price Scan Range shall be taken as three and a half standard deviations (3.5 sigma) as calculated for VaR purpose for the relevant underlying security in the relevant underlying segment of the Exchange, or such other price scan range as may be specified by the Clearing Corporation from time to time.

The price scan range for futures and option on individual securities would also be linked to liquidity. The same shall be measured in terms of impact cost for an order size of Rs 5 lakh calculated on the basis of order book snapshots in the previous six months. Accordingly, if the mean value of the impact cost exceeds 1%, the price scanning range would be scaled up by square root of three. This would be in addition to the requirement of increasing the price scan range on account of look ahead period as may be applicable.

The mean impact cost as stipulated by SEBI shall be calculated on 15^th of each month on a rolling basis considering the order book snap shots of previous six months. If the mean impact cost of a security moves from less than or equal to 1% to more than 1%, the price scan range in such underlying shall be scaled by square root of three and scaling shall be dropped when the impact cost drops to 1% or less. Such changes shall be applicable on all existing open positions from the third working day from the 15^th of each month. The details of impact cost for underlying on which derivative contracts are available and the methodology of computation of the same shall be available on the Exchange website www.nseindia.com

9.2.1.3 Futures on Interest Rate: In the case of zero coupon notional bond and coupon bearing bond futures and Notional T-Bill Futures, the price scan range shall be 3.5 Standard Deviation (3.5 sigma) or such other price scan range as may be specified by the Clearing Corporation from time to time. In case of interest rate futures, the initial margins would be based on the zero coupon yield curve computed at the end of the day with trades of same day settlement (t =0). However, in case of large deviation between the yields generated using only t = 0 trades and all trades, initial margins may be revised accordingly and collected by the Clearing Corporation from the members at its discretion.

9.2.2 Volatility scan range

9.2.2.1 Index products: Volatility Scan Range for index products shall be taken at 4% or such other percentage as may be specified by the Clearing Corporation from time to time.

9.2.2.2 Stock products: Volatility Scan Range for stock products shall be taken at 10% or such other percentage as may be specified by the Clearing Corporation from time to time.

9.2.3 Calendar Spread Charge

In the case of futures and options contracts on index and individual securities, the margin on calendar spread positions shall be calculated on the basis of delta of the portfolio consisting of futures and options contracts in each month. A calendar spread position shall be granted calendar spread treatment till the expiry of the near month contract

The calendar-spread margin shall be charged in addition to worst-scenario loss of the portfolio. The spread charge shall be 0.5% per month of spread on the far month contract subject to a minimum margin of 1% and a maximum margin of 3% on the far side of the spread with legs upto 1 year apart..

For the futures contracts on interest rate, the margin on calendar spread shall be calculated at a flat rate of 0.125% per month of spread on the far month contract subject to a minimum margin of 0.25% and a maximum margin of 0.75% on the far side of the spread with legs upto 1 year apart.

9.2.4 Short Option Minimum Charge

9.2.4.1 Index Options: Short option minimum charge shall be equal to 3% of the notional value of all short positions in index options. Notional value, with respect to an option contract, shall be computed as the product of the short open position in that option contract multiplied by the previous day's closing price of the underlying index in the normal market of Capital Market segment of the Exchange, or such other price as may be specified by the Clearing Corporation from time to time.

9.2.4.2 Options on individual securities: Short option minimum charge shall be equal to 7.5 % of the notional value of all short positions in options on individual stocks. Notional value, with respect to an option contract, shall be computed as the product of the short open position in that option contract multiplied by the previous day's closing price of the underlying security in the normal market of Capital Market Segment of the Exchange, or such other price as may be specified by the Clearing Corporation from time to time.

9.2.5 Net Option Value

Net Option Value is computed as the difference between the long option positions and the short option positions, valued at the last available closing price of the relevant option contract.

9.2.6 Minimum Percentage for Margins on Futures Contracts:

The minimum margin percentage on index futures shall be 5% which shall be scaled up by look ahead period as may be specified by the Clearing Corporation from time to time

The minimum margin percentage on stock futures shall be 7.5% which shall be scaled up by look ahead period as may be specified by the Clearing Corporation from time to time. Additionally, if the mean impact cost of a security exceeds 1%, the minimum margin percentage in such underlying shall be scaled by square root of three.

The minimum percentage of margins for the futures contract on the Notional bond (both coupon bearing and zero coupons) shall be 2% and for the futures on notional T-Bill shall be 0.2% which shall be scaled up by look ahead period as may be specified by the Clearing Corporation from time to time.

9.2.7 Premium Margin

Premium Margin shall mean and include premium amount due to be paid to the Clearing Corporation towards premium settlement, at the client level. Premium margin shall be levied till the completion of pay-in towards the premium settlement.

9.2.8 Assignment Margin

Assignment Margin shall be levied on assigned positions of the clearing members towards interim and final exercise settlement obligations for option contracts on index and individual securities. Assignment margin shall be the net exercise settlement value payable by a clearing member towards interim and final exercise settlement. Assignment margin shall be levied till the completion of pay-in towards the exercise settlement

9.3 Updation of risk parameters

The parameters for computation of span margin shall be updated as specified by the relevant authority from time to time. To start with the parameters shall be updated 6 times in the day, based on the prices at 11:00 a.m., 12:30 p.m., 2:00 p.m., 3:30 p.m., end of the day and begin of the day. Risk parameters generated based on the updated parameters shall be provided on the exchange website at www.nseindia.com

9.4 Exposure margins

Clearing members shall be subject to exposure margins in addition to initial margins. The applicable exposure margin shall be as specified hereunder or as may be specified by the relevant authority from time to time

9.4.1 Index Futures contracts: The exposure margin shall be 3% of the notional value of the futures positions, based on the last available trading price of the relevant futures contract.

9.4.2 Short Index Options contracts: The exposure margin shall be 3% of the notional value of the short open positions in options on index, based on the last available closing price of the underlying index in the normal market of Capital Market segment of the Exchange.

9.4.3 Futures contracts on individual Securities: The exposure margins shall be higher of 5% or 1.5 standard deviation of the notional value of gross open position in futures on individual securities in a particular underlying.

9.4.4 Short Option contracts on individual Securities: The exposure margins shall be higher of 5% or 1.5 standard deviation of the notional value of short open positions in options on individual securities based on the last available closing price of the of the underlying security in the normal market of Capital Market segment of the Exchange.

For this purpose, the standard deviation of daily logarithmic returns of prices of the underlying security in the normal market of Capital Market segment of the Exchange in the last six months shall be computed on a rolling and monthly basis at the end of each month. The applicable exposure margins shall be intimated by the Clearing Corporation from time to time.

9.4.5 Futures contracts on Interest rate futures: Exposure margin shall be 1% of the notional value of the gross open positions in notional bond futures (both coupon bearing and zero coupons) and shall be 0.1% of the gross open positions in notional T-Bill futures.

9.4.6 Calendar Spread: In case of calendar spread positions in futures contracts, exposure margin shall be levied on one third of the value of the open position of the far month futures contract. A calendar spread position shall be granted calendar spread treatment till the expiry of the near month contract

9.4.7 Exposure margin requirement:

1. For client positions - shall be netted at the level of individual client and grossed across all clients, at the trading/ clearing member level, without any set-offs between clients.
2. For proprietary positions - shall be netted at trading/ clearing member level without any set-offs between client and proprietary positions.

The margins so computed shall be aggregated first at the trading member level and then aggregated at the clearing member level.

9.5 Imposition of additional margins

As a risk containment measure, the relevant authority may require clearing members to make payment of additional margins as may be decided from time to time. This shall be in addition to the initial margin and exposure margin, which are or may have been imposed from time to time.

9.6 Mode of payment of margin

Clearing members shall provide for margin in any one or more of the eligible collateral as detailed in Item 8 above. The margins shall be collected /adjusted from the liquid assets of a member on a real time basis

9.7 Payment of margins

The initial and exposure margin shall be payable upfront by the clearing members. Members are required to collect initial margins from their client/constituents on an upfront basis.

Members are required to collect initial margins from their client/constituents on an upfront basis. It is mandatory for all clearing /trading members to report details of such margins collected to the Clearing Corporation. The procedure for reporting of client margin is detailed in Item 14

Amount of liquid networth of a clearing member utilised towards exposure margins arising out of open positions of trading members/clients, clearing and settling through them, may be recovered from such trading members/clients.

9.8 Effect of failure to pay margins

Non-fulfilment of either the whole or part of the margin obligations shall be treated as a violation of the Rules, Bye-Laws and Regulations of the Clearing Corporation. The violation shall attract actions as specified under Item 15. In addition and without prejudice to the foregoing, 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 the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members, without any notice.

In addition, the outstanding positions of such clearing member and/or trading members and/ or constituents, clearing and settling through such clearing member, 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 clearing member without any notice to the clearing member and/ or trading member and/ or constituent, and such action shall be final and binding on the clearing member and/ or trading member and/ or constituent. Clearing Corporation may also initiate such other risk containment measures as it deems fit with respect to the open positions of the clearing member and/ or trading member and / or constituent.

Clearing Corporation may, in addition to the foregoing provisions, take additional measures like, imposing penalties, collecting appropriate deposits, invoking bank guarantees, encashment of 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.

9.9 Maintenance of Capital Cushion

For the purpose of monitoring members who have high capital utilisations, the methodology as specified hereunder shall be adopted, or such other methodology as may be specified by the relevant authority from time to time

• At the end of each calendar month, members who have exceeded 90% of utilistion of limits during the day for more than 7 days in the current month shall be identified
• The capital required to bring the utilisation of the clearing members to a level of 85% at the time of violating the trigger point of 90% on each of those occasions shall be noted. The highest of such amounts for the identified clearing members during the month shall be called for as additional capital.
• The utilisation shall be monitored for both initial margins as well as exposure margin utilisation
• The requirement of additional margin shall be communicated to the clearing members on the first day of the subsequent month.
• The clearing members shall be required to provide the amount of additional capital in the form of Cash, FDRs or Bank Guarantees within three working days
• No benefit including exposure, margin etc shall be available to the clearing 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 clearing member is liable to provide additional capital in the subsequent month too, 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 clearing members on the first day of the subsequent month vide letter in the extranet directory.
• The letter of intimation of additional capital shall be available to clearing members in the extranet directory FAOFTP/F<MEMBER CODE>/LETTERS/DNLD
• Clearing members shall also be provided a provisional capital cushion report on a daily basis intimating the provisional amount of additional capital to be provided along with the number of days when the clearing member has crossed 90% of margin utilistion. The report shall be provided in the extranet directory FAOFTP/F< MEMBER CODE>/LETTERS/DNLD

9.10 Collateral Limit for Trading Members

Clearing members clearing and settling for other trading members - shall specify the maximum collateral limit permitted for each trading member. Such limits may be set up by the clearing member, at any time up to the close of market hours through the facility as may be provided on the trading system of the Exchange, or such other facility provided and time specified by the Clearing Corporation / Exchange from time to time. Such collateral limits once set shall be applicable to the respective trading members for that day, unless otherwise modified by the clearing member. The aggregate limit set up across all trading members, clearing and settling through such clearing member, shall at no point of time exceed the effective deposit of the clearing member with the Clearing Corporation less minimum liquid net worth.

Item 10

POSITION LIMITS

10.1 Trading Member wise Position Limit

10.1.1. Index Futures

The trading member position limits in equity index futures contracts shall be higher of Rs.500 crores or 15% of the total open interest in the market in equity index futures contracts. This limit would be applicable on open positions in all futures contracts on a particular underlying index

10.1.2. Index Options

The trading member position limits in equity index option contracts shall be higher of Rs.500 crores or 15% of the total open interest in the market in equity index option contracts. This limit would be applicable on open positions in all option contracts on a particular underlying index

10.1.3 Futures and Option contracts on individual securities:

I. For stocks having applicable market-wide position limit (MWPL) of Rs. 500 crores or more, the combined  futures and options  position limit  shall be 20% of applicable MWPL or Rs. 300 crores, whichever is lower and within which stock futures position cannot exceed 10% of applicable MWPL or Rs. 150 crores, whichever is lower.

II. For stocks having applicable market-wide position limit (MWPL) less than Rs. 500 crores, the combined futures and options position limit would be 20% of applicable MWPL and futures position cannot exceed 20% of applicable MWPL or Rs. 50 crores which ever is lower.

The Clearing Corporation shall specify the trading member-wise position limits on the last trading day of the month which shall be reckoned for this purpose during the next month.

10.1.4 Interest rate futures

The trading member position limits in interest rate derivative contracts shall be higher of Rs.500 crores or 15 % of the total open interest in the market in exchange traded interest rate derivative contracts.

Violation of such limits shall attract action as specified in Item 15.

10.2 Client Level Position Limits

10.2.1. Futures and Option contracts on individual securities

The gross open position across all the derivative contracts for a security for each specific client shall not exceed higher of:

- 1% of the free float market capitalization (in terms of number of shares)

OR

- 5% of the open interest in all derivative contracts in the same underlying stock

(in terms of number of shares)

Client level position limits security-wise, are made available to members on NSE’s website (www.nseindia.com).

10.2.2. Client wise position limits for Interest rate futures contracts:

Client level position limit shall be for near month contracts. It shall be higher of 15% of the open interest or Rs. 100 crores.

10.2.3 Unique Client ID Position Monitoring

The client level positions limits shall be monitored at the unique client code level based on the client details uploaded by the member to the Exchange. The client level position limits shall be applicable on the combined positions for the same clients trading through different members, as well.

In all the above cases, members shall ensure that client-level position limits are kept within the permissible limits. In the event of a violation, the trading member/ clearing member shall be required to ensure that -

(i) the client does not take fresh positions and

(ii) the position of such clients are reduced so as to be within permissible limits.

Violation of such limits shall attract action as specified in Item 15.

10.2.4. Disclosure for Client Positions in Index based contracts

Any person or persons acting in concert who together own 15% or more of the open interest on a particular underlying index is required to report this fact to the Exchange/ Clearing Corporation. Failure to do so shall be treated as a violation and shall attract appropriate penal and disciplinary action in accordance with the Rules, Byelaws and Regulations of the Clearing Corporation.

10.3 Market Wide Position Limits for derivative contracts on underlying stocks

Market Wide Position Limits for futures and options contracts on individual securities shall be 20% of the number of shares held by non-promoters in the relevant underlying security i.e. 20% of the free float in terms of the number of shares of a company.

The Clearing Corporation shall specify the market wide position limits on the last trading day of the month which shall be reckoned for this purpose during the next month.

A facility is being provided to display an alert in trading system once the open interest in the futures and options contract in a security exceeds 60% of the market wide position limits specified for such security. Such alerts may be displayed at time intervals of 10 minutes or such other duration as may be decided by the relevant authority from time to time.

Violation of such limits shall attract action as specified in Item 15.

10.4 Other Position limits

The position limits applicable for Foreign Institutional Investor (FII), Mutual Funds (MF), sub-accounts of FIIs, schemes of MF, NRIs are detailed in Item 11.

ITEM 11

PROCEDURE FOR FOREIGN INSTITUTIONAL INVESTOR, MUTUAL FUND AND NRIs

11.1 Procedure for trading by FII and their sub-accounts, Mutual Funds (MF) and their schemes.

1. FII/ sub-account of the FII/MF/Scheme of MF intending to trade in the F&O segment of the Exchange shall be required to notify the details of the clearing member/s, who shall clear and settle their trades in the F&O segment, to the Clearing Corporation as per Annexure 39

2. The clearing member/s of the FII/ sub-account of the FII/MF/Scheme of MF, are required to furnish the details to the Clearing Corporation as per Annexure 40 to obtain CP codes

3. The FII/ sub-account of the FII/MF/Scheme of MF shall provide a No objection letter from the custodian of the FII/ sub account/s of the FII/ MF/ Scheme of MF in case the clearing member is different from the custodian as per Annexure 41

4. Each FII/ sub-account of the FII, MF/ Scheme of MF as the case may be, intending to trade in the F&O segment of the Exchange, shall further be required to obtain a unique Custodial Participant (CP) code from the Clearing Corporation, through their clearing member. CP code normally comprises of 12 alphanumeric characters. Clearing Corporation shall allot CP codes to such FII/ sub-account of the FII/MF/Scheme of MF.

5. FII/ sub accounts of FII/MF/Scheme of MF which have been allotted a unique CP code by the Clearing Corporation shall only be permitted to trade on the Exchange.

6. The FII/ sub-account of FII/MF/ Scheme of MF shall ensure that all orders placed by them on the Exchange carry the relevant CP code allotted by the Clearing Corporation as specified in point 4 above, in the relevant field in the trading system of the Exchange.

7. Once the trade is executed in the trading system, the same shall be available to the clearing member, for approval or rejection. Clearing member shall approve or reject the trade for the FII/ sub-account of FII/MF/ Scheme of MF, on the same day within the stipulated time as per the mechanism provided from time to time.

8. In case the FII/ sub-account of FII/MF/ Scheme of MF wish to shift from one clearing member to another clearing member, an NOC may be submitted by the old clearing member as per Annexure 42 along with an application from the new clearing member as per Annexure 43 and the application to the new clearing member by the FII/ sub-account of FII/MF/ Scheme of MF as per Annexure 44.

11.2 FII and MF Position limits in index options contracts:

FII and MF position limit in all index options contracts on a particular underlying index shall be Rs.500 crores or 15 % of the total open interest of the market in index options, whichever is higher. This limit would be applicable on open positions in all options contracts on a particular underlying index.

11.3 FII and MF Position limits in index futures contracts:

FII and MF position limit in all index futures contracts on a particular underlying index shall be Rs.500 crores or 15 % of the total open interest of the market in index futures, whichever is higher. This limit would be applicable on open positions in all futures contracts on a particular underlying index.

11.4 Additional exposure in equity index derivatives

In addition to the above limits, in index futures and options, FIIs /MFs shall take exposure in equity index derivatives subject to the following limits:

a Short positions in index derivatives (short futures, short calls and long puts) not exceeding (in notional value) the FII’s/MFs holding of stocks.

b Long positions in index derivatives (long futures, long calls and short puts) not exceeding (in notional value) the FII’s/MFs holding of cash, government securities, T-Bills, money market mutual funds and gilt funds and similar instruments.

In this regard, if the open position of an FII/MF exceeds the limits as stated in item no. 11.2 or 11.3, such surplus would be deemed to comprise of short and long positions in the same proportion of the total open positions individually. Such short and long positions in excess of the said limits shall be compared with the FII’s/MFs holding in stocks, cash etc as stated above.

11.5 FII Position limits in interest rate futures

The notional value of gross open position of a FII in exchange traded interest rate derivative contracts shall be USD 100 million.

In addition to the above, the FII may take exposure in exchange traded interest rate derivative contracts to the extent of the book value of their cash market exposure in government securities

11.6 FII and MF Position limits on individual securities

1. For stocks having applicable market-wide position limit (MWPL) of Rs. 500 crores or more, the combined  futures and options  position limit  shall be 20% of applicable MWPL or Rs. 300 crores, whichever is lower and within which stock futures position cannot exceed 10% of applicable MWPL or Rs. 150 crores, whichever is lower.

2. For stocks having applicable market-wide position limit (MWPL) less than Rs. 500 crores, the combined futures and options position limit shall be 20% of applicable MWPL and stock futures position cannot exceed 20% of applicable MWPL or Rs. 50 crores which ever is lower.

11.7 Computation of Position Limits

The position limits shall be computed on a gross basis at the level of a FII/MF and on a net basis at the level of individual sub-accounts/schemes and proprietary positions. The open position for all derivative contracts would be valued as the open positions multiplied with the closing price of the respective underlying security/index in the normal market of the Capital Market segment of the Exchange.

11. 8 Reporting of holdings for FII/MF for additional limits in index products and

interest rate futures:

1. The FII/MF shall report to the clearing member the extent of FII’s /MFs holding of stocks, cash, government securities, T-Bills and similar instruments before the end of the day.
2. The clearing member in turn shall report the same to the Exchange/ Clearing Corporation.
3. The reporting shall be done for index as well as interest rate derivative products as separate records in the same file.
4. The same may be reported by uploading a file (in the format as provided below) by 5.00 pm on a daily basis. The details to be provided shall be based on the FII and MF registration number provided by SEBI.
5. The files so uploaded shall be processed and a return file shall be provided (as per format given below).
6. An additional window shall be provided to the clearing members to upload the file again by 5.30 pm.
7. In cases where for a particular FII/ MF multiple reporting is received from different clearing members, the minimum amount reported shall be considered.
8. In case of non- reporting by the clearing member for a FII or MF, the holdings shall be considered as zero.

11.8.1 File to be uploaded by clearing member:

The name of the file to be uploaded by the clearing member in the extranet server shall be

F_RPT_<DDMMYYYY_NN>.csv. (Comma Separated File)

where

-F is segment indicator

-RPT is the file type

-DDMMYYYY is the date of upload

-NN is the batch number (incremental number in case of subsequent file for same date)

The structure of the control record shall be as follows:

Sr. No.	Field Name	Remarks
1.	Date	Should be equal to the File Batch Date.(same format as in file name)
2.	Batch Number	Should be equal to the File Batch Number. (E.g. 01,02 etc)
3.	Number of Records	Should be equal to the total number of detail records in the file.

The structure of the detail record shall be as follows:

Sr. No.	Field Name	Remarks
1.	Date	format shall be DDMMYYYY (date for which reported)
2.	FII / MF Registration No.	SEBI FII/ MF registration number e.g. (for FII it shall be IN-AA-BB-0123-56 and for MF it shall be MF-01-23-01)
3.	Reporting Indicator	‘IDX’ for index products and ‘IRD’ for Interest rate derivatives.
4.	Stock / Cash Equivalents	‘SEC’ for holding of stocks and ‘CSH’ for others
5.	Notional value	Should be with maximum two decimals

All the fields mentioned above are mandatory

The files need to be uploaded on the extranet server in the following directory

/FAOFTP/F<MEMBER CODE>/RPT/UPLD

where

MEMBER CODE is 5 digit trading member code allotted to the member (e.g. 09999 and not M12345 or C23456)

11.8.2 Return file to be downloaded to clearing member:

F_<MEMBER CODE>_ RPTR_<DDMMYYYY_NN>.csv

Where

-F is segment indicator

-Member Code is 5 digit trading member code allotted to the member (eg. 09999 and not M12345 or C23456)

-RPTR is the return file type

-DDMMYYYY is the date of upload

-NN is the batch number

The structure of the control record shall be as follows:

Sr. No.	Field Name	Remarks
1.	Date	As reported by the member
2.	Batch Number	As reported by the member
3.	Number of Records	As reported by the member

The structure of the detail record shall be as follows:

Sr. No.	Field Name	Remarks
1.	Date	As reported by the member
2.	FII / MF Registration No.	As reported by the member
3.	Reporting Indicator	As reported by the member
4.	Stock / Cash Equivalents	As reported by the member
5.	Notional value	As reported by the member
6.	Status	‘C’ for confirmed records ‘R’ for rejected records
7.	Reason	Reason for Rejection

The files shall be downloaded on the extranet server in the following directory

/FAOFTP/F<MEMBER CODE>/RPTDNLD

where the MEMBER CODE is 5 digit trading member code allotted to the member (eg. 09999 and not M12345 or C23456)

11.9 Limits for Sub – accounts and schemes of Mutual Funds

11.9.1 Index Futures and Options

Any sub-account of FII/ scheme of MF or persons acting in concert who together own 15% or more of the open interest of all derivative contracts on a particular underlying index are required to report this fact to the Exchange/Clearing Corporation. Failure to do so shall be treated as a violation and shall attract appropriate penal and disciplinary action in accordance with the Rules, Byelaws and Regulations of the Clearing Corporation.

11.9.2 Futures and Options on individual securities

The gross open position across all futures and options contracts on a particular underlying security, of a sub-account of an FII or scheme of MF, should not exceed the higher of:

1% of the free float market capitalisation (in terms of number of shares)

or

5% of the open interest in the derivative contracts on a particular underlying stock (in terms of number of shares).

These position limits shall be applicable on the combined position in all futures and options contracts on an underlying security on the Exchange.

11.9.3 Interest Rate Futures

The position limits for sub-account of FIIs shall be for the near month contracts and shall be higher of 15% of the open interest or Rs. 100 crores.

11.10 Monitoring of Position Limits for FII/MF

Clearing Corporation shall monitor the open positions of the FII/ sub-account of the FII/ MF/ Scheme of MF for each underlying security and index, against the position limits specified at the level of FII/ sub-accounts of FII/ MF/Scheme of MF respectively, at the end of each trading day.

In the event of an FII /MF breaching the position limits on any underlying, the Clearing Corporation shall advise the Exchange to withdraw the facility granted to such FII /MF to take any fresh positions in any derivative contracts. Such FII/MF shall be required to reduce their open position in such underlying, in accordance with the mechanism provided by the Clearing Corporation from time to time. The facility withdrawn may be reinstated upon due compliance of the position limits.

It shall also be obligatory on FIIs /MFs to report any breach of position limits by them / their sub-account/s/schemes, to the Clearing Corporation and ensure that such sub-account/s/schemes do not take any fresh positions in any derivative contracts in such underlying.

Violation of limits shall attract action as specified in Item 15.

11.11 Scheme of Trading for NRIs

1. The NRI client shall have only one clearing member at any given point of time.
2. The NRI shall apply for a client code to the clearing member as per the format provided in Annexure 45
3. The clearing member shall apply for a Custodial Participant Code for the NRI clients to the Clearing Corporation as per the format provided in Annexure 46
4. Members may note that at the time of order entry on behalf of an NRI client, trading members have to ensure that the CP code of the NRI is placed in the CP code field of the trading system
5. Once the trade is executed in the trading system, the same shall be available to the clearing member, for approval or rejection. Clearing member shall approve or reject the trade for the NRI client, on the same day within the stipulated time as per the mechanism provided from time to time.
6. In case the NRI client wants to shift from one clearing member to another clearing member, an NOC may be submitted by the old clearing member as per Annexure 47 along with an application from the new clearing member as per Annexure 46 and the application to the new clearing member by the NRI as per Annexure 45.
7. All limits as applicable to clients shall be applicable to NRIs. Violation of limits shall attract action as specified in Item 15.

Item 12

CLOSING OUT

In pursuance of Bye-law 15 of Part B of Chapter VI of the Bye-laws and Chapter 6 of the Regulations, provisions relating to closing out on account of non-performance of obligations are specified as under:

12.1 Closing out

In the event of non-performance by a clearing member of any of his obligations as specified in the Bye-laws, Rules and Regulations, or for any other reason that the relevant authority may deem fit, including, action initiated by Government/ Statutory/ Regulatory Agencies, pursuant to any acts of violation/contravention of any statutes or Rules and/ or Regulations framed there under, committed by the clearing member and/ or trading members and/ or constituents, clearing and settling through such clearing member, the outstanding positions of such clearing member and/ or such trading members and/ or such constituents, may be closed out at any time by the Exchange, at the discretion of the Clearing Corporation, to the extent possible, either by placing at the Exchange, counter orders in respect of the outstanding position of clearing member, without any notice to the clearing member and/ or trading member and/ or constituent, or by such other mechanism provided by the Clearing Corporation from time to time. Such action shall be final and binding on the clearing member and/ or trading member and/ or constituent.

Clearing Corporation may also allow transfer of all or any of the open positions of clients or such other open positions of such clearing member, as may be specified from time to time, to any other clearing member, who agrees to accept such transfer, subject to such terms and conditions as may be specified by the Clearing Corporation from time to time.

Clearing Corporation may initiate such other risk containment measures as it deems fit with respect to the open positions of the clearing member and/ or trading member and / or constituent. Clearing Corporation may also require clearing members to reduce/ close-out open positions to such levels and for such contracts as may be decided by the relevant authority from time to time.

In addition and without prejudice to the foregoing, 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 clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members, without any notice.

Clearing Corporation may, in addition to the foregoing provisions, take additional measures like, imposing penalties, collecting appropriate deposits, invoking bank guarantees, encashment of 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.

12.2 Close-out facility

Trading members shall be provided an online facility to close- out open positions in the F&O segment whose trading facility is withdrawn for any reason subject to conditions specified below and that as may be specified by the Clearing Corporation from time to time.

1. Clearing members shall be required to send a written intimation (fax) to the Clearing Corporation containing a list of trading members to be marked as eligible for close-out facility in the format provided as per Annexure 48.

2. The clearing member shall be permitted to change his option to mark a trading member as eligible/ ineligible by sending a request for the same in the above mentioned format.

3. On disablement, only trading members who have been made eligible for close-out by the clearing members may be allowed to place close-out orders through this facility

4. Only orders which result in reduction of existing open positions at a client level shall be accepted through the close-out facility

5. Trading members shall not be allowed to create any fresh position in the close-out mode

6. Trading members shall not be allowed to place close out orders with custodial participant code

7. Trading members shall not be allowed to do trade modifications while in close-out mode

Further, this facility does not dilute the powers of the Clearing Corporation to close-out under its Bye-Laws, Regulations and Circulars.

Item 13

SETTLEMENT FUND

In pursuance of Chapter XII of the Byelaws, administration of, contributions to, the Settlement Fund for the Futures and Options Segment and charges for utilisation of the same are specified herein.

13.1 Settlement Fund

A separate Settlement Fund shall be maintained in respect of the Futures and Options Segment.

The utilisation of Settlement Fund towards settlement obligations shall be in accordance with deals 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:

Settlement obligation arising out of any deal where in the opinion of Clearing Corporation or the Exchange, there is 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 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 Exchange and/ or Clearing Corporation.

13.2 Contribution towards Settlement Fund

Clearing members are required to provide initial deposits to the settlement fund as specified hereunder:

Clearing members who are corporate/firms/individuals are required to keep cash deposit with Clearing Corporation of Rs.25 lakhs and a deposit of Rs.25 lakhs in such form and manner as may be specified by the Clearing Corporation from time to time.

Clearing members, clearing and settling deals on behalf of other trading members, shall make additional deposit of Rs.10 lakhs for each trading member.

The deposit requirements currently specified are summarized as under:

Constitution of Clearing Member	Cash Deposit (Rs. Lakhs)	Deposit in the form of approved collaterals (Rs. Lakhs)
Corporate /Firms/Individuals	25	25
For each trading member whose deals clearing members undertake to clear and settle	2	8

\

13.3 Penal charges for utilisation of settlement fund

In the event of a clearing member failing to meet his obligations to the Clearing Corporation, the Clearing Corporation may, at its discretion, utilise the settlement fund to the extent and in such manner as necessary.

The 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 until the day all obligations including shortfall in deposits are fulfilled.

Item 14

CLIENT MARGIN REPORTING

In pursuance of Regulation 4.6 of the Futures and Options Segment, provisions relating to Client margin reporting are prescribed as under:

Client Margin Reporting:

Members are required to collect initial margins from their client/constituents on an upfront basis. It is mandatory for all clearing /trading members to report details of such margins collected to the Clearing Corporation in accordance with the procedure and formats specified hereunder or as may be specified by the Clearing Corporation from time to time:

14.1 Files to be submitted by the member

The name of the file to be uploaded by the trading member in the extranet server is F_MRG_TM_<DDMMYYYY>_nn.CSV and that by the clearing member is F_MRG_CM_<DDMMYYYY>_nn.CSV

where:

<DDMMYYYY> is the trade date

and ‘nn’ is the batch number of the file

The files are required to be uploaded in the following directory on the extranet server:

/FAOFTP/F<MEMBERCODE>/COLAT/UPLD

where MEMBER CODE is the 5 digit trading member code of the member. (eg. 09999)

Members are requested to take note of the following whilst uploading the client margin reporting files:

1. Member are not required to provide member code in the file name
2. Members are required to provide batch number in every file they upload starting with 01. Thereafter subsequent files are required to have incremental batch numbers viz 02, 03 etc up to maximum of 99. This would enable members to send multiple files for the same trade date with incremental batch numbers. Multiple files may be sent by the member upto two working days after the trade date. Where multiple files are uploaded by the members for a client/constituent/trading member for a trade day, the information of client margin collected as provided in the file with latest batch number for the trade date would be considered as final by the Clearing Corporation.
3. If a member uploads a file with incorrect name, such files shall not be picked up by the Clearing Corporation. However, in order to facilitate members to ascertain file upload failure, the same file shall be renamed as “<filename>.failed” in the respective member folder (Path: /FAOFTP/F<MEMBER CODE>/COLAT/UPLD). Members are requested to check for such files in the member folder on the extranet and reload the file with the correct file name convention.
4. If a member uploads a file with zero bytes, such files shall not be picked up by the Clearing Corporation. However, in order to facilitate members to ascertain file upload failure, the same file shall be renamed as “<filename>.failed” in the member folder (Path: /FAOFTP/F<MEMBER CODE>/COLAT/UPLD). The member shall also be provided a return file (Path: /FAOFTP/F<MEMBER CODE>/COLAT/DNLD) which is a “FAILURE” file. Members are requested to check for such files in the member folder on the extranet and reload the fresh file with the same batch number.
5. In case the files are made by customised software at user end, members may note that a new line character has to be present in the last record in order to ensure proper processing.
6. Members are requested to refer to the return file every day for the short reporting of margins and initiate necessary corrective actions to ensure that the margins are collected and reported upfront.

Members may note the following procedure for providing client margin details:

1. Each row of the margin file MG12/MG13 provides the details of margins for a specific trading member/constituent /client code, as per the code entered by the members at the time of order entry.
2. Members are required to add a comma and the margin amount collected figure at the end of each row (for each trading member/client/constituent) in the file representing the actual initial margin amount collected from that trading member/client/constituent as the case may be.
3. This figure for initial margin amount collected, appended by the member should not be negative.
4. Members are required to ensure that no information provided in the file is modified. Any modification shall result in such record being rejected by the Clearing Corporation.

14.2 Return files to the members

A return file shall be generated for all files uploaded by the members for client margin reporting with the correct naming convention.

The return file for member shall be placed in the extranet directory /FAOFTP/F<MEMBER CODE>/COLAT/DNLD.

The return file would be provided on succeeding working day, after the file is loaded. In case of any errors in the file, the members would be able to correct the same and upload the same on the extranet server with incremental batch number anytime prior to Trade date +2 working days.

Two types of return files are generated for the members

1. Rejected Files - where the whole file has been rejected
2. Processed File Records - where some or all records in the file have been rejected

1. Rejected Files –

File Naming convention: F_MRG_TMF_MEMBERCODE_<DDMMYYYY>_nn.CSV for trading members and F_MRG_CMF_MEMBERCODE_<DDMMYYYY>_nn.CSV for clearing members

Some reason for which a file may be rejected are mentioned as under

File loaded after the sign off date - Members are allowed to upload client margin reporting file up to T+2 working days. Such files would be rejected with the reason “File is not being processed as file upload date is greater than sign off date”.

File loaded for future date - If the member uploads the file for September 12, 2008 on September 11, 2008, then the return file would indicate the rejection reason as ‘File is not being processed as file date is greater than system current date’.

Member uploads file for an invalid day - If a member is not required to report the client margin file for a day (say Saturday, Sunday, holiday etc.) and still uploads the same, then the return file would be rejected with the message ‘File is not being processed as the member code is invalid for the file date’.

Member uses non-serial batch number in file name - If the batch number provided by the member for a trade date is not in sequence, for example if the member has uploaded two files for the trade date September 12, 2008 with file names F_MRG_TM_12092008_01.CSV and F_MRG_TM_12092008_03.CSV, the second file would be rejected with error message ‘File is not being processed as file batch number is not proper. Last successful batch no for the day was 01’.

File in wrong format - If the member has provided a file which cannot be read by the system for example- non csv file, then return file would be rejected with the message ‘File is not being processed as the file is not in format’.

2. Processed File Records –

File Naming Convention: F_MRG_TMR_MEMBER CODE_<DDMMYYYY>_nn.CSV for trading members and F_MRG_CMR_MEMBER CODE_<DDMMYYYY>_nn.CSV for clearing members

After processing of client margin file, each record would have a reason code indicating acceptance/ rejection, as the case may be. The details of reason codes are as follows:

Reason Code	Description
01	Record size does not match for e.g. extra comma in the record
02	Date in record does not match with file date
03	Record is altered i.e. matching record does not exist in MG-13/MG-12 file. Possible error in date/ client code/ margin amount
04	Record pertains to proprietary position for trading member
05	Record pertains to proprietary position for clearing member
06	Margin amount collected is negative or non numeric.
07	Insufficient Margin
08	Sufficient Margin

• For reason codes 01 to 06, the difference amount, would not be indicated in the return file. However for reason codes 07 and 08, the difference amount would be indicated.
• If the record contains multiple errors for e.g. reason code 01 as well as 06, the reason code which is the lowest in number would appear against the record i.e. reason code 01.

14.3. Sign-off date

The cut off day upto which a member may report client margin details to the Clearing Corporation is referred to as the sign off date. It shall be 2 working days after the trade date.

14.4. Non-reporting/ non submission of client margin:

All instances of non-reporting of client margins by the members shall be treated similar to and as 100% short reporting of client margins and accordingly penalties shall be imposed.

14.5 Penalty for short / non-reporting of client margin:

Penalty shall be levied in case of short/ non-reporting by trading/clearing member as per Item 15.

14.6 Letters for penalty

Letters for client margin penalty and reprimand letters shall be downloaded to the members through extranet into their respective folders. (Path: /FAOFTP/F<MEMBER CODE>/LETTERS/DNLD)

14.7 No Margin Liability

Clearing/trading members who have no margin liability i.e. both initial margin and exposure margin is zero, shall not receive any margin file. If the clients of clearing / trading member do not have any margin liability i.e where both initial margin and exposure margin is zero for a client, such clients shall not be reflected in MG 12 and MG 13 files.

14.8 Statement of account of settlement & client margin

Clearing / trading members are required to collect upfront margins from their respective trading members/constituents. In this respect, every clearing /trading member is required to send a complete statement of account for settlements and margins as reported in the client margin files submitted to the Clearing Corporation in respect of trading member/constituents in such periodicity as specified by the Exchange/Clearing Corporation from time to time. The clearing/trading members are required to obtain confirmation from the trading member /constituents/clients on an on going basis and preserve such records for presentation to the relevant authority.

Item 15

VIOLATIONS AND PENALTY

In pursuance of Bye-law 16 of Part B of Chapter VI pertaining to Clearing and Settlement of deals and Chapter VIII of the Bye-laws pertaining to Margins and Chapter 4 of the Regulations, the following requirements are prescribed

15.1 Violation

Non-compliance of any provisions of the Rules, Bye-laws and Regulations by any clearing / trading member shall be treated as a violation and shall attract appropriate action under the Rules, Bye-laws and Regulations of the Clearing Corporation, against such clearing / trading member. Violations shall be treated to have been committed ipso facto.

Notwithstanding the generality of the above provisions, violations in relation to any member may, inter-alia, shall be as specified hereunder or as may be specified from the relevant authority from time to time.

15.1.1 Non fulfilment of initial margin obligations

When the initial margin liability of a clearing member exceeds his effective deposit less minimum liquid networth or the initial margin liability of a trading member exceeds the initial margin limit specified by his clearing member, at any time, including during trading hours it shall be treated as a violation

In the event of a violation, the Clearing Corporation may advise the Exchange to withdraw any or all of the membership rights of the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members. In case of violation by trading member the Clearing Corporation may advise the Exchange to withdraw trading facilities of the trading member.

Additionally, penalty and penal charge as mentioned in 15.1.6 shall be levied for Non fulfilment of initial margin obligations

15.1.2 Non-fulfilment of settlement obligation

Non-fulfilment of settlement obligation towards settlement of futures and options contracts by the scheduled date and time shall be treated as a violation.

In case of a settlement shortage of Rs. 5 lakhs or more the Clearing Corporation may advise the Exchange to withdraw any or all of the membership rights of the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members.

In case of settlement shortage of less than Rs.5lakhs the amount of shortage shall be blocked from the effective deposits of the clearing member to the extent of funds shortage. This may lead to the withdrawal of the trading facility of the clearing member and the associated trading member.

Further, if the clearing member is short for an amount of Rs 2 lakhs or more in six or more occasions in the preceding three months, the Clearing Corporation may advise the Exchange to withdraw any or all of the membership rights of the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members.

In case of any over-night settlement shortages a penal charges of 0.07% per day of shortage shall be levied

15.1.3 Non-fulfilment of minimum deposit requirements.

Any failure on the part of a clearing member to meet with the minimum deposit requirements as given in Item 8, at any point of time, shall be treated as a violation.

In case of shortage in minimum deposit requirements of Rs.5 lakhs or more the Clearing Corporation may advise the Exchange to withdraw any or all of the membership rights of the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members.

In case of shortage in minimum deposit requirement of less than Rs.5lakhs the clearing member shall require to replenish the shortfall immediately but in any case not later than one week. In case the shortfall is not replenished for a period of more than one week, the Clearing Corporation may advise the Exchange to withdraw any or all of the membership rights of the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members

In addition to the above, penal charges of 0.07% per day on the amount of shortages shall be levied.

15.1.4 Exposure margin violation

When the exposure margin of a clearing member exceeds his liquid net worth, at any time, including during trading hours it shall be treated as a violation.

In the event of a violation, the Clearing Corporation may advise the Exchange to withdraw any or all of the membership rights of the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members.

Additionally, penalty and penal charge as mentioned in 15.1.6 shall be levied for exposure margin obligations

15.1.5 Trading member wise position limit violation

When the open position of any trading member, exceeds the limit specified as per item 10 above at any time, including during trading hours, it shall be treated as a violation. In case of violation the Clearing Corporation may advise the Exchange to withdraw trading facilities of the trading member.

Additionally, penalty as mentioned in 15.1.6 shall be levied for trading member wise position limit violation

15.1.6 Penalty and penal charges for margin/limit violation

In respect of violation mentioned in point 15.1.1, 15.1.4 and 15.1.5 penalty for margin / limit violation shall be levied on a monthly basis based on slabs as mentioned below or such other amount as specified by the Clearing Corporation from time to time

Instances of Disablement	Penalty to be levied
1st instance	0.07% per day
2nd to 5th instance of disablement	0.07% per day + Rs.5,000/- per instance from 2nd to 5th instance
6th to 10th instance of disablement	0.07% per day + Rs.20,000/- ( 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.10,000/- 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.

15.1.6 FII/Mutual Fund position limit violation

When the open position of any FII/Mutual Fund, exceeds the limit specified as per item 11 above at the end of the day the same shall be treated as a violation. In case of violation the Clearing Corporation may advise the Exchange to withdraw the facility granted to such FII /MF to take any fresh positions in any derivative contracts. A penalty of Rs. 5000/- or such other sum, as may be specified by the Clearing Corporation from time to time, shall be levied for each violation. The penalty amount shall be debited to the clearing account of clearing member on the next business day.

15.1.7 Client wise/NRI/sub account of FII/scheme of MF position limit violation:

When the open position of any Client/NRI/sub-account of FII/scheme of MF, exceeds the limit specified as per item 10 and 11 at the end of the day the same shall be treated as a violation.

In the event of violation, the following penalty would be charged to the clearing members for every day of violation:

1% of the value of the quantity in violation (i.e., excess quantity over the allowed quantity, valued at the closing price of the security in the normal market of the Capital Market segment of the Exchange) per client or

Rs.1,00,000 per client, whichever is lower, subject to a minimum penalty of Rs.5,000/- per violation / per client.

When the client level/NRI/sub-account of FII/scheme of mutual fund violation is on account of open position exceeding 5% of the open interest, a penalty of Rs.5000 per instance shall be levied to the clearing member.

The concerned clearing / trading member may in turn recover such amount of penalty from the concerned clients who committed the violation and became liable therefore.

15.1.8 Violations arising out of mis-utilisation of trading member/constituent/client

collaterals and/ or deposits

When a clearing member utilises the collateral of one trading member and/ or constituent towards the exposure and/ or obligations other than for the same trading member and/ or constituents the same shall be treated as a violation.

15.1.9 Violation of exercised positions

When the option contracts are exercised by a clearing member, where no open long positions for such clearing / trading member and/ or constituent existed, at the end of the day, at the time the exercise processing is carried out, the same shall be treated as a violation.

15.1.10 Non-fulfilment of Capital Cushion requirement

Non-fulfilment of capital cushion requirements by the scheduled date shall be treated as violation. The penalty as applicable for violation of non-fulfilment of settlement obligation or such other penalty as specified by the Clearing Corporation from time to time shall be levied.

15.1.11 Short / non-reporting of client margin

The following penalty shall be levied in case of short reporting by trading/clearing member per instance. The amount of penalty shall vary as per the percentage of short reporting done by members as indicated below:

Percentage of short reporting ( in terms of value)	Penalty per instance
<1%	Nil
>1% but less than or equal to 10%	Reprimand Letter with no penalty
>10% but less than or equal to 20%	Rs.500 or 0.05% of the shortage amount whichever is higher subject to maximum of Rs.50000
>20% but less than or equal to 100%	Rs.1000 or 0.1% of the shortage amount whichever is higher subject to maximum of Rs.100000

 All instances of non-reporting shall amount to 100% short reporting and the penalty as applicable shall be charged on these instances in respect of short reporting.

Additionally in respect of members who have reported short collection of margins / not reported margin collections, on more than three occasions in any calendar month, their penalties computation from the fourth instance onwards shall be escalated by a multiple as mentioned below

Category	Multiple
More than 10% to 49.99%	1.1
50% to 79.99%	1.2
80% to100%	1.3

15.1.12 Market wide Position Limit violation

The procedure for monitoring market wide position limit as specified in Item 10 above shall be as under:

• At the end of each day the Clearing Corporation shall test whether the market wide open interest for any security exceeds 95% of the market wide position limit for that security. If so, the note of open position of all client/ trading members as at the end of that day in that security shall be taken, and from next day onwards the client/ trading members shall trade only to decrease their positions through offsetting positions till the normal trading in the security is resumed.
• The normal trading in the security shall be resumed only after the open outstanding position comes down to 80% or below of the market wide position limit
• The dissemination of market wide position limits shall be given at regular interval or such other duration as may be decided by the relevant authority from time to time.
• At the end of each day during which the ban on fresh positions is in force for any security, when any member or client has increased his existing positions or has created a new position in that security the client/trading members shall be subject to a penalty 1% of the value of increased position subject to a minimum of Rs.5000 and maximum of Rs.100000. The positions, for this purpose, shall be valued at the underlying close price
• The penalty shall be recovered from the clearing member affiliated with such trading members/clients on a T+1 day basis along with pay-in. The amount of penalty shall be informed to the clearing member at the end of the day.

15.2 Compliance towards violations

Clearing members, who have violated any requirement and/ or limits as specified in the Rules/ Bye-laws and Regulations, may reduce their open position as per the facility provided by the Clearing Corporation or submit a written request to the Clearing Corporation to either reduce their open position or, bring in additional collateral deposits by way of cash or bank guarantee or FDR or securities in electronic form (demat securities) in accordance with the provisions specified.,.

15.3 Effect of violations

In the event of a violation, 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 the clearing member including the withdrawal of trading facilities of all trading members and/ or clearing facility of custodial participants clearing through such clearing members, without any notice.

In addition, the outstanding positions of such clearing member and/ or trading members and/ or constituents, clearing and settling through such clearing member, 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 clearing member without any notice to the clearing member and/ or trading member and/ or constituent, and such action shall be final and binding on the clearing member and/ or trading member and/ or constituent. Clearing Corporation may initiate such other risk containment measures as it deems fit with respect to the open positions of the clearing member and/ or trading member and / or constituent.

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.

Item 16

ADJUSTMENTS FOR CORPORATE ACTIONS

In pursuance of Bye-law 12 of Part B of Chapter VI of the Bye-laws pertaining to Clearing and Settlement of deals, Regulation 5A5 of Chapters 5A of the Regulations, the following provisions for adjustment of open positions, in all derivative contracts on individual securities, for corporate actions are prescribed:

16.1. Adjustment for Corporate Actions

The basis for any adjustment for corporate action shall be such that the value of the position of the market participants on cum and ex-date for corporate action shall continue to remain the same as far as possible.

16.2. Time of Adjustment

Any adjustment for corporate actions shall be carried out on the last day on which a security is traded on cum basis in the underlying equities market, after the close of trading hours.

16.3. Adjustment

Adjustments shall mean modifications to positions and / or contract specifications as listed below such that the basic premise of adjustment laid down under 16.1 above is satisfied:

a) Strike Price

b) Position

c) Market Lot / Multiplier

The adjustments shall be carried out on any or all of the above, based on the nature of the corporate action. The adjustments for corporate actions shall be carried out on all open, exercised as well as assigned positions.

16.4. Corporate actions to be adjusted

The corporate actions may be broadly classified under stock benefits and cash benefits. The various stock benefits declared by the issuer of capital are:

• Bonus
• Rights
• Merger / De-merger
• Amalgamation
• Splits
• Consolidations
• Hive-off
• Warrants, and
• Secured Premium Notes (SPNs) among others.
• Extraordinary dividends

16.5. Methodology for adjustment

The methodology to be adopted for adjustment of corporate actions to be carried out shall be as follows:

16.5.1 Bonus, Stock Splits and Consolidations

• Strike Price: The new strike price shall be arrived at by dividing the old strike price by the adjustment factor as under.

• Market Lot / Multiplier: The new market lot / multiplier shall be arrived at by multiplying the old market lot by the adjustment factor as under.

• Position: The new position shall be arrived at by multiplying the old position by the adjustment factor as under.

The adjustment factor for Bonus, Stock Splits and Consolidations is arrived at as follows:

16.5.1.1 Bonus

Ratio - A : B

Adjustment factor : (A+B)/B

16.5.1.2 Rights

Number of Existing shares = A

Rights Entitlement

(Rights to subscribe) = B

Total Entitlement = A+B

Underlying close price on the last cum date = P

Issue price of the rights = S

Benefits per share = E

Benefit per Right Entitlement = (P – S)

E = (P-S)/(A+B)

Adjustment Factor is = (P-E)/P

Dividend if any, declared by the company along with rights shall be adjusted as per the prevailing dividend adjustment policy in F&O Segment.

16.5.1.3 Stock Splits and Consolidations

Ratio - A : B

Adjustment factor : A/B

16.5.2 Adjustment in case of fractions

The above methodology may result in fractions due to the corporate action e.g. a bonus ratio of 3:7. With a view to minimising fraction settlements, the following methodology shall be adopted:

1. Compute value of the position before adjustment

2. Compute value of the position taking into account the exact adjustment factor

3. Carry out rounding off for the strike price and market lot

4. Compute value of the position based on the revised strike price and market lot

The difference between 1 and 4 above, if any, shall be decided in the manner laid down by the relevant authority by adjusting strike price or market lot, so that no forced closure of open position is mandated.

16.5.3 Merger

• On announcement of the record date for merger, the last cum-date for merger would be determined by the Exchange/ Clearing Corporation. The date of expiration of all contracts in the underlying which shall cease to exist subsequent to the merger, shall be the last cum date, which shall be informed to the members.
• Pursuant to the announcement of the record date, no fresh month contracts on Futures and Options would be introduced in the underlying which shall cease to exist, subsequent to the merger.
• Un-expired contracts in the underlying, which shall cease to exist subsequent to the merger, outstanding as on last cum-date shall be compulsorily settled at the settlement price. The settlement price shall be the last available closing price of such underlying in the Capital Market segment of National Stock Exchange, on the last cum-date.

16.5.4 Dividends

Dividends which are below 10% of the market value of the underlying stock, would be deemed to be ordinary dividends and no adjustment in the strike price would be made for ordinary dividends.

For extra-ordinary dividends, above 10% of the market value of the underlying security, the strike price would be adjusted.

16.5.5 Other corporate actions

The relevant authority may, on a case by case basis, carry out adjustments for other corporate actions in conformity with the above guidelines, including compulsory closing out, where it deems necessary.

Any change and/ or modification in the methodology for adjustments of futures and option contracts on individual securities, from the methodology detailed above, shall be notified by the Clearing Corporation from time to time

ITEM 17

CONSOLIDATED LIST OF FILES/REPORTS DOWNLOADED TO MEMBERS IN THE F&O SEGMENT

List of Files/ Reports and their formats downloaded by the Clearing Corporation in the F&O segment is provided hereunder:

1. Detailed Contracts Reports (CN01)

2. Detailed Trades Report for Trading Member (TR01)

3. Detailed Trades Report for Clearing Member (TR02)

4. Security Transaction Tax Report for Trading Member (STT01)

5. Security Transaction Tax Report for Clearing Member (STT02)

6. Detailed Position File for Trading Members (PS03)

7. Detail Position File for Clearing Member (PS04)

8. Exercise Report for Trading Member (EX01)

9. Exercise Report for Clearing Member (EX02)

10. Assignment reports for Trading Members (AS01)

11. Assignment reports for Clearing Members (AS02)

12. Bank Report for Next Day Obligations (BK01)

13. Bank Summary Report for Clearing Member (BK02)

14. Bank Transaction Report for Clearing Member (BK03).

15. Margin Statement for Clearing Member (MG09)

16. Margin Statement for Trading Member (MG10)

17. Margin payable statement for Clearing Member (MG11)

18. Detailed Margin File for Clearing Member (MG12)

19. Detailed Margin File for Trading Member (MG13)

20. Details of Collaterals submitted by Clearing Member (CL01)

21. Details of turnover of Trading Members for each month ( TMTO)

22. Span Risk Parameter Files

23. Portfolio Files

The file formats for these Files/Reports are detailed below:

1 Contracts Report (CN01)

Naming convention: F_CN01_DDMMYYYY.CSV.gz for all the members

Location: /FAOFTP/FAOCOMMON/MARKETREPORTS

File details and format:

Field Name

Contract Date

Contract Instrument Type

Symbol

Expiry Date

Strike Price

Option Type

Corporate Action level

Contract Regular Lot

Contract Issue Start Date

Contract Issue Maturity Date

Contract Exercise Start Date

Contract Exercise End Date

Contract Exercise Style

Contract Active Market Type

Contract Open Price

Contract High Price

Contract Low Price

Contract Close Price

Contract Settlement Price

Contract Underlying Price

Contract Underlying Instrument Type

Contract Underlying Symbol

Contract Underlying Series

Contract Underlying Expiry Date

Contract Underlying Strike Price

Contract Underlying Option Type

Contract Underlying Corporate Action Level

2. Trades Report (TR01 and TR02)

Naming convention:

F_TR01_<MEMBER CODE>_DDMMYYYY.CSV.gz for the trading member F_TR02_<MEMBER CODE>_DDMMYYYY.CSV.gz for the clearing member

Location: FAOFTP/F<MEMBER CODE>/REPORTS.

File details and format:

Trade Number

Trade Date

Activity Type

Market Type

Instrument Type

Symbol

Expiry Date

Strike Price

Option Type

Corporate Action level

Buy Broker

Sell Broker

Trade Price

Trade Date Time

Trade Volume

Trade Token No

Trade Buy Branch

Buy CM Code

Sell CM Code

Trade Sell Branch

Buy Custodial Participant

Buy Side Confirmation

Sell Custodial Participant

Sell Side Confirmation

Buy Covered Uncovered Flag

Sell Covered Uncovered Flag

Buy Old Custodial Participant

Buy Old CM Code

Sell Old Custodial Participant

Sell Old CM Code

Trade Buyer

Trade Seller

Buy Order No

Sell Order No

Buy Account No

Sell Account No

Buy Remarks

Sell Remarks

Buy Position

Sell Position

Buy Proprietor Client Flag

Sell Proprietor Client Flag

Control Flag

Trade Execution Date Time

For the Field Description Trade Number, Buy/Sell Order Number the field length shall be 16 digits. In addition to this all reports where trade number, buy/sell order numbers are used the field length shall be 16 digits. Members are requested to note that when opening .csv files in excel, the sixteenth digit will get rounded off. Due care, therefore, needs to be taken when reading and saving these files in excel. Further, in case of excel macro or other tools, the data-type for handling order / trade number should be suitably defined.

3. STT file for clearing member:

Naming convention

F_STT02_<MEMBER CODE>_DDMMYYYY.CSV

Location: FAOFTP/F<MEMBER CODE>/REPORTS.

File details and format:

Control record type 10 – STT information at Clearing Member level

Record Type

STT date

Due Date of payment

Clearing Member Code

Total STT

Detail record type 20 – STT information at Trading Member level

Record Type

STT date

Trading Member Code

Total STT

Details record type 30 – STT information at Client level

Record Type

STT date

Trading Member Code

Trading client code

Total STTDetails record type 40 – STT information at client contract level for sale of contracts

Record Type

STT date

Trading Member Code

Trading Client Code

Instrument Type

Symbol

Expiry Date

Strike price

Option Type

CA level

Sell quantity

Sell value

Taxable sell value futures

Taxable sell value options

STT futures

STT options

Total STTDetails record type 50 – STT information at client contract level for exercise of contracts

Record Type

STT date

Trading Member Code

Trading Client Code

Instrument Type

Symbol

Expiry Date

Strike price

Option Type

CA level

Exercise quantity

Exercise value

Taxable Exercise value

STT options

Total STT

4. STT file for trading member:

File naming convention

F_STT01_<MEMBER CODE>_DDMMYYYY.CSV

Location: FAOFTP/F<MEMBER CODE>/REPORTS.

File details and format:

Control record type 10 – STT information at Trading Member level

Record Type

STT date

Trading Member Code

Total STTDetails record type 20 – STT information at Client level

Record Type

STT date

Trading Member Code

Trading client code

Total STTDetails record type 30 – STT information at client contract level for sale of contracts

Record Type

STT date

Trading Member Code

Client Code

Instrument Type

Symbol

Expiry Date

Strike price

Option Type

CA level

Sell quantity

Sell value

Taxable sell value futures

Taxable sell value options

STT futures

STT options

Total STTDetails record type 40 – STT information at client contract level for exercise of contracts

Record Type

STT date

Trading Member Code

Trading Client Code

Instrument Type

Symbol

Expiry Date

Strike price

Option Type

CA level

Exercise quantity

Exercise value

Taxable Exercise value

STT options

Total STT

5. Detailed position file for trading members (PS03)

Naming convention of the Position File: F_PS03_<MEMBER CODE>_DDMMYYYY.CSV.gz for the trading member.

File location: directory /FAOFTP/F<MEMBER CODE>/REPORTS.

File details and format:

• The file is generated for each trading member for all contracts in which any client or the member has either a brought forward position or an open positions on that day.
• The file is in a comma separated file format (CSV).
• The file would contain details up to Client Level.
• The individual field descriptors of the file are detailed hereunder:
• The values stored in Post Exercise Quantity are arrived at after taking into account the exercise / assigned quantity.

FIELD NAME DESCRIPTOR

1. Position Date Date

2. Segment Indicator 'F' for F&O segment

3. Settlement Type 'F' for Futures/ 'O' for Index Options/ 'S' for Options on securities etc.

4. Clearing Member Code CM Code

5. Member Type 'M' for TM/ 'C' for CP.

6. Trading Member Code TM Code / CP Code

7. Account Type 'P' for proprietary/ 'C' for client etc.

8. Client Account / Code Client Account No. / Code

9. Instrument Type FUTIDX / OPTIDX / OPTSTK etc.

10. Symbol NIFTY / RELIANCE / CNXIT etc.

11. Expiry date Contract expiry date

12. Strike Price '0' for Futures Contracts

13. Option Type 'FF'/ 'CA'/'CE'/'PA'/'PE'

14. CA Level '0' for Futures Contracts / Number

15. Brought Forward Long Quantity B/F long quantity

16. Brought Forward Long Value B/F value for long futures positions/ 0 for options

17. Brought Forward Short Quantity B/F short quantity

18. Brought Forward Short Value B/F value for short futures poisitions/0 for options

19. Day Buy Open Quantity Quantity purchased today

20. Day Buy Open Value Value of purchased quantity

21. Day Sell Open Quantity Quantity sold today

22. Day Sell Open Value Value of sold quantity

23. Pre Ex / Assgn Long Quantity Net long quantity before exercise

24. Pre Ex / Assgn Long Value Net long value for futures (0 for options)

25. Pre Ex / Assgn Short Quantity Net short quantity before assignment

26. Pre Ex / Assgn Short Value Net short value for futures (0 for options)

27. Exercised Quantity Total Valid exercised quantity / 0

28. Assigned Quantity Total Assigned quantity / 0

29. Post Ex / Assgn Long Quantity Sr. 23 - Sr. 27

30. Post Ex / Assgn Long Value Sr. 24 (0 for options)

31. Post Ex / Assgn Short Quantity Sr. 25 - Sr. 28

32. Post Ex / Assgn Short Value Sr. 26 (0 for options)

33. Settlement Price Calculated Value (1) detailed below

34. Net Premium Calculated Value (2) detailed below

35. Daily MTM Settlement Value Calculated Value (3) detailed below

36. Futures Final Settlement Value Calculated Value (4) detailed below

37. Exercised / Assigned Value Calculated Value (5) detailed below

Value 1: Settlement Price

• In case of futures contracts, which have not yet expired, the contract settlement price is provided. This price is used for the daily MTM settlement of futures contracts.
• In case of options contracts, which have not yet expired, the underlying settlement price is provided. This price is used for interim exercise settlement of option contracts.
• In case of future and options contracts, on the day of expiry of the contract, the underlying settlement prices are provided. This price is used for final MTM settlement of futures contracts and final exercise settlement of option contracts.

Value 2: Net Premium

• In case of futures contracts, the value is zero.
• In the case of options contracts, the value is the day's sell value minus the day's buy value.
• The value is provided with the appropriate sign convention Payable (-)/Receivable (+).
• The value represents premium settlement amount receivable or payable by the member.

Value 3: Daily MTM Settlement Value

• In case of futures contracts, which have not yet expired, the MTM settlement value is provided.
• In case of futures contracts, on the day of maturity of the contract, the value is zero. MTM settlement value for such contracts is provided as Value 4 detailed below.
• In the case of options contracts, the value is zero.
• The value is populated with the appropriate sign convention Payable (-)/ Receivable (+).

Value 4: Futures Final Settlement Value

• In case of futures contracts, which have not yet expired, the value is zero since it is provided as Value 3 detailed above.
• In case of futures contracts, on the day of expiry of the contract, the final MTM settlement value is provided.
• In the case of options contracts, the value shall be zero.
• The value is provided with the appropriate sign convention Payable (-)/ Receivable (+).

Value 5: Exercised / Assigned Value

• In the case of futures contracts, the value is zero.
• In the case of option contracts, which have not expired and which have been exercised, the Exercise value is computed as follows:
• For call options Exercise value = (settlement price - strike price) * exercised quantity (a positive value)
• For put options Exercise value = (strike price - settlement price) * exercised quantity (a positive value)
• In the case of options contracts, which have not yet expired and which have been assigned, the assigned value is computed as detailed below:
• For call options: Assigned value = (settlement price - strike price) * exercised quantity * (-1)
• For put options Assigned value = (strike price - settlement price) * exercised quantity * (-1)
• On expiry date of an option contract, all in-the-money long positions are treated as exercised positions and exercise value computed. Similarly all in-the-money short positions are treated as assigned positions and assigned value computed
• The field is populated with zero in case the contract is at / out of the money.
• The value is populated with the appropriate sign convention Payable (-)/ Receivable (+)

6. Detailed position file for clearing members (PS04)

Naming convention F_PS04_<MEMBER CODE>_DDMMYYYY.CSV.gz

File Location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

• The file structure for a CM is the same as for a TM as detailed above.
• The file is in a CSV file format structure.
• A clearing member who is clearing for a custodial participant shall get the same information as a trading member gets for his client.
• A Clearing Member who trades and also clears for others shall get two files, one as a trading member containing the details of his own clients and one as a clearing member containing the details of all his Trading members, on whose behalf he is clearing/ settling.
• No clearing member file is generated for a member who is a Self Clearing Member. For such a member, only one file (TM file as mentioned above) is generated.
• The file for a clearing member shall NOT be at client level.
• A clearing member gets the details for each trading member for whom he is clearing but not individual clients of the trading member. Thus for a clearing member, the client account / code field is zero. The file contains the summation at account type level. Thus, for a Clearing member there shall be only two records for a contract one at the proprietary level and the other at client level.
• The member code in the case of a clearing member is the primary member code of the clearing member.

7. Exercise report for trading /clearing members (EX01 and EX02)

Naming convention:

F_EX01_<MEMBER CODE>_DDMMYYYY.CSV.gz for the trading member F_EX02_<MEMBER CODE>_DDMMYYYY.CSV.gz for the clearing member

File location: /FAOFTP/F<MEMBER CODE>/REPORTS.

File details and Format:

Date

Exercise Number

Exercise Date

Clearing Member Code

Member Type

Member Code

Account Type

Client Account Code

Settlement Type

Instrument Type

Symbol

Expiry Date

Strike Price

Option Type

Corporate Action Level

Market Type

Requested Quantity

Exercise Type

Exercise Style

Final Exercise Type

Exercise / Do Not Exercise Flag

Remarks

Acceptance Flag

Rejected Quantity

Rejection Reason

Valid Exercise Quantity

Settlement Price (underlying close price of the security)

Value (Settlement Price x Valid Exercise Quantity)

8 Assignment report for trading/clearing members (AS01 & AS02)

File Naming convention:

F_AS01_<MEMBER CODE>_DDMMYYYY.csv.gz for the trading member

F_AS02_<MEMBER CODE>_DDMMYYYY.csv.gz for the clearing member

File Location Extranet directory /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

Assignment Date

Segment Indicator

Assigned Clearing Member Code

Assigned Member Account Type

Assigned Member Type
Assigned Member Code
Assigned Client Account Code

Settlement Type
Instrument Type
Symbol
Expiry Date
Strike Price
Option Type
Corporate Action Level
Assigned Quantity

Assignment Type (whether on account of interim or final exercise)

Settlement Price (underlying close price of the security)

Value (Settlement price x Assigned quantity)

9. Bank report for next day obligations (BK01)

Naming convention: F_BK01_<MEMBER CODE>_DDMMYYYY_DD.CSV.gz

File Location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

• Net Debit or Credit transaction for various settlements like Mark to Market, Premium, and Exercise etc
• Break up of above into the debit or credit transaction for the respective settlement i.e. Mark to Market, Premium, and Exercise.

Transaction Received Date

Transaction Code

Transaction Number

Description

Debit Amount

Credit Amount

10. Bank summary report for clearing member (BK02)

Naming convention: F_BK02_<MEMBER CODE>_DDMMYYYY.CSV.gz for the clearing member.

File Location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

Field Name

Summary Transaction Number

Description

Transaction Code

Debit/Credit

From Account Number

To Account Number

Sum Amount

11. Bank transaction report for clearing member (BK03)

Naming convention: F_BK03_<MEMBER CODE>_DDMMYYYY.CSV.gz for the clearing member.

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

Summary Transaction Number

Segment Indicator

Bank Transaction Received Date

Transaction Code

Description

Debit/Credit

Original Amount

Amount Due

Amount Received

Amount Short

12. Margin statement for clearing member (MG09)

Naming convention: - F_MG09_<MEMBER CODE>_DDMMYYYY.LIS.gz

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

Sr. No

TM/CP Code

Initial Margin

Premium Margin

Total Margin

Assignment margin

This report gives margin summary for the clearing member code across all his TM/CPs.

13. Margin statement for trading member (MG10)

Naming convention: - F_MG10_<MEMBER CODE>_DDMMYYYY.LIS.gz

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

Sr. No

Proprietary/ Client

Initial Margin

Premium Margin

Total Margin

This report gives margin summary for the TM/CP code across with his account types.

14. Margin payable statement for clearing member (MG11)

Naming convention - F_MG11_<MEMBER CODE>_DDMMYYYY.LIS.gz

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

1. CAPITAL

1. Total Cash Capital

2. Total Non-Cash Capital

3. Total Capital (A1 + A2)

4. Cash Component Required (%)

5. Effective Deposits [Min (A1/A4, A3)]

6. Non-usable Non-cash Capital (A3 - A5)

2. MARGIN INFORMATION

7. Minimum Liquid Net Worth

8. Initial Margin Amount

9. MTM Value

10. Effective Deposits Required For Initial Margin (B7 + B8)

11. Effective Deposits Required For MTM value (B8 +B9)

12. Effective Deposit requirement for the Clearing Member [Higher of (B10, B11)]

3. TRANSACTION AMOUNT

13. Excess Effective Deposits Required (B12 –A5)

14. Minimum Free Deposit for Pay-in Transaction

15. Minimum Free Deposit for Pay-out Transaction

16. Additional Deposit Required

17. Daily Cash Margin Already Paid By the Member

18. Non-usable Non-cash Allocation

19. Cash Margin Payable(+)/Receivable(-)

This report gives the collateral and margin payable statement for a clearing member

15. Detailed margin file for clearing member (MG12)

Naming convention - F_MG12_<MEMBER CODE>_DDMMYYYY.LIS.gz

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

The file for a clearing member shall contain the following values

Trade date

Trading member /Custodial participant code

SPAN margin

Net buy premium

Total margin

Exposure margin

16. Detailed margin file for trading member (MG13)

Naming convention - F_MG13_<MEMBER CODE>_DDMMYYYY.LIS.gz

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

The file for a trading member shall contain the following values

Trade date

Client Code

SPAN margin

Net buy premium

Total margin

Exposure margin

17. Details of collaterals submitted by clearing member (CL01)

Naming convention F_CL01_MEMBER CODE_DDMMYYYY.LIS.gz

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

1. BASE CAPITAL

1.1 NSCCL Deposit (Amount deposited with NSCCL towards clearing membership requirement and towards deposit requirement for each trading member clearing and settling through the clearing member. Sum of 1.1.1 to 1.1.8)

1.1.1 Bank Guarantee (Annexure A)

1.1.2 Cash Deposit

1.1.3 Fixed Deposit Receipts (Annexure B)

1.1.4 Cash Mutual Fund

1.1.5 Non-cash mutual Fund

1.1.6 Government Securities

1.1.7 Foreign Securities

1.1.8 Security Deposit

1.2 NSEIL Deposit (Amount deposited with NSEIL towards trading membership requirement by trading members clearing and settling through the clearing member).

Total Base Capital (1.1 + 1.2)

2. ADDITIONAL BASE CAPITAL

2.1 Bank Guarantee (Annexure A)

2.2 Cash Deposit

2.3 Fixed Deposit (Annexure B)

2.4 Margin Amount Paid

2.5 VSAT Deposit

2.6 WDM Deposit

2.7 Cash Mutual Fund

2.8 Government Securities

2.9 Foreign Securities

2.10 Non-cash Mutual Fund

2.11 Security Deposit

Total Additional Base Capital (sum of 2.1 to 2.11)

3. TOTAL CAPITAL

4. EFFECTIVE DEPOSITS

4.1 Cash Component of Base Capital (1.1.1 + 1.1.2 + 1.1.3 +1.1.4 + 1.1.6+1.1.7+1.2)

4.2 Cash Component of Additional Base Capital (sum of 2.1 to 2.9)

4.3 Total Cash Component (4.1 + 4.2)

4.4 Non-cash Component of Base Capital (1.1.5+1.1.8)

4.5 Non-cash Component of Additional Base Capital (2.10 + 2.11)

4.6 Total Non-cash Component (4.4 + 4.5)

4.7 Effective Deposit (@50 percent cash component)

4.8 Total Blocked Amount (Annexure C)

4.9 Net Effective Deposit (4.7 - 4.8)

Annexure A:

Details of BC-Bank Guarantee:

Sr. No.

NSCCL Ref no.

BG. No

Issuing Bank

Issue Date

Maturity Date

Amount (Rs)

Details of ABC-Bank Guarantee:

Sr No

NSCCL Ref no.

BG. No

Issuing Bank

Issue Date

Maturity Date

Gross Amt. (Rs)

ADM block Amt. (Rs)

CPC Block Amt. (Rs)

Total Block Amt. (Rs)

Amt (Rs)

Annexure B:

Details of BC-Fixed Deposit:

Sr. No.

NSCCL Ref no.

FDR. No

Issuing Bank

Issue Date

Maturity Date

Amount (Rs)

Details of ABC-Fixed Deposit:

Sr No

NSCCL Ref no.

FDR. No

Issuing Bank

Issue Date

Maturity Date

Gross Amt. (Rs)

ADM block Amt. (Rs)

CPC Block Amt. (Rs)

Total Block Amt. (Rs)

Amt (Rs)

Annexure C:

Details of Total Blocked Amount:

Sr. No

Block Reason

Cash Amount(Rs)

Non-Cash Amount (Rs)

Annexure D:

Details of Collateral Release:

Sr. No.

Type

Collateral Type

NSCCL Ref No.

Custodian

Symbol

Quantity Released

Amount Released (Rs)

18. Details of turnover of trading members for each month (TMTO)

Naming convention F_TMTO_<MEMBER CODE>_Start Date_End Date.LIS.gz

File location: /FAOFTP/F<MEMBER CODE>/REPORTS

File details and format:

TM Code:

TM Name:

Period:

Report Date:

Month

Futures Turnover

Futures Final Settlement Value

Option Premium Amount

Exercised Strike Value

Assigned Strike Value

Total

Futures Turnover = Trade Quantity * Trade Price

Option Premium Amount = Trade Quantity * Trade Price

Exercised Strike Value = Exercised Quantity * Strike Price

Assigned Strike Value = Assigned Quantity * Strike Price

Futures Final Settlement = Futures Final Long Settlement Value + Futures Final Short Settlement Value

19. Daily SPAN Risk Parameter files

SPAN Risk Parameters files shall be generated based on the prices at 11:00 a.m., 12:30p.m., 2:00 p.m., 3:30 p.m., end of day and begin of day.

I. Span Risk Parameter File with scaled up margin (with look ahead days as 2) applicable to the Clearing Members who have not opted for MTM settlement on T+0 day.

a. Begin of day / Intra-day files

Naming convention nsccl.<YYYYMMDD>.inn.spn.gz

where <YYYYMMDD> represents the current system date

‘i’ represents intra day file and

‘nn’ represents intra day file batch number.

b. End of day file

Naming convention nsccl.<YYYYMMDD>.s.spn.gz

where <YYYYMMDD> represents the current system date

‘s’ represents end of the day file

II. Span Risk Parameter File with scaled down margin (with look ahead days as 1) applicable to the Clearing Members who have opted for MTM settlement on T+0 day.

a. Begin of day / Intra-day files

Naming convention nsccl.<YYYYMMDD>.inn_1.spn.gz

where <YYYYMMDD> represents the current system date

‘i’ represents intra day file and

‘nn’ represents intra day file batch number.

b. End of day file

Naming convention nsccl.<YYYYMMDD>.s_1.spn.gz

where <YYYYMMDD> represents the current system date

‘s’ represents end of the day file

File location:

Risk Parameter File : /FAOFTP/FAOCOMMON/ Parameter. The Risk Parameter file would also be available at the NSE Website at www.nseindia.com & Chicago Mercantile Exchange website : ftp://ftp.cme.com/pub/span/data/nse/ at the end of the day.

File details and format:

1. This shall be common for all members in the F&O segment, for each day.

2. File format shall be XML (Extended Markup Language)

20. Portfolio File

Naming Convention:

<MEMBER CODE>_<DDMMYYYY>_1.pos for trading member

<MEMBER CODE>_<DDMMYYYY>_2.pos for clearing member

File location: /FAOFTP/F<MEMBER CODE>/Portfolio

File details and format:

1. This file shall be a specific file for each member (clearing and trading), for each day.

2. File format shall be XML (Extended Markup Language).

3. The file shall be generated only once a day i.e. at the end of the day.

ITEM 18

LIST OF ANNEXURES

1. Format of Clearing member – Constituent (Custodial Participant) agreement
2. Format of letter for payment of daily mark to market on T+0 basis
3. Theoretical futures price calculation model
4. Statement of securities transaction tax for derivative
5. List of designated clearing banks and branches
6. Format of letter to be submitted by clearing member to clearing bank for operation of clearing account
7. List of banks approved for issuing bank guarantees and FDRs
8. Format of letter for submission of fixed deposit receipt towards security deposit to the Custodian
9. Format of letter to be given by the bank issuing the security deposit FDR to the Custodian
10. Format of letter for submission of fixed deposit receipt towards security deposit to Clearing Corporation
11. Format of letter to be given by the bank issuing security deposit FDR to Clearing Corporation
12. Format of bank guarantee
13. Format of Deed of pledge for clearing members for deposit of securities for security deposits
14. Format of Deed of pledge for other than clearing members for deposit of securities for security deposits
15. Format of letter for submission of fixed deposit receipt towards margin deposit to the Custodian
16. Format of letter to be given by the bank issuing the margin deposit FDR to the Custodian
17. Format of letter for submission of fixed deposit receipt towards margin deposit to Clearing Corporation
18. Format of letter to be given by the bank issuing the margin deposit FDR to the Clearing Corporation
19. Format of deed of pledge for clearing members for deposit of securities for margin deposit
20. Format of deed of pledge for other than clearing members for deposit of securities for margin deposit
21. Format of letter requesting activation of account in collateral interface for members application
22. Format of letter to be given by the clearing member for shifting of fixed deposit receipt from Capital market /Currency Derivatives segment to F&O segment
23. Format of letter to be given by the bank issuing the FDR to the Clearing Corporation on renewal (in case of auto renewal where the old FDR no. is same)
24. Format of letter to be given by the bank issuing the FDR to the Clearing Corporation on renewal (in case of auto renewal where the old FDR no. is changed)
25. Format of letter to be given by the clearing member for shifting of bank guarantee from Capital market/Currency Derivatives segment to F&O segment
26. Format of amendment letter to be given by the bank to the Clearing Corporation in case of shifting of bank guarantee from Capital market/Currency Derivatives segment to F&O segment
27. Format for renewal of bank guarantee towards margin deposit and security deposit
28. List of Approved Custodians
29. List of Approved Custodians for foreign sovereign securities
30. Format of Clearing member- NSCCL agreement for providing foreign sovereign securities as collateral
31. Format of Clearing member-FII agreement for providing foreign sovereign securities as collateral
32. Format of Indian Deed of pledge in favour of NSCCL for providing foreign sovereign securities as collateral
33. Format of New York Collateral Annex for providing foreign sovereign securities as collateral
34. Format of Account control agreement for providing foreign sovereign securities as collateral
35. Format of Clearing member- constituent agreement for clients providing foreign sovereign securities as collateral
36. Format of letter to be provided by clearing member for release of foreign sovereign securities
37. File format for requesting collateral releases
38. SPAN margin computation methodology.
39. Format of application from FII/sub-account of FII/MF/scheme of MF
40. Format of letter from clearing member for application of CP code
41. Format of no objection from the Custodian.
42. Format of no objection from the old clearing member in case of change of clearing member.
43. Format for application of shifting of CP code from the new clearing member
44. Format for application of shifting of CP code by the FII/sub-account of FII/MF/scheme of MF
45. Format of NRI client code application to be submitted by NRI to the clearing member
46. Format of application for allotment of custodian participant code for the NRI clients by the clearing member
47. Format of no objection certificate (NOC) to be submitted by existing clearing member in case of change in clearing member by the NRI client
48. Format of application of close out facility by clearing member

ANNEXURE 1

FORMAT OF CLEARING MEMBER – CONSTITUENT (CUSTODIAL PARTICIPANT) AGREEMENT

1) This agreement is made on this ___________ day of ______, 200_, between ______________, a company/ partnership firm/ individual having its registered office/ office/ residence at ___________________ registered as a Clearing Member (hereinafter called the Clearing Member) with National Securities Clearing Corporation Ltd. (hereinafter called “NSCCL”) which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) and __________________________, a company/ partnership firm/ individual having its registered office/ office/ residence at ___________________ (hereinafter called “the Constituent ”) which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns).

Whereas

1. The constituent is a(n) _______ and desires to effect purchase or sale of securities in the Futures and Options segment of the National Stock Exchange of India Ltd. (here in after called “NSEIL”) through more than one trading members of NSEIL and clear and settle such trades through Clearing member [who, in turn, agreed to clear and settle the trades executed by the constituent through a trading member or trading members], subject to the provisions contained in the Rules, Bye Laws and Regulations of NSCCL (Futures & Options Segment).

2. _______ is a Clearing Member of NSCCL and is, inter alia, authorised to carry on the activities of clearing and settlement of deals, which are executed on the Futures & Options Segment of NSEIL by the trading member [who has appointed the Clearing Member to clear and settle his deals] or on behalf of Constituents [who have appointed the Clearing Member to clear and settle their deals]

3. The Constituent has approached the Clearing Member to undertake clearing & settlement of deals and to discharge his duties and obligations towards NSCCL on his behalf and the Clearing Member, in turn, agreed to clear & settle the trades done by the constituent through a trading member or trading members subject to the provisions contained in the Rules, Bye Laws and Regulations of NSCCL (Futures & Options Segment) and the terms and conditions contained herein.

4. The parties to this agreement are desirous of reducing the terms and conditions agreed, in writing, as contained herein :

Now, therefore, this agreement witnesseth as FOLLOWS:

1. At the request of the Constituent and in consideration of the Constituent agreeing to pay certain fees and charges mentioned herein and abide by the terms and conditions contained in this agreement, Rules, Bye-Laws and Regulations of NSCCL and NSEIL, the Clearing Member hereby undertakes upon himself the obligations of clearing and settlement of the deals of the Constituent executed/ done, through one or more trading members, on the Futures & Options Segment of NSEIL and to do all the acts, deeds and activities arising from and/ or incidental to the clearing and settlement of such deals.

2. Rights of the Clearing Member

(1) The Clearing Member shall be entitled to demand/ receive from the Constituent such deposits in such form as he may specify from time to time.

(2) Without prejudice to the generality of the above, the Constituent shall place with the Clearing Member an amount of Rs.____ as deposit which shall be maintained at any point of time. Subject to the provisions of Bye Laws, Rules and Regulations of NSCCL/NSEIL, in case of any shortfall in such deposit, the Clearing Member shall be entitled to initiate any action necessary to protect his interests in this regard against the Constituent.

(3) The Clearing Member shall be entitled to receive such fees, charges, or commission, in respect of various services which he renders or agrees to render to the Constituent, from the Constituent at such intervals as may be mutually agreed upon.

(4) The Clearing Member shall specify, subject to the requirements prescribed by NSCCL from time to time, the exposure margins up to which open positions can be taken by the Constituent. Such limits may be increased or reduced by the Clearing Member from time to time. The Clearing Member shall have the authority to initiate any action necessary to protect his interests in this regard, which may, inter alia, include restriction on further trading and closeout of open positions of the Constituent.

(5) The Clearing Member shall be entitled to collect from the Constituent, margin(s) of such amounts of such kinds, as he may deem necessary, which at any point of time shall not be less than the amount stipulated by NSCCL from time to time. The Clearing Member shall have authority to collect such additional margin(s) as the Clearing Member may deem necessary or as per the requirement of NSCCL.

(6) The Clearing Member shall be entitled to receive from the Constituent such amounts as may be required to be paid towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, as per the requirement of NSCCL.

(7) The Clearing Member shall have authority to close out/ liquidate the open positions of the Constituent in accordance with the Rules/ Byelaws and Regulations of NSCCL, in the case of non-payment of dues by the Constituent towards margins, additional margins, daily mark to market settlement of futures contracts, final settlement of futures contract, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, fees, , commission and/ or charges, by making necessary requests to NSEIL/ NSCCL for initiating such action. In such case, any loss arising due to the closing out of open positions shall be payable by the constituent and will be recovered from the Constituent by the clearing member.

(8) The Clearing Member shall have the right to inspect the books of accounts, records, documents and computerised data of the Constituent for which the Clearing Member shall have free access to the premises occupied by the Constituent or by any other person on his behalf.

3. Obligations of the Clearing Member

(1) The money deposited by each Constituent shall be kept in a separate account by the Clearing Member, distinct from his own account and shall provide the details of margins collected for the trades executed by the constituent, to NSCCL as per the requirements of NSCCL. .

(2) The Clearing Member shall inform the Constituent about the exposure margins (including any increase or reduction in such limits) upto which open positions can be taken by the Constituent.

(3) The Clearing Member shall be liable to pay to the Constituent any amount becoming due and receivable by the constituent towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts and such other settlement as per the requirements of NSCCL.

(4) The Clearing Member shall be required to refund any excess margin money to the Constituent as per mutual agreement.

(5) The Clearing Member may settle the accounts on a periodical basis, if mutually agreed between the Clearing Member and the Constituent, which should be in accordance with the Byelaws, Rules & Regulations of NSCCL.

(6) In the event of default by the Clearing Member or his being declared a defaulter by NSEIL/ NSCCL, the amount paid by the Constituent and got deposited with NSCCL shall remain safe and shall not be utilised to meet the Clearing Member’s own liabilities and/ or the liabilities of his other Constituents. In such cases, the Clearing Member shall render all assistance to the Constituent for transfer of Constituent ’s positions to some other Clearing Member, if such event occurs.

(7) In the event of failure by the Clearing Member in the payment of any dues to the NSCCL as well as the Constituent, the Constituent shall, with the prior approval of NSCCL, have the right to transfer his own open positions immediately to another Clearing Member. The Clearing Member shall be obliged to pay to the Constituent for any costs incurred for transfer of the open positions, if such event occurs.

(8) In case the Clearing Member is declared a defaulter by NSEIL/ NSCCL, and the Constituent transfers his open positions to some other Clearing Member, the Clearing Member shall be obliged to pay for any costs incurred for transfer of the open positions.

(9) If due to the default of the Clearing Member, the open positions of the Constituents are closed-out and any loss is incurred due to such close-out, the Clearing Member shall reimburse such loss to all the Constituents except to the Constituents because of whom the Clearing Member has defaulted.

(10) The Clearing Member shall treat the information pertaining to the Constituent as confidential. The Clearing Member shall not disclose the same to any other person except to the governmental, statutory, regulatory or legal authorities on a request made by these authorities in writing.

(11) The Clearing Member shall be required to provide reports/ statements of mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of options contracts, exercise settlement of option contracts or such other settlement, margin amounts and open positions to the Constituent, for such period as may be mutually agreed.

4. Rights of the Constituent

(1) The Constituent shall be entitled to have all the deals, executed through any Trading Member or Trading Members on the Futures & Options Segment of NSEIL, cleared and settled through the Clearing Member.

(2) The Constituent shall be entitled to receive intimation from the Clearing Member about the exposure margins (including any increase or reduction in such limits) upto which open positions can be taken by the Constituent.

(3) The Constituent shall be entitled to receive reports/ statements of mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, margin amounts and open positions from the Clearing Member, for such period as may be mutually agreed.

(4) The Constituent shall be (liable) entitled to (pay to) receive from the Clearing Member such amounts towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts and such other settlement as per the requirement of NSCCL.

(5) In the event of the Clearing Member being declared a defaulter by NSCCL, the Constituent, except the Constituent because of whom the Clearing Member has defaulted, shall be entitled to transfer his open positions to some other Clearing Member and recover any costs incurred for such transfers from the Clearing Member.

(6) In the event of failure by the Clearing Member in the payment of any dues to NSCCL as well as the Constituent, the Constituent shall, with the prior approval of NSCCL have the right to transfer his own open positions immediately to another Clearing Member. The Constituent shall also have the right to recover from Clearing Member any costs incurred for transfer of the open positions.

(7) In case the open positions of the Constituents are closed-out due to the default of the Clearing Member, the Constituent, except the Constituents because of whom the Clearing Member has defaulted, shall be entitled to recover such loss from the Clearing Member.

5. Obligations of the Constituent

(1) The Constituent shall pay to the Clearing Member such deposits in such form as the Clearing Member may specify from time to time.

(2) Without prejudice to the generality of the above, the Constituent shall place with the Clearing Member an amount of Rs.____ as deposit which shall be maintained at any point of time. Subject to the provisions of Bye Laws, Rules and Regulations of the NSCCL/ NSEIL, the Clearing Member shall be entitled to initiate any action necessary to protect his interest in this regard against the Constituent.

(3) The Constituent shall pay to the Clearing Member such fees, charges, or commission in respect of various services which he renders or agrees to render to the Constituent at such intervals as may be mutually agreed upon by them.

(4) The Constituent shall pay to the Clearing Member margins of such amounts as may be prescribed by NSCCL from time to time including additional margins, if any or such higher amount of margins as may be mutually agreed with the Clearing Member. The margins shall be deposited by the Constituent within such time and in such form as may be specified by the Clearing Member.

(5) The Constituent shall be liable (entitled) to pay to (receive from) the Clearing Member such amounts towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts and such other settlement as per the requirement of NSCCL.

(6) The accounts shall be settled on a periodical basis as may be mutually agreed between the Clearing Member and the Constituent.

(7) The Constituent shall be obliged to reimburse to the Clearing Members any loss caused due to the closing out / liquidation of his open positions initiated by the Clearing Member, on account of non-payment of dues by the Constituent towards margins, additional margins, daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, fees, charges, commission, penalties and expenses, any other sum ,as per the requirement of NSCCL.

(8) The Constituent shall do all such acts, deeds and activities that are necessary for the purpose of strict compliance with the Rules, Bye Laws & Regulations of NSEIL/ NSCCL by the Clearing Member.

(9) If due to the default of the Constituent, the open position of the Constituent is closed-out and any loss is incurred due to such closeout, the Constituent shall be liable to reimburse such loss to the Clearing Member.

6. Termination of the Agreement

The agreement entered into between the Clearing Member and the Constituent may be terminated by the parties by giving at least one month written notice to the other party or as may be mutually consented. Such cancellation or termination shall not have any effect on transactions executed before the time and date of termination and the parties shall enjoy the same rights and shall have same obligations in respect of such executed transactions.

7. Notice

Any communication between the Clearing Member and the Constituent shall be made in any one or more of the following ways:

(a) an electronic mail or fax

(b) delivering it by post

(c) sending it by registered post

(d) sending it under certificate of posting

(e) sending it by express delivery post / courier services.

(f) sending it by telegram

(g) affixing it on the door at the last known business or residential address

(h) advertising it at least once in any prominent daily newspaper

8. Force Majeure

No liability shall result to either party for delay in performance or non-performance of the obligations under the agreement caused and/or contributed to by any event of force majeure. For purposes of this Clause, "Force Majeure" means and includes wars, insurrections, revolution, fires, floods, epidemic, quarantine restrictions, declared general strikes in relevant industries, act of God, act of governmental, statutory, regulatory or legal authority and such other acts or events beyond the control of the non-performing party.

9. No assignment

Neither party shall be entitled to assign or otherwise transfer this agreement or any benefits, rights, obligations or interests herein whether in whole or in part to any other agency without the prior written consent of the other.

10. Non-waiver

No forbearance, delay or indulgence by either party in enforcing the provisions of this Agreement shall prejudice or restrict the rights of that party nor shall any waiver of its rights operate as a waiver of any subsequent breach and no rights, powers, remedies herein conferred upon or reserved for either party is exclusive of any other right, power or remedy available to that party and each right, power or remedy shall be cumulative.

11. Arbitration

(1) All disputes, differences or questions arising out of or in relation to the agreement including the interpretation of the terms contained herein with regard to the obligations, failure or breach thereof by any of the parties and/or of any matter whatsoever arising out of the Agreement, shall in the first instance be resolved mutually by the parties.

(2) If the parties fail to resolve the same mutually, then the same shall be referred to the arbitration in accordance with the Rules, ByeLaws and Regulations of NSCCL.

12. Jurisdiction

This agreement shall be subject to the exclusive jurisdiction of the courts in ____.

IN WITNESS THEREOF, the parties to this agreement have caused these presents to be executed as of the day and year first above written.

Signed for and on behalf of

CLEARING MEMBER :

By :

Signature :

Title :

Witness :

Signed for and on behalf of

CONSTITUENT :

By :

Signature :

Title :

Witness :

ANNEXURE 2

FORMAT OF LETTER FOR PAYMENT OF DAILY MARK TO MARKET ON T+0 BASIS

Date:

To,

Manager

Clearing & Settlement (Futures & Options Segment)

National Securities Clearing Corporation Ltd

Bandra Kurla Complex,

Bandra East

Mumbai – 400 001

Dear Sir,

CM Code :

Sub Payment of Mark to Market Settlement on T+0 day

As per the facility provided by the Clearing Corporation we would like to opt for payment of daily mark to market settlement in the F&O Segment for the quarter ending …...

You are requested to enable the facility for us and accordingly not levy scaled up margins

.

Thanking you,

Yours sincerely

Authorised Signatories

CM Name :

CM Code :

Name:

Designation

ANNEXURE 3

THEORETICAL FUTURES PRICE CALCULATION MODEL

Theoretical futures price calculation model for Futures

The theoretical price of a futures contract shall be computed as per the following formula:

F = S * e ^rt

where:

F = theoretical futures price

S = value of the underlying index/individual security

r = rate of interest (MIBOR)

t = time to expiration

Rate of interest may be the relevant MIBOR rate or such other rate as may be specified.

Theoretical futures price calculation model for Interest rate Futures

Theoretical price for futures contracts on interest rate, wherever required, shall be computed as may be directed by relevant authority in this regard. Presently the theoretical price shall be the futures prices computed using the spot prices arrived at from the applicable ZCYC Curve.

The theoretical price of a futures contract shall be computed as per the following formula:

F = S * e ^rt

where :

F = theoretical futures price

S = Spot price arrived from the ZCYC Curve

r = rate of interest (MIBOR)

t = time to expiration

Rate of interest may be the relevant MIBOR rate or such other rate as may be specified.

ANNEXURE 4

STATEMENT OF SECURITIES TRANSACTION TAX FOR DERIVATIVES

Stock Exchange Stock Broker Name

Stock Broker Code Trading Client Name

Trading Client Code Trading Client MAPIN

Trading Client PAN Contract Note Date

Contract Note No

Serial No

Security

Expiry Date

Value of Transactions Futures Sale STT

Value of Transactions Options Sale STT

Value of Transactions Options Exercised STT

Total STT

TOTAL

For ____________________

Place:

Date: Authorised Signatory

ANNEXURE 5

LIST OF DESIGNATED CLEARING BANKS AND BRANCHES

Clearing Bank	Address	Contact Person & Numbers
Axis Bank Ltd.	Capital Market Division Jeevan Prakash Building Sir P.M. Road 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, 1^st Floor Homji Street Horniman Circle Fort , Mumbai - 400 001	Mr. Paratho Sarathi, Chief Manager Tel: 22693157, 22633006, 22658291 Fax: 22675650, 22670033
Citibank N.A.	CITI group center, 6^th 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 G Road, Fort, Mumbai - 400 001	Mr. Ritesh Jain, Vice President Tel: 22681175 / 22681690 Fax : 22734388
ICICI Bank Ltd.	Capital Market Division Mafatlal Chambers, ‘B’ wing, 3^rd 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.	Maneckji Wadia Building 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, 2^nd Floor, Nariman Point, Mumbai - 400 021	Mr.Kaushik Bagchi, Product Head Tel: 66552281 Mr. Ajay Thakur. Asst Manager Tel: 66977804 / 00
IndusInd Bank Ltd.	Sonawalla Building 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.	13^th floor, Nariman Bhavan, 227, Nariman Point Mumbai 400 021	Mr. Prasad Ramaswamy, Associate VP - Operations Tel: 66153065 Fax: 56563451
Standard Chartered Bank	5^th floor, Forbes Building, Charanjeet Rai Marg, Fort, Mumbai 400 001	Mr. Girish Bhatia, Associate Director Tel: 66314285
Union Bank of India	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 India	Mumbai Main Branch 1^st floor, International Banking Division, Mumbai Samachar Marg Mumbai 400 023	Mr. Doiphode, Asst. General Manager Tel: 22695272 Mr. A.B. Pote, Manager Tel: 22661765

The latest list of designated clearing banks and their contact details are available on the web-site, www.nseindia.com

ANNEXURE 6

FORMAT OF LETTER TO BE SUBMITTED BY CLEARING MEMBER TO CLEARING BANK FOR OPERATION OF CLEARING ACCOUNT

Date:

From:

[Clearing Member name and address]

To:

[Clearing bank name and address]

Sir/Madam,

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 as per the instructions received from the Clearing Corporation 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 of the clearing account 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 7

LIST OF BANKS APPROVED FOR ISSUING BANK GUARANTEES AND FDRS

Sr. No	Bank Name
1	ABN AMRO BANK NV
2	ALLAHABAD BANK
3	ANDHRA BANK
4	AXIS BANK LTD
5	BANK OF AMERICA NA
6	BANK OF BARODA
7	BANK OF INDIA
8	BANK OF MAHARASHTRA
9	BANK OF NOVA SCOTIA
10	BANK OF RAJASTHAN LTD
11	BARCLAYS BANK PLC
12	BNP PARIBAS
13	CANARA BANK
14	CENTRAL BANK OF INDIA
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 LTD
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 HYDERABAD
46	STATE BANK OF INDIA
47	STATE BANK OF INDORE
48	STATE BANK OF MYSORE
49	STATE BANK OF PATIALA
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 INDIA
56	UNITED BANK OF INDIA
57	VIJAYA BANK
58	YES BANK LTD

ANNEXURE 8

FORMAT OF LETTER FOR SUBMISSION OF FIXED DEPOSIT RECEIPT TOWARDS SECURITY DEPOSIT TO THE CUSTODIAN

Date :

To

Name & Address of custodian (F & O 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 alongwith the principal amount (FDR amount) payable.

Yours faithfully,

Authorised Signatory

________ Clearing Member name and – Clearing member ID

ANNEXURE 9

FORMAT OF LETTER TO BE GIVEN BY THE BANK ISSUING THE SECURITY DEPOSIT FDR TO THE CUSTODIAN

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 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 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, Delhi, Kolkata, Chennai, Ahmedabad and Hyderabad)

Yours faithfully,

Authorised Signatory

__________ Bank Ltd.

ANNEXURE 10

FORMAT OF LETTER FOR SUBMISSION OF FIXED DEPOSIT RECEIPT TOWARDS SECURITY DEPOSIT TO CLEARING CORPORATION

Date:

To

National Securities Clearing Corporation Ltd (F & O 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.(clearing member name) for Rs. ______/- (Rupees _____________________ only.)

I/We hereby agree and consent that you shall have an irrevocable authority to encash the said FDR and to withdraw the said FDR amount at any time, even prior to maturity, without notice to me/us for recovery/adjustment of NSCCL/NSEIL dues and we have no objections whatsoever for the same.

I/We agree that you may renew the FDR for period of one year each time till the FDR is released by you.

I/we agree that on the encashment of FDR, you will be entitled to the interest accrued on the said FDR and you are hereby authorised to receive the accrued interest from the Bank along with the principal amount (FDR amount) payable.

Yours faithfully,

Authorised Signatory

________ Clearing Member name and (Clearing member ID)

ANNEXURE 11

FORMAT OF LETTER TO BE GIVEN BY THE BANK ISSUING SECURITY DEPOSIT FDR TO CLEARING CORPORATION

Date:

To

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 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, Delhi, Kolkata, Chennai, Ahmedabad and Hyderabad )

Yours faithfully,

Authorised Signatory

______ Bank Ltd.

ANNEXURE 12

FORMAT OF BANK GUARANTEE

BG NO: __________________

Date: __________________

To:

National Securities Clearing Corporation Ltd

Exchange Plaza, Plot C-1, G Block,

Bandra Kurla Complex,

Bandra (East),

Mumbai – 400 051

Dear Sirs:

This guarantee bearing No. _________________________ is issued by ____________________________, a body corporate constituted under the___ Act, 19____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

1. 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 of shares and other securities of a value not less than Rs. _______ after applying suitable margins as prescribed by NSCCL, for Futures and Options 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)

Authorised Signatories

Seal of the Bank

*Strike out whichever is not applicable

Instructions:

The above printed format is required to be used.

1) Strike out / delete Security Deposit or Margin deposit whichever is not applicable in clause b

2) In case of margin deposit bank guarantee strike out / delete “of a value not less than Rs. _______” in clause b

3) 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

4) 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.

5) 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 13

FORMAT OF DEED OF PLEDGE FOR CLEARING MEMBERS FOR DEPOSIT OF SECURITIES 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 _________ 20___ by

_______________________________, S/o / d/o / w/o __________________ residing at _____________________ and having his office at ________________________________ *

_____________________________, a partnership firm registered under the Indian Partnership Act, 1932 and having its office at __________________________________*

________________________Ltd., incorporated as a company under the Companies Act, 1956 and having its registered office at _______________________________________*

(hereinafter referred to as "Clearing Member" which expression shall unless repugnant to the context thereof include successors, administrators and assigns) in favour of National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400 051 (hereinafter referred to as "NSCCL" which expression shall unless repugnant to the context thereof, include its successors and assigns).

WHEREAS

a) The Clearing Member is admitted to the Clearing Membership of Futures and Options segment of NSCCL.

b) One of the requirement of the clearing Membership is that the Clearing Member shall maintain with NSCCL security deposits in the form of cash, bank guarantees or securities for the due performance and fulfilment by him/it of his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member including any sums due by him/it to NSCCL or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.

c) The securities to be deposited by the Clearing Member shall be securities in dematerialised form and as may be approved by NSCCL from time to time to an extent of Rs. ________ /- (Rupees ________________ only) or of such value as may be specified by NSCCL from time to time.

d) The Clearing Members shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. In consideration of NSCCL having agreed to accept approved dematerialised securities as a security deposit to an extent of Rs.____________ /- (Rupees _______________________________ only), or of such value as may be specified by NSCCL from time to time, the Clearing Member hereby pledges securities (hereinafter referred to as "Said Securities" 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.

2. The Clearing Member if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Clearing Member may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Clearing Member confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which he/it owes as a Clearing Member.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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

a. The Clearing member in case of individual.

b. All partners in case of a Partnership firm

c. By any two of the following persons in the case of a Company:

i. Managing Director

ii. Whole-time Director

iii. Directors

ANNEXURE 14

FORMAT OF DEED OF PLEDGE FOR OTHER THAN CLEARING MEMBERS FOR DEPOSIT OF SECURITIES 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.

1) This Deed of Pledge (hereinafter referred to as “the Deed”) is executed at _______________ on this ___ day of _________ 20___ 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 (East), Mumbai – 400 051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).

WHEREAS

a) Mr/Ms _____________________ s/o / d/o / w/o ___________________ residing at ____________________________ and having his/her/their office at ________________________ (hereinafter referred to as the Clearing Member, which expression shall include his/its successors and assigns)*

M/s ____________________________ , a partnership firm registered under the Indian Partnership Act, 1932 and having their office at _______________________________________ (hereinafter referred to as the Clearing member, which expression shall include their successors and assigns)*

M/s ______________________________ Limited, incorporated as a company under the Companies Act, 1956 and having its registered office at ___________________ (hereinafter referred to as the Clearing member, which expression shall include its successors and assigns) *

is/are a Clearing member of Futures and Options Segment of the NSCCL.

b) One of the requirement of the Clearing Membership is that the Clearing Member shall maintain with NSCCL security deposits in the form of cash, bank guarantees or securities for the due performance and fulfilment by him/it of his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member including any sums due by him/it to NSCCL or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried on or entered into by him/it.

c) The securities to be deposited by the Clearing Member or any other person, as a security for such Clearing member shall be securities in dematerialised form and as may be approved by NSCCL from time to time to an extent of Rs. ___________/- (Rupees ______________________ only) or of such value as may be specified by NSCCL from time to time.

d) At the request of the Clearing member and as permitted by NSCCL, the Pledgor has agreed to offer securities in the dematerialised form as a security for the purpose of margin deposit requirement as aforesaid.

e) The Pledgor shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.

NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

1. In consideration of the NSCCL having agreed to accept approved dematerialised securities as a margin 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.

2. The Pledgor if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Pledgor may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Pledgor confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which the Clearing Member owes as a Clearing Member of NSCCL.

3. 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.

4. 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.

5. 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.

6. 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 margin deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a days time and also due to the nature of transactions on NSCCL.

7. 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.

8. 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.

9. 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.

10.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.

11.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.

12.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 /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.

13.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 Pledgor /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 within named

Pledgor

_______________________

In the presence of witnesses

1.

2.

*Strike out whichever is not applicable

ANNEXURE 15

FORMAT OF LETTER 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 (F &O 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 CM ID (Clearing member ID)

ANNEXURE 16

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, Delhi, Kolkata, Chennai, Ahmedabad and Hyderabad )

Yours faithfully,

Authorised Signatory

For __________ Bank Ltd.

ANNEXURE 17

FORMAT OF LETTER FOR SUBMISSION OF FIXED DEPOSIT RECEIPT TOWARDS MARGIN DEPOSIT TO CLEARING CORPORATION

Date:

To

National Securities Clearing Corporation Limited (F & O Segment)

Exchange Plaza,

Bandra Kurla Complex,

Bandra (E),

Mumbai - 400 051.

Dear Sir,

As per requirements of National Securities Clearing Corporation's (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 NSCCL A/c. (Clearing Member Name) for Rs. ______/- (Rupees ___________________________ only.)

I/We hereby agree and consent that you shall have an irrevocable authority to encash the said FDR and to withdraw the said FDR amount at any time, even prior to maturity, without notice to me/us for recovery/adjustment of NSCCL/NSEIL dues and we have no objections whatsoever for the same.

I/We agree that you may renew the FDR for periods 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 ID (Clearing member ID)

ANNEXURE 18

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 Limited

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 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, Delhi, Kolkata, Chennai, Ahmedabad and Hyderabad)

Yours faithfully,

Authorised Signatory

For__________ Bank Ltd.

.

ANNEXURE 19

FORMAT OF DEED OF PLEDGE FOR CLEARING MEMBERS FOR DEPOSIT OF SECURITIES FOR MARGIN DEPOSIT

To Be Executed On Non Judicial Stamp Paper Of Rs 100/- Or In Accordance With The Prevailing Rates Applicable In The Place Of Execution, Whichever Is Higher.

This Deed of Pledge (hereinafter referred to as “the Deed”) is executed at _______________ on this ___ day of _________ 20___ 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 (East), Mumbai – 400 051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).

WHEREAS

a) The Clearing Member is admitted to the Clearing Membership on the Futures and Options segment of NSCCL.

b) One of the requirement of the clearing Membership is that the Clearing Member shall maintain with NSCCL margin 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 out or entered into by him/it.

c) The securities to be deposited by the Clearing Member shall be securities in dematerialised form and as may be approved by NSCCL from time to time to an extent of Rs. ________ /- (Rupees ________________ only) or of such value as may be specified by NSCCL from time to time.

d) The Clearing Members shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. In consideration of NSCCL having agreed to accept approved dematerialised securities as a margin 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 fulfilment by him/it of all engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or National Stock Exchange of India Limited (hereinafter referred to as “NSEIL”) or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it.

2. The Clearing Member if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Clearing Member may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Clearing Member confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which he/it owes as a Clearing Member.

3. 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.

4. 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.

5. 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 margin deposit either in their existing form or as modified/changed/altered /amended from time to time pursuant to requirement/ compliance of Clearing Membership.

6. If in the opinion of NSCCL, the Clearing Member has failed to perform and / or fails to fulfil his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member of NSCCL including any sums due by him/it to NSCCL or to NSEIL or to any other party arising out of or incidental to any contracts made, executed, undertaken, carried out or entered into by him/it, then the Clearing Member agrees that NSCCL on giving one working day notice to the Clearing Member on its own as a pledgee, shall be empowered/entitled to invoke the pledge, sell, dispose of or otherwise effect any other transfer of the Said Securities in such manner and subject to such terms and conditions as it may deem fit and that the money if any realised from such pledge/sale/disposal/or other transfer shall be utilised/disbursed by NSCCL in such manner and subject to terms and conditions as it may deem fit and further the Clearing Member shall do all such things, deeds, acts and execute all such documents as are necessary to enable NSCCL to effect such pledge/sale/disposal/or other transfer. The decision of NSCCL as to the obligations or liabilities or commitments of the Clearing Member and the amount claimed shall be final and binding on the Clearing Member. The Clearing Member understood and agrees that one working day notice mentioned above shall be deemed to be a reasonable notice, as this pledge of securities is being accepted as margin deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a days time and also due to the nature of transactions on NSCCL.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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 within named **

Clearing Member.

________________________

In the presence of witnesses

1.

2.

* Strike out whichever is not applicable

** To be signed by

a. The Clearing member in case of individual.

b. All partners in case of a Partnership firm

c. By any two of the following persons in the case of a Company:

i. Managing Director

ii. Whole-time Director

iii. Directors

ANNEXURE 20

FORMAT OF DEED OF PLEDGE FOR OTHER THAN CLEARING MEMBERS FOR DEPOSIT OF SECURITIES 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.

1) This Deed of Pledge (hereinafter referred to as “the Deed”) is executed at _______________ on this ___ day of _________ 20___ 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 (East), Mumbai – 400 051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).

WHEREAS

a) Mr/Ms _____________________ s/o / d/o / w/o ___________________ residing at ____________________________ and having his/her/their office at ________________________ (hereinafter referred to as the Clearing Member, which expression shall include his/its successors and assigns)*

M/s ____________________________ , a partnership firm registered under the Indian Partnership Act, 1932 and having their office at _______________________________________ (hereinafter referred to as the Clearing member, which expression shall include their successors and assigns)*

M/s ______________________________ Limited, incorporated as a company under the Companies Act, 1956 and having its registered office at ___________________ (hereinafter referred to as the Clearing member, which expression shall include its successors and assigns) *

is/are a Clearing member of Futures and Options Segment of the NSCCL.

b) One of the requirement of the Clearing Membership is that the Clearing Member shall maintain with NSCCL margin deposits in the form of cash, bank guarantees or securities for the due performance and fulfilment by him/it of his/its engagements, commitments, operations, obligations or liabilities as a Clearing Member including any sums due by him/it to NSCCL or any other party as decided by NSCCL arising out of or incidental to any contracts made, executed, undertaken, carried on or entered into by him/it.

c) The securities to be deposited by the Clearing Member or any other person, as a security for such Clearing member shall be securities in dematerialised form and as may be approved by NSCCL from time to time to an extent of Rs. ___________/- (Rupees ______________________ only) or of such value as may be specified by NSCCL from time to time.

d) At the request of the Clearing member and as permitted by NSCCL, the Pledgor has agreed to offer securities in the dematerialised form as a security for the purpose of margin deposit requirement as aforesaid.

e) The Pledgor shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.

NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

1. In consideration of the NSCCL having agreed to accept approved dematerialised securities as a margin 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.

2. The Pledgor if so determined by NSCCL shall place the Said Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition may be apparent and indisputable notwithstanding the fact that the Pledgor may be permitted to have access to the Said Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Pledgor confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which the Clearing Member owes as a Clearing Member of NSCCL.

3. 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.

4. 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.

5. 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, for its Clearing Members.

6. 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 margin deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a days time and also due to the nature of transactions on NSCCL.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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 /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.

13. 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 Pledgor /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 within named

Pledgor

________________________

In the presence of witnesses

1.

2.

* Strike out whichever is not applicable

ANNEXURE 21

FORMAT OF LETTER REQUESTING ACTIVATION OF ACCOUNT IN COLLATERAL INTERFACE FOR MEMBERS APPLICATION

Date:

The Manager

Collaterals Department

NSCCL

Dear Sir/ Madam,

Sub: Activation of account in Collateral Interface for Members Application

We are interested in availing the facilities provided through the Collateral Interface for Members 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.	Member Code
2.	Member Name
3.	Segment for which application is being made (Cash/F&O/Currency Derivatives)
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.	No of User Ids required
10.	E-mail address

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,

Authorised Signatory

Name:

Designation:

Note:

1. Since the CIM application is common for both the CM 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. 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 22

FORMAT OF LETTER TO BE GIVEN BY THE CLEARING MEMBER FOR SHIFTING OF FIXED DEPOSIT RECEIPT FROM CAPITAL MARKET/CURRENCY DERIVATIVES SEGMENT TO F&O 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 Futures & Options Segment

Member Code: ____________

Bank Name : ______________

Fixed Deposit Receipt No : ______________

Fixed Deposit Receipt Amount : ______________

Issue Date : ______________

Maturity Date : ______________

We refer to the above FDR issued on our behalf in your favour towards the *margin deposit / security deposit of the Capital Market/Currency Derivatives* segment of National Securities Clearing Corporation Ltd. (NSCCL). As we intend to make the said FDR available towards our *margin deposit /security deposit in the Futures & Options 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 Futures & Options 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 Futures & Options segment of NSCCL.

Yours faithfully,

Authorised Signatory

* Strike out whichever is not applicable and the same should be authorised by the authorised signatory

ANNEXURE 23

FORMAT OF LETTER TO BE GIVEN BY THE BANK ISSUING THE FDR TO CLEARING CORPORATION ON RENEWAL (In case of Auto-renewal where the Old FDR No. is same)

To Date:

National Securities Clearing Corporation Ltd

Exchange Plaza, C-1, Block G,

Bandra Kurla Complex,

Bandra (East)

Mumbai 400 51

Dear Sir,

We refer to the fixed deposit receipt (FDR) issued, in the name of NSCCL - A/c (clearing member's name). Details are as under.

FDR No

Issue Date

Amount

Maturity Date

The above FDRs has been renewed for further period of _____months under the autorenewal facility on the request of the TM. Details are as follows.

Renewal Date

Amount

New Maturity Date

We hereby confirm that

1. There is no lock in period for encashment of the said FDR.
2. 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).
3. Encashment whether premature or otherwise would not require any clearance from any other authority / person.
4. We agree that on encashment of FDR, the interest accrued will also be released to you.
5. We agree that the FDR will be renewed for such periods as per the instructions of the Clearing Corporation
6. The FDR is payable at Mumbai. (In case FDR is issued from places other than Mumbai, Delhi, Calcutta, Chennai, Ahmedabad, and Hyderabad)
7. Old instrument will remain valid.

Yours faithfully,

Authorised Signatory

__________ Bank Ltd

ANNEXURE 24

FORMAT OF LETTER TO BE GIVEN BY THE BANK ISSUING THE FDR TO CLEARING CORPORATION ON RENEWAL (In case of Auto renewal where the Old FDR No. is changed)

To Date:

National Securities Clearing Corporation Ltd

Exchange Plaza,C-1, Block G,

Bandra Kurla Complex,

Bandra (East)

Mumbai 400 51

Dear Sir,

We refer to the fixed deposit receipt (FDR) issued, in the name of NSCCL - A/c clearing member's name. Details are as under.

FDR No

Issue Date

Amount

Maturity Date

The above FDRs 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

1. There is no lock in period for encashment of the said FDR.
2. 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).
3. Encashment whether premature or otherwise would not require any clearance from any other authority / person.
4. We agree that on encashment of FDR, the interest accrued will also be released to you.
5. We agree that the FDR will be renewed for such periods as per the instructions of the Clearing Corporation.
6. The FDR is payable at Mumbai. (In case FDR is issued from places other than Mumbai, Delhi, Calcutta, Chennai, Ahmedabad, and Hyderabad)
7. Old instrument will remain valid and no new instrument with new FDR No._____ is issued.

Yours faithfully,

Authorised Signatory

__________ Bank Ltd

ANNEXURE 25

FORMAT OF LETTER TO BE GIVEN BY THE CLEARING MEMBER FOR SHIFTING OF BANK GUARANTEE FROM CAPITAL MARKET/CURRENCY DERIVATIVES SEGMENT TO F& O SEGMENT

(To be typed on Member’s letter head)

To Date :

National Securities Clearing Corporation Ltd.

Collaterals Department,

Exchange Plaza, Plot C-1, G Block,

Bandra Kurla Complex,

Bandra (East),

Mumbai - 400 051.

Dear Sir,

Re: Bank Guarantee for Rs. _____vide BG No.____for Futures & Options Segment

Member Code: ____________

Bank Name : ______________

Bank Branch : ______________

City : ______________

Bank Guarantee No : ______________

Bank Guarantee Amount : ______________

Issue Date : ______________

Maturity Date : ______________

Last Claim date : ______________

We refer to the above Guarantee issued on our behalf in your favour towards the margin deposit of the Capital Market/Currency Derivative segment of National Securities Clearing Corporation Ltd. (NSCCL). As we intend to make the said bank guarantee available towards our margin deposit in the Futures & Options 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 Futures & Options 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 Futures & Options 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 Futures & Options segment of NSCCL.

Yours faithfully,

Authorised Signatory

ANNEXURE 26

FORMAT OF AMENDMENT LETTER TO BE GIVEN BY THE BANK TO CLEARING CORPORATION IN CASE OF SHIFTING OF BANK GUARANTEE FROM CAPITAL MARKET/CURRENCY DERIVATIVES SEGMENT TO F&O SEGMENT

(ON STAMP PAPER OF THE SAME VALUE AS THE ORIGINAL BANK GUARANTEE OR RS. 100/= WHICHEVER IS HIGHER)

To, Date: ___________

National Securities Clearing Corporation Limited

Exchange Plaza,

Plot C-1, G Block,

Bandra Kurla Complex, Bandra (East),

Mumbai - 400 051

We,_______________________________ having our registered office at ________________________________________________________________________ refer to the Bank Guarantee number: ____________ executed by us on the ___________ day of _______________ at _____________ (hereinafter referred to as "Said Guarantee") on behalf of __________________________ (hereinafter referred to as “Clearing Member”) having its registered office at ____________________________________ 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 fulfillment 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 Futures & Options 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 Futures & Options 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)

AUTHORISED SIGNATORIES

SEAL OF THE BANK

ANNEXURE 27

FORMAT FOR RENEWAL OF BANK GUARANTEE TOWARDS MARGIN DEPOSIT AND SECURITY DEPOSIT

Date : ___________

To,

National Securities Clearing Corporation Ltd.

Exchange Plaza, Plot C-1, G Block,

Bandra Kurla Complex,

Bandra (East),

Mumbai – 400 051.

We, ____________________________________________ (Bank) having our registered office at _____________________________________________________________and our branch office at ______________________________________________________ _______________________________ refer to the Bank Guarantee number : _________ executed by us on the ___________ day of _______________ 199_/200_ at __________ (hereinafter referred to as “said guarantee”) on account of Mr. / Ms./ M/s. ____________ ________________________ having his/her/ its/registered office at ________________ _______________________________________________________________________ (hereinafter referred to as a ‘Clearing Member’) for a sum of Rs ______________ (Rupees _________________________________________only) in your favour.

The validity of the said guarantee was upto ____________________________.

With reference to the same we state as hereunder:

At the request of the Clearing Member, we extend the period of the validity of the said guarantee upto __________________.

The said guarantee may be invoked by NSCCL in part(s) without affecting its rights to invoke the said guarantee for any liabilities that may devolve later.

Notwithstanding anything mentioned herein above,

a) the liability of the Bank under this guarantee shall not exceed Rs. _______________ (Rupees ________________________________________ only)

b) This guarantee shall be valid for a period of _____months i.e. upto _____________.

c) The bank is liable to pay the guaranteed amount only if NSCCL serves upon the Bank a written claim or demand on or before ________________(i.e. within ___ months after the date of expiry of the bank guarantee as mentioned in clause b above).

We hereby affirm and confirm that save and except to the extent as provided for herein above, the said guarantee together with all other terms and conditions therein shall remain operational and in full force and effect till _________________________.

Executed this ____day of____________ at _____________ (place).

FOR ________________________________(BANK)

________________________________(BRANCH)

AUTHORISED SIGNATORIES

SEAL OF THE BANK

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 28

LIST OF AUTHORISED DEPOSITORY PARTICIPANTS/ CUSTODIANS

1 HDFC Bank Ltd.

Mr. Anu Khandelwal / Ms. Swapna Sawant

Custody Services,

Kamala Mills Compound,

Senapati Bapat Marg,

Lower Parel, Mumbai - 400 013

Phone Nos : 24961616 /24910492

Fax : 24961636 / 24901169/ 24929722 / 24910456

2 Stock Holding Corporation of India Ltd. (SHCIL)

Mr. Ganesh Zodge / Mr. Vinod

DP Operations (Pledge - NSCCL Margin)

44 / 1, Mehra Estate,L B S Marg,

Near Vikroli Station,

Vikroli (West)

Mumbai 400 079

Phone Nos. : 25795247

Fax : 67988329

3 ICICI Bank Ltd

Mr. Nagesh Srivastava / Mr. Yogesh Gadgill

Securities Market Services,

Empire Complex, 1st Floor

414 Senapati Bapat Marg

Lower Parel, Mumbai 400 013

Phone Nos: 66672005/66672736

Fax No : 66672740

ANNEXURE 29

LIST OF APPROVED CUSTODIANS FOR FOREIGN SOVEREIGN SECURITIES

Deutsche Bank, New York

Contact Person : Scott Habura/ Floris Vreedenburgh

60 Wall Street, New York, NY. 10005

Phone: 001-212-250-9078 /001-212-250-3723

Fax 001-212- 797-0510

Deutsche Bank, Mumbai

Contact Person : Mr. Rashid Contractor

Floor 5, Nicholas Piramal Tower,

Peninsula Corporate Park, Ganpatrao Kadam Marg

Lower Parel, Mumbai, India

Phone: 0091-22-67063542

ANNEXURE 30

FORMAT OF CLEARING MEMBER- NSCCL AGREEMENT FOR PROVIDING FOREIGN SOVEREIGN SECURITIES AS COLLATERAL

This CLEARING MEMBER – NSCCL AGREEMENT (this “Agreement”) is made as of this ____ day of _____ 2008 between NATIONAL SECURITIES CLEARING CORPORATION LTD., a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 (“NSCCL”, which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns), and [INSERT NAME OF CLEARING MEMBER], a company / partnership firm / individual having its registered office / office / residence at _________________ that is registered as a clearing member with NSCCL (hereinafter called the “Clearing Member”, which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns)

WHEREAS

1) Reserve Bank of India (RBI), vide its Circular No. 2 dated 19^th July 2007, has permitted Foreign Institutional Investors (“FIIs”) to offer foreign sovereign securities as collateral. Pursuant to the said Circular, the Securities and Exchange Board of India (SEBI), vide its Circular No. SEBI/DNPD/Cir-32/2007 dated 11^th September 2007, has permitted the Clearing Member to accept foreign sovereign securities with a ‘AAA’ rating (such foreign sovereign securities, together with any profits, dividends, interest, distributions or other proceeds thereof, and any security entitlements or other indirect holding interests in respect of any and all of the foregoing, shall be collectively referred to herein as “Foreign Securities”) as collateral from its FII clients for Exchange Traded Derivative Transactions. However, SEBI has stipulated that before accepting sovereign securities as collateral from the FII, the Clearing Member shall enter into a written agreement with NSCCL.

2) Therefore, the parties are desirous of entering into this agreement in order to facilitate the offering and tendering of Foreign Securities by the Clearing Member as collateral to NSCCL, subject to the terms and conditions as contained herein:

NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS FOLLOWS:

1) This Agreement shall be subject to the Rules, Byelaws, Regulations of NSCCL and Circular issued by NSCCL from time to time. This Agreement shall further be subject to the terms and conditions of the Deed of Pledge for Clearing Members for Margin Deposits dated as of ___________________, 2008, between NSCCL and Clearing Member, including all annexes (including, without limitation, the New York Collateral Annex), supplements and exhibits thereto (as amended from time to time, collectively, the “Pledge Agreement”), except to the extent otherwise provided herein.

2) NSCCL shall accept Foreign Securities offered and tendered as collateral from the Clearing Member subject to the following conditions:

a) Foreign Securities as specified by NSCCL from time to time pursuant to the directions of SEBI shall be accepted. The Foreign Securities shall satisfy the terms and conditions as specified by SEBI / NSCCL. The Clearing Member further agrees to be bound by and abide with the Circulars issued by NSCCL from time to time with regard to acceptance of Foreign Securities including the procedure for acceptance or release of the Foreign Securities as collateral.

b) The Clearing Member shall be entitled to collect from each of its FII clients (hereinafter a “Constituent”) margin in the form of Foreign Securities to such extent as permitted by NSCCL.

c) The Clearing Member shall enter into an agreement with each of its Constituents in the format prescribed by NSCCL in addition to the agreement prescribed by NSCCL which is required to be entered into by the Clearing Member and Constituent viz. Clearing Member and Custodian Participant Agreement (hereinafter called as “Custodial Participant Agreement”) for the purpose of clearing and settling the trades made by the Constituent through a trading member or members, subject to the provisions contained in the Rules, Byelaws and Regulations of NSCCL (Futures & Options Segment).

d) The Clearing Member shall be entitled to deliver the Foreign Securities in compliance with the margin requirements of NSCCL as specified from time to time for the trades cleared and settled by the Clearing Member on behalf of the Constituent by following such procedure as may be prescribed by NSCCL in this regard.

e) The Foreign Securities tendered by the Constituent in compliance with the margin requirements of NSCCL shall be returned to the Clearing Member by NSCCL in accordance with the terms of the Pledge Agreement unless otherwise specified in the Circulars issued by NSCCL in this regard.

f) The Foreign Securities tendered by the Constituent in compliance with the margin requirements of NSCCL shall be returned by the Clearing Member to the Constituent in accordance with the terms of the Custodial Participant Agreement.

g) The Clearing Member agrees that in the event of a default by the Clearing Member or the Constituent, NSCCL shall be entitled to deal with the Foreign Securities tendered by the Clearing Member on behalf of the Constituent by liquidating, selling or otherwise disposing of the Foreign Securities or by retaining them in full or partial satisfaction, as the case may be, of obligations owing to NSCCL. The Clearing Member agrees that the Foreign Securities shall be dealt with by NSCCL in accordance with its Rules, Byelaws, Regulations and circulars issued by it from time to time.

h) The Clearing Member agrees that the Foreign Securities delivered to NSCCL are available for liquidation, sale or other disposition, or retention, by NSCCL in the event of the Clearing Member’s insolvency/bankruptcy/winding up or in the event of the insolvency or bankruptcy/ winding up of the Constituent or in the event of the insolvency or bankruptcy/ winding up of the person located outside of India through whom the Foreign Securities are held.

i) This Agreement shall be governed by and construed in accordance with the laws of India as shall be in effect from time to time, including, without limitation, any bye-laws, rules, regulations, circulars and instructions of NSEIL and NSCCL and any rules, regulations, circulars and instructions of Government of India or any branch, agency or subdivision thereof, the Securities and Exchange Board of India and the Reserve Bank of India. In the event of any dispute between NSCCL and the Clearing Member in connection with this Agreement, including with respect to the liquidation, retention or return of Foreign Securities, the same shall be subject to the exclusive jurisdiction of the courts in India provided, however, that nothing contained herein shall prohibit or preclude the bringing of any action or exercise of remedies by NSCCL (in each case at its election made in its sole discretion) for the purpose of preserving or enforcing its rights and interests with respect to any Foreign Securities under the laws of, and, if applicable, before the courts or other competent tribunals in, any other relevant jurisdiction. Any such action or exercise of remedies by NSCCL shall be non-exclusive and without prejudice to any rights and remedies NSCCL may be entitled to exercise in the courts of India under Indian law or otherwise.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

IN WITNESS THEREOF, the parties to this Agreement have caused these presents to be executed as of the day and year first above written.

Signed for and on behalf of

NSCCL

By

Signature

Title

Witness

Signed for and on behalf of

CLEARING MEMBER

By

Signature

Title

Witness

Instructions:

1) The above printed format is required to be used.

2) The agreement is to be stamped for Rs.100/- or the value prevailing in the State where executed, whichever is higher. Agreement is 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 member along with the signature of the authorised signatory

ANNEXURE 31

FORMAT OF CLEARING MEMBER-FII AGREEMENT FOR PROVIDING FOREIGN SOVEREIGN SECURITIES AS COLLATERAL

This CLEARING MEMBER - CONSTITUENT (FII) AGREEMENT (this “Agreement”) is made as of this ____ day of _____ 2008 between [INSERT NAME OF CM], a company / partnership firm / individual having its registered office / office / residence at _________________ (hereinafter called the “Clearing Member”, which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) that is registered as a Clearing Member with National Securities Clearing Corporation Ltd. (hereinafter called “NSCCL”, which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) of the ONE PART and [INSERT NAME OF FII], a company / corporate established or incorporated under _______ Act and having its registered office / office at _____________ (hereinafter called “Constituent”, which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) of the OTHER PART.

WHEREAS,

1) The Constituent desires to effect purchases and/or sales of securities from time to time in the Future & Options Segment of the National Stock Exchange of India Ltd. (hereinafter called “NSEIL”) through one or more securities intermediaries that are “trading members” of NSEIL (hereinafter “Trading Members”) and have such trades cleared and settled through the Clearing Member (who in turn has agreed to clear and settle the trades executed by the Constituent through a Trading Member or Trading Members), subject to the provisions contained in the Rules, Byelaws and Regulations of NSCCL (Futures & Options Segment).

2) The Clearing Member is, inter alia, authorised to carry on the activities of clearing and settlement of trades that are executed on the Futures & Options Segment of NSEIL by a Trading Member or otherwise on behalf of the Constituent.

3) The Constituent has approached the Clearing Member to undertake clearing and settlement of trades and to discharge the Constituent’s duties and obligations towards NSCCL on its behalf, and the Clearing Member in turn has agreed to clear and settle the trades done by the Constituent through a Trading Member or Trading Members subject to (x) the provisions contained in the Rules, Byelaws and Regulations of NSCCL (Futures & Options Segment), (y) the terms and conditions contained in that certain Clearing Member – Constituent (Custodial Participant) Agreement entered into between the Clearing Member and the Constituent as of the date hereof, the form of which has been prescribed by NSCCL (hereinafter referred to as the “Custodial Participant Agreement”), and (z) this Agreement.

4) Reserve Bank of India (RBI), vide its Circular No. 2 dated 19^th July 2007, has permitted foreign institutional investors (“FIIs”) to offer foreign sovereign securities as collateral. Pursuant to the said Circular, the Securities and Exchange Board of India (SEBI), vide its Circular No. SEBI/DNPD/Cir-32/2007 dated 11^th September 2007, permitted the Clearing Member to accept foreign sovereign securities with a ‘AAA’ rating (such foreign sovereign securities, together with any profits, dividends, interest, distributions or other proceeds thereof, and any security entitlements or other indirect holding interests in respect of any and all of the foregoing, shall be collectively referred to herein as “Foreign Securities”) as collateral from its FII clients for Exchange Traded Derivative Transactions. However, SEBI has stipulated that before accepting Foreign Securities as collateral from the FII, the Clearing Member shall enter into a written agreement with the FII.

5) Therefore, the parties are desirous of entering into this Agreement in order to facilitate the offering and tendering of Foreign Securities by the Constituent as collateral to the Clearing Member, subject to the terms and conditions as contained herein:

NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS FOLLOWS:

1) This agreement shall be subject to the terms and conditions of the Custodial Participant Agreement and the parties shall be governed by the respective rights and obligations contained therein except to the extent otherwise provided herein.

2) The Clearing Member shall accept Foreign Securities offered and tendered as collateral from the Constituent subject to the following conditions:

a) Foreign Securities as specified by NSCCL from time to time pursuant to the directions of SEBI shall be accepted. The Foreign Securities shall satisfy the terms and conditions as specified by SEBI / NSCCL. The Constituent further agrees to be bound by and abide with the Circulars issued by NSCCL from time to time with regard to acceptance of Foreign Securities including the procedure for acceptance or release of the Foreign Securities as collateral from the Clearing Members.

b) The Clearing Member shall be entitled to collect from the Constituent margin in the form of Foreign Securities to such extent as permitted by NSCCL.

c) The Clearing Member shall be entitled to deliver the Foreign Securities in compliance with the margin requirements of NSCCL as specified from time to time for the trades cleared and settled by the Clearing Member on behalf of the Constituent by following such procedure as may be prescribed by NSCCL in this regard.

d) As security for any and all of Constituent’s obligations to the Clearing Member pursuant to this Agreement, the Custodial Participant Agreement and/or the Circulars issued by NSCCL from time to time (collectively, the “Obligations”), Constituent hereby unequivocally and unconditionally grants on to the Clearing Member a first priority continuing security interest in, lien on and right of set-off against all Foreign Securities transferred to or otherwise received by the Clearing Member as margin from Constituent. Notwithstanding any provision of law to the contrary (including, without limitation, any contrary provision of the Uniform Commercial Code of the State of New York), the Clearing Member shall have the right to register any such Foreign Securities in the name of the Clearing Member, its custodian or securities intermediary or a nominee for either, and shall further have the right to sell, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of, or otherwise use in its business any such Foreign Securities it or its custodian or securities intermediary (or a nominee for either) holds or controls, free from any claim or right of any nature whatsoever of the Constituent, including any equity or right of redemption by the Constituent. Without prejudice to the generality of the foregoing, Constituent acknowledges and agrees that the Clearing Member may hold the Foreign Securities in a securities or custodial account in the name of the Clearing Member, that will be subject to a first priority security interest, pledge, lien on and right of set-off granted by Clearing Member in favor of NSCCL to secure the Clearing Member’s obligations to NSCCL, including, without limitation, pursuant to that certain (i) Deed of Pledge for Clearing Members for Margin Deposits, including the New York Collateral Annex thereto, and (ii) Clearing Member – NSCCL Agreement, each between the Clearing Member and NSCCL and dated as of _______________ __, 2008, copies of which are attached hereto as Exhibit A-1 and Exhibit A-2, respectively. The Constituent further acknowledges and agrees that to the extent it may have any rights or interests from time to time with respect to any such Foreign Securities, such rights and interests shall in all respects be subject and subordinate to the security interests, rights, claims and interests of NSCCL in and to such Foreign Securities.

e) The Foreign Securities tendered by the Constituent in compliance with the margin requirements of NSCCL shall be returned by the Clearing Member to the Constituent in accordance with the terms of the Custodial Participant Agreement.

f) The Constituent agrees that in the event of a default by the Clearing Member or the Constituent, NSCCL shall be entitled to deal with the Foreign Securities tendered by the Clearing Member on its behalf by liquidating/selling such Foreign Securities. The Constituent agrees that any Foreign Securities shall be dealt with by NSCCL in accordance with its Rules, Byelaws, Regulations and circulars issued by it from time to time.

g) The Constituent agrees that the Foreign Securities delivered to the Clearing Member are available for liquidation by NSCCL in the event of Constituent’s insolvency/bankruptcy/winding up or in the event of the insolvency or bankruptcy/ winding up of the Clearing Member or in the event of the insolvency or bankruptcy/ winding up of the person located outside of India through whom the Foreign Securities are held.

h) Notwithstanding anything contained in the Custodial Participant Agreement to the contrary, in the event of any dispute between the Constituent and Clearing Member regarding the liquidation or return of Foreign Securities, the same shall be subject to the exclusive jurisdiction of the courts in India irrespective of whether the dispute has been referred to arbitration or not; provided, however, that nothing contained herein shall prohibit or preclude the exercise of remedies by NSCCL (at its election made in its sole discretion) with respect to any Foreign Securities under the laws of, and, if applicable, before the courts or other competent tribunals in, any other relevant jurisdiction. Any such exercise of remedies shall be non-exclusive and without prejudice to any rights and remedies NSCCL may be entitled to exercise in the courts of India under Indian law or otherwise.

i) Clearing Member and Constituent hereby acknowledge and agree that each and every one of the stipulations set forth in this Agreement in favor or for the benefit of NSCCL, including, without limitation, the terms set forth in clauses (a) through (h) (inclusive) of this clause (2), shall create immediately vested rights in favor NSCCL as a third-party beneficiary thereof (the “Third Party Benefits”) and shall create obligations upon the Constituent and/or Clearing Member, as the case may be, which obligations shall be irrevocably binding upon the Constituent and/or Clearing Member upon the execution of this Agreement. Clearing Member and Constituent further acknowledge and agree that (x) the Third Party Benefits are conferred upon NSCCL in consideration for the margin and other credit accommodations provided by NSCCL to or for the benefit of Clearing Member and Constituent in connection with purchases and/or sales of securities from time to time in the NSEIL through Trading Members (the “Accommodations”), (y) the Third Party Benefits are a material inducement for NSCCL to make the Accommodations and NSCCL has materially relied on (and will continue to materially rely on) the existence of the Third Party Benefits in its decision to provide the Accommodations and (z) NSCCL is understood to have manifested its acceptance of and consent to the Third Party Benefits by providing the Accommodations to or for the benefit of Clearing Member and/or Constituent, as the case may be, and by virtue of its general acceptance of the Third Party Benefits conferred by the Clearing Member and each FII (including Constituent) as evidenced in the General Notice of Acceptance of Third Party Benefits attached hereto as Exhibit B.

j) All disputes, differences or questions arising out of or in relation to the agreement including the interpretation of the terms contained herein with regard to the obligations, failure or breach thereof by any of the parties and/or of any matter whatsoever arising out of the Agreement, shall in the first instance be resolved mutually by the parties. If the parties fail to resolve the same mutually, then the same shall be referred to the arbitration in accordance with the Rules, ByeLaws and Regulations of NSCCL.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

IN WITNESS THEREOF, the parties to this Agreement have caused these presents to be executed as of the day and year first above written.

Signed for and on behalf of

CLEARING MEMBER

By

Signature

Title

Witness

Signed for and on behalf of

CONSTITUENT

By

Signature

Title

Witness

EXHIBIT A-1

EXHIBIT A-2

EXHIBIT B

GENERAL NOTICE OF ACCEPTANCE OF

THIRD PARTY BENEFITS

Date:_________

Re: National Securities Clearing Corporation Limited – Notice of Acceptance of Third Party Benefits

Ladies and Gentlemen:

Reference is made to the Clearing Member – Constituent (FII) Agreements (each, an “Agreement”) to be entered into from time to time between [INSERT NAME OF CLEARING MEMBER] and each foreign institutional investor designated as the “Constituent” therein. Such Agreements shall be substantially in the form attached as Appendix A to this General Notice of Acceptance of Third Party Benefits (this “Notice”).

Pursuant to this Notice the undersigned, National Securities Clearing Corporation Limited, a company incorporated in India under the Companies Act, 1956, hereby confirms its acceptance of each and every one of the Third Party Benefits (as such term is defined in Clause 2(i) of each Agreement) set forth in each Agreement (whether now existing or hereafter executed and delivered) in its favor or for its benefit, including, without limitation the terms set forth in clauses (a) through (h) (inclusive) of Clause 2 of each Agreement. The Third Party Benefits are a material inducement for the undersigned to make the Accommodations (as such term is defined in each Agreement) and the undersigned has materially relied on (and will continue to materially rely on) the existence of the Third Party Benefits in its decision to provide (and continue to provide) the Accommodations.

This Notice may be executed in several counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. In making proof of this Notice, it shall not be necessary to produce or account for more than one counterpart thereof executed by the undersigned. Delivery of an executed counterpart of this Notice by facsimile or electronic transmission shall have the same force and effect as delivery of an original executed counterpart of this Notice.

Very truly yours,

NATIONAL SECURITIES CLEARING CORPORATION LIMITED

By: ______________________________________

Name:

Title:

Witness:

APPENDIX A TO GENERAL NOTICE OF ACCEPTANCE OF THIRD PARTY BENEFITS

Form of Clearing Member – Constituent (FII) Agreement

Instructions:

1) The above printed format is required to be used.

2) The agreement is to be stamped for Rs.100/- or the value prevailing in the State where executed, whichever is higher. Agreement is 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 member along with the signature of the authorised signatory

ANNEXURE 32

FORMAT OF INDIAN DEED OF PLEDGE IN FAVOUR OF NSCCL FOR PROVIDING FOREIGN SOVEREIGN SECURITIES AS COLLATERAL

This Deed of Pledge (hereinafter referred to as this “Deed”) is executed at _______________ on this ___ day of _________ 2008 by

_______________________________, S/o / d/o / w/o __________________ residing at _____________________ and having his office at ________________________________ *

_____________________________, a partnership firm registered under the Indian Partnership Act, 1932 and having its office at __________________________________*

________________________Ltd., incorporated as a company under the Companies Act, 1956 and having its registered office at _______________________________________*

(hereinafter referred to as “Clearing Member” which expression shall unless repugnant to the context thereof include successors, administrators and assigns) in favour of National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai-400 051 (hereinafter referred to as “NSCCL” which expression shall unless repugnant to the context thereof, include its successors and assigns).

WHEREAS

a) The Clearing Member is admitted to the Clearing Membership of Futures and Options segment of NSCCL.

b) One of the requirements of the clearing membership is that the Clearing Member shall maintain with NSCCL margin 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 out or entered into by him/it.

c) The securities to be deposited by the Clearing Member shall be securities in dematerialised form and as may be approved by NSCCL from time to time to an extent of Rs. ________ /- (Rupees ________________ only) or of such value as may be specified by NSCCL from time to time.

d) The Clearing Member shall deposit the securities with such custodians acting as depository participants as may be determined by NSCCL from time to time.

e) Certain of the securities deposited by the Clearing Member from time to time in accordance with this Deed shall consist of book-entry securities issued or guaranteed by the United States government, which book-entry securities must be held through a tiered holding system maintained with the participation of commercial banks and other securities intermediaries in the United States that have deposit accounts with a Federal Reserve Bank.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. In consideration of NSCCL having agreed to accept approved dematerialised securities as a margin deposit of such value as may be specified by NSCCL from time to time, the Clearing Member hereby pledges, and grants a security interest and right of setoff in, in favor of NSCCL, as security for due and timely payment, 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 (all of the foregoing engagements, commitments, operations, obligations and liabilities, collectively, the “Clearing Member Obligations”), all of the Clearing Member’s right, title and interest in and to the following securities and other related financial assets and interests:

(a) All securities and financial assets and instruments described in this Deed (including, without limitation, in the Schedule and/or in the New York Collateral Annex annexed hereto), including all rights or “securities entitlements” created by brokers, custodians or other securities intermediaries in respect of any such securities, financial assets and instruments;

(b) All securities and financial assets and instruments deposited, received or otherwise credited to or for the account or benefit of the Clearing Member from time to time in addition, substitution or replacement thereof; and

(c) And any proceeds, profits, dividends, proceeds and other distributions in respect of any of the foregoing securities and financial assets and instruments;

(All of the property described in the foregoing clauses (a), (b) and (c) shall hereinafter collectively be referred to as the “Pledged Securities”).

2. The Clearing Member if so determined by NSCCL shall place the Pledged Securities in the absolute disposition of such custodian/depository participant in such manner as decided by NSCCL and such possession and disposition shall be apparent and indisputable notwithstanding the fact that the Clearing Member may be permitted to have access to the Pledged Securities in the manner and subject to such terms and conditions as determined by NSCCL and provided further that during such time the Clearing Member confirms, affirms and covenants with NSCCL that he/it shall do all such acts and things, sign such documents and pay and incur such costs, debts and expenses as may be necessary without prejudice to any other obligations, liabilities, duties which he/it owes as a Clearing Member.

3. The Clearing Member declares and assures that all the Pledged Securities (i) are in existence, (ii) are either owned by him/it or he/it has the right and power to pledge the Pledged Securities and create and transfer to NSCCL a security interest and right of setoff in the Pledged Securities, in each case, free from any prior charge, lien or encumbrance and (iii) that all the Pledged Securities that may be subject to the pledge and lien of this Deed from time to time in favor of NSCCL shall likewise be unencumbered, absolute and disposable property of the Clearing Member.

4. 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 Pledged Securities hereby pledged except to NSCCL, that he/it shall not suffer any such charge, lien or encumbrance to affect the Pledged Securities or any part thereof and further that he/it shall not do or allow anything to be done that may prejudice the Pledged Securities while he/it remains liable to NSCCL in any manner for the Clearing Member Obligations without the prior written permission of NSCCL.

5. 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 or Scheme of Pledge, as the case may be, of securities in dematerialised form as formulated and determined by NSCCL, for margin deposit either in their existing form or as modified/changed/altered /amended from time to time pursuant to requirement/ compliance of Clearing Membership.

6. If in the opinion of NSCCL, the Clearing Member has failed to perform and / or fails to fulfill 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 business 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 Pledged 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 understands and agrees that one business day notice mentioned above shall be deemed to be a reasonable notice, as this pledge of securities is being accepted as margin deposit by NSCCL in lieu of cash deposits or bank guarantees, which can be invoked and appropriated in a day’s time and also due to the nature of transactions on NSCCL.

7. The Pledged 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 Pledged 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.

8. 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 Pledged Securities.

9. The Clearing Member agrees that NSCCL shall be entitled to sell, negotiate or otherwise transfer the Pledged 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.

10. 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.

11. The Clearing Member agrees that the deposit of the Pledged 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.

12. 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 Pledged Securities, in any manner, due to any cause whatsoever, irrespective of whether the Pledged Securities shall be in the possession or subject to the control of 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 Pledged Securities or in pursuance of the rights and powers of NSCCL under this Deed.

13. The Clearing Member undertakes that the deposit of the Pledged 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 Pledged 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.

14. This Deed shall be governed by and construed in accordance with the laws of India as shall be in effect from time to time, including, without limitation, any bye-laws, rules, regulations, circulars and instructions of NSEIL and NSCCL or any rules, regulations, circulars and instructions of the Government of India or any branch, agency or subdivision thereof, the Securities and Exchange Board of India and the Reserve Bank of India. In the event of any dispute between NSCCL and the Clearing Member in connection with this Deed, including with respect to the liquidation, retention or return of Pledged Securities, the same shall be subject to the exclusive jurisdiction of the courts in India provided, however, that nothing contained herein shall prohibit or preclude the bringing of any action or exercise of remedies by NSCCL (in each case at its election made in its sole discretion) for the purpose of preserving or enforcing its rights and interests with respect to any Pledged Securities under the laws of, and, if applicable, before the courts or other competent tribunals in, any other relevant jurisdiction. Any such action or exercise of remedies by NSCCL shall be non-exclusive and without prejudice to any rights and remedies NSCCL may be entitled to exercise in the courts of India under Indian law or otherwise.

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

a. The Clearing member in case of individual.

b. All partners in case of a Partnership firm

c. By any two of the following persons in the case of a Company:

i. Managing Director

ii. Whole-time Director

iii. Directors

Instructions:

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.

ANNEXURE 33

FORMAT OF NEW YORK COLLATERAL ANNEX FOR PROVIDING FOREIGN SOVEREIGN SECURITIES AS COLLATERAL

NEW YORK COLLATERAL ANNEX

dated as of ________________, 2008

between

[NAME OF CLEARING MEMBER]

(“Pledgor”)

and

National Securities Clearing Corporation Limited

(“NSCCL”)

The parties to this New York Collateral Annex (this “Collateral Annex”) hereby agree as follows:

1. Scope.

This Collateral Annex supplements, forms part of and is subject to that certain Deed of Pledge for Clearing Members for Margin Deposits, dated as of ____________, 2008, entered into between the Pledgor and NSCCL (the “Indian Deed of Pledge”) and sets out additional terms and conditions which shall apply to margin deposits and other security provided as collateral by the Pledgor to secure the Clearing Member Obligations (as such term is defined in the Indian Deed of Pledge) owing to NSCCL, where such collateral consists of rights and interests in respect of certain U.S. treasury obligations held in securities accounts maintained on behalf of Pledgor by one or more custodians located in the State of New York, together with all other “Collateral” as such term is defined in Section 2 below. In the event of any inconsistency between the provisions of the Indian Deed of Pledge and this Collateral Annex, the provisions of the Indian Deed of Pledge shall prevail as between the Pledgor and NSCCL.

2. Definitions.

In this Collateral Annex, the following terms have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

“Book-entry Security” means a security maintained in the form of entries (including without limitation, the Security Entitlements in, and the financial assets based on, such security) in the commercial book-entry system of the United States Federal Reserve System.

“Cash Equivalents” means (i) any Book-entry Security that is a direct, non-callable obligation of, or a non-callable obligation guaranteed by, the United States of America and backed by its full faith and credit that, in each case, is governed by the Treasury Regulations (including, without limitation, those obligations commonly known as “US Treasury Bills”, “US Treasury Notes”, “US Treasury Bonds”, “US Treasury Inflation Protected Issues (TIPS)” and “US Treasury Strips”), and (ii) any other securities (or security entitlements or other interests therein) designated in writing from time to time by NSCCL as eligible Cash Equivalents hereunder or otherwise authorised to be tendered as margin deposits to secure the Clearing Member Obligations pursuant to the NSEIL/NSCCL Rules.

“C.F.R.” means the United States Code of Federal Regulations.

“Clearing Member Obligations” has the meaning specified in Section 1.

“Collateral” has the meaning specified in Section 3.

“Collateral Account” has the meaning specified in Section 3(i).

“Control Agreement" means a control agreement entered into among the Pledgor, NSCCL and a Designated Custodian, whereby the Designated Custodian agrees to follow Entitlement Orders originated by NSCCL without the further consent of the Pledgor, provided that such agreement shall otherwise be in form and substance reasonably acceptable to NSCCL and its counsel.

“Designated Custodian” means a Qualified Institution reasonably acceptable to NSCCL that has been designated by the Pledgor to act as the Securities Intermediary with respect to a Collateral Account and that has entered into a Control Agreement.

“Entitlement Holder” has the meaning specified in Section 8-102(a)(7) of the N.Y. UCC or in respect of any Book-entry Security, the meaning specified for “Entitlement Holder” in Section 357.2 of the TRADES Regulations or the analogous provision of any Treasury Regulations applicable to other Book-entry Securities.

“Event of Default” means (i) the occurrence and continuation of an Event of Default with respect to the Clearing Member Obligations set forth in the Indian Deed of Pledge, (ii) the Pledgor fails to make, when due, any transfer, delivery, pledge, assignment or grant of Collateral required to be made by it pursuant to this Collateral Annex and that failure continues unremedied for one (1) Business Day after notice of that failure is given to the Pledgor; or (iii) the failure or refusal by the Pledgor to perform, or the breach or violation of; any of the terms, obligations, covenants or warranties of this Collateral Annex (other than as specified in subclause (ii) above) and that failure or refusal continues unremedied for five (5) business days after notice of such failure or refusal is given to the Pledgor.

“NSEIL/NSCCL Rules” means the circulars, bye-laws, rules, regulations and other requirements of the National Stock Exchange of India Ltd. and NSCCL as in effect from time to time.

“N.Y. UCC” means the Uniform Commercial Code in effect in the State of New York from time to time, including, without limitation, the provisions of Article 8 and Article 9 thereof.

“Participant” has the meaning specified in Section 357.2 of the TRADES Regulations (or the analogous provision of any other Treasury Regulations applicable to such Book-entry Securities).

“Pledgor” has the meaning specified in the recitals of the parties hereto.

“Qualified Institution” means a Participant that is a domestic office of a commercial bank, trust company or financial institution organized under the laws of the United States (or any state or a political subdivision thereof) having assets of at least ten billion dollars ($10,000,000,000) and a long term debt or deposit rating of at least Baa2 from Moody’s Investor Service, Inc. and BBB from Standard & Poor’s, a division of the McGraw-Hill Companies, Inc.

“Secured Obligations” means (i) the Clearing Member Obligations, (ii) any and all sums advanced by NSCCL in order to preserve the Collateral or preserve its lien and security interest in the Collateral; (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations, or liabilities referred to in clauses (i) and (ii) above, the reasonable expenses of any exercise by NSCCL of its rights hereunder, together with reasonable attorneys’ fees and court costs; and (iv) to the extent not otherwise included in clauses (i), (ii) and (iii) above, the Pledgor’s obligations set forth in this Collateral Annex.

“Securities Intermediary” means a Person that is a “securities intermediary” (as defined in the N.Y. UCC, Section 8-102(a)(14)) and, in respect of any Book-entry Security, a “Securities Intermediary” as defined in Section 357.2 of the TRADES Regulations (or the analogous provision of any other Treasury Regulations applicable to such Book-entry Securities).

“Security” has the meaning specified in Section 8-102(a)(15) of the N.Y. UCC or, in respect of any Book-entry Security, has the meaning specified for “Security” in Section 357.2 of the TRADES Regulations (or the analogous provision of any other Treasury Regulations applicable to such Book-entry Securities).

“Security Entitlement” has the meaning specified in N.Y. UCC Section 8-102(a)(17) or, in respect of any Book-entry Security, has the meaning specified for “Security Entitlement” in Section 357.2 of the TRADES Regulations (or the analogous provision of any other Treasury Regulations applicable to such Book-entry Securities).

“Termination Date” means, unless otherwise agreed in writing by NSCCL in its sole discretion, the date as of which Pledgor shall have ceased to be a clearing member of the Futures and Options Segment of NSCCL and there shall be no further Secured Obligations of any kind or nature whatsoever (whether or not matured, fixed, contingent, liquidated or otherwise) owing or potentially owing to NSCCL.

“TRADES” means the Treasury/Reserve Automated Debt Entry System maintained by the Federal Reserve Bank of New York pursuant to the TRADES Regulations.

“TRADES Regulations” means the regulations of the United States Department of the Treasury contained in 31 C.F.R. Part 357 (including, without limitation, Section 357.2, Section 357.10 through Section 357.14 and Section 357.41 through Section 357.44 of 31 C.F.R. Part 357), as amended.

“Treasury Regulations” means (a) the TRADES Regulations and (b) to the extent substantially identical to the TRADES Regulations (as in effect from time to time) the federal regulations governing other U.S government obligations.

Capitalized terms not otherwise defined in this Collateral Annex shall have the meaning given such terms in the Indian Deed of Pledge, the NSEIL/NSCCL Rules, or in Articles 1, 8 or 9 of the N.Y. UCC or Section 357.2 of the TRADES Regulations (or any analogous provision of any other Treasury Regulations applicable to any Book-entry Securities), as the case may be.

3. Pledge and Grant of Security Interest in the Collateral.

As security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Secured Obligations, the Pledgor hereby assigns and pledges to NSCCL and hereby grants to NSCCL, a lien on and first priority perfected security interest in all of the Pledgor’s right, title and interest in, to and under the following property (all such property, collectively, the “Collateral”):

(i) Each securities account maintained with a Designated Custodian that shall be identified from time to time as a “Collateral Account” for purposes of this Collateral Annex on Schedule 1 hereto (as amended from time to time) (each such account, a “Collateral Account”);

(ii) All Security Entitlements and all other financial assets from time to time carried in or standing to the credit of each Collateral Account, including, without limitation, all Security Entitlements in respect of Book-entry Securities and money and funds held therein and all certificates and instruments, if any, from time to time representing or evidencing the Collateral Account;

(iii) All securities, interest, dividends, cash, instruments and other property, if any, from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Collateral;

(iv) All notes, certificates of deposit, deposit accounts, checks and other instruments, if any, from time to time hereafter delivered to or otherwise possessed or controlled by the Pledgor or a Designated Custodian for or on behalf of the Pledgor, in each case in substitution for any or all of the then existing Collateral;

(v) Any claims or causes of action against any Designated Custodian in respect of a Collateral Account; and

(vi) All profits, products, dividends, distributions and proceeds of any kind or nature whatsoever of any and all of the foregoing Collateral (including, without limitation, proceeds that constitute property of the types described in foregoing clauses of this Section 3) and, to the extent not otherwise included, all (a) payments under insurance (whether or not NSCCL is the loss payee thereof) or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral and (b) cash proceeds of any and all of the foregoing Collateral.

Without limiting the generality of the foregoing, this Collateral Annex secures the payment of all amounts that constitute part of the Secured Obligations and would be owed by the Pledgor to NSCCL under the Indian Deed of Pledge, this Collateral Annex and any other transaction documents related thereto but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Pledgor.

Notwithstanding Section 9-207 of the N.Y. UCC, any proceeds or other property, including money and funds, received from or in respect of the Collateral shall be held as and shall constitute additional Collateral hereunder, and NSCCL shall not be required to apply such money or funds to reduce the Secured Obligations other than as expressly set forth herein.

4. Establishment and Maintenance of Collateral.

(a) Prior to or concurrently with the execution and delivery hereof, and from time to time, the Pledgor shall cause one or more Designated Custodians to establish Collateral Accounts on the books of each such Designated Custodian as a separate securities account segregated from all other custodial or collateral accounts, which Collateral Accounts shall be maintained at all times as securities accounts in the name of the Pledgor by each such Designated Custodian at its designated office in New York, New York. The following provisions shall apply to the establishment and maintenance of each Collateral Account:

(i) The Collateral Account shall be separate from all other accounts maintained by the Designated Custodian.

(ii) NSCCL shall, in accordance with all applicable laws, be granted dominion and control over the Collateral Account pursuant to a Control Agreement entered into among the Designated Custodian, NSCCL and the Pledgor in form and substance reasonably acceptable to NSCCL and its counsel, and the Pledgor shall, and shall cause the Designated Custodian maintaining such Collateral Account to, perform or cause to be performed, such additional or alternative procedures as may hereafter become appropriate to ensure that NSCCL shall at all times have a first priority perfected security interest with respect to such Collateral Account consistent with changes in applicable law or regulations or the interpretation thereof;

(iii) No amount (including interest on Collateral) shall be released to or for the account of, or withdrawn by or for the account of, the Pledgor or any other person except as directed by NSCCL or with its prior written consent, or as otherwise expressly provided in this Collateral Annex.

(iv) The Designated Custodian shall cause the corresponding Federal Reserve Bank to indicate by book entry that any Book-entry Securities have been credited to the Designated Custodian’s Participant’s Securities Account at such Federal Reserve Bank.

(v) Such Designated shall indicate by book entry that a Security Entitlement to such Book-entry Securities has been credited to the Collateral Account.

(b) All certificates or instruments representing or evidencing Collateral shall be delivered to and held by or on behalf of Designated Custodian pursuant hereto and shall be in suitable form for transfer or delivery, or, at the request of NSCCL, shall be accompanied by duly executed instruments of transfer or assignment in blank. In addition, NSCCL shall have the right at any time to exchange certificates or instruments representing or evidencing Collateral for certificates or instruments of smaller or larger denominations.

(c) With respect to any Collateral that constitutes a Security and is not represented or evidenced by a certificate or instrument and that is not otherwise held in a Collateral Account, the Pledgor shall cause the issuer thereof either (i) to register NSCCL or its agent as the registered owner of such security or (ii) to agree in writing with NSCCL and the Pledgor that such issuer will comply with instructions with respect to such security originated by NSCCL without further consent of the Pledgor, the terms of such agreement to be consistent with the terms of this Collateral Annex (if applicable).

(d) With respect to any Collateral that constitutes a Security Entitlement that is not otherwise held in a Collateral Account, the Pledgor shall cause the Securities Intermediary with respect to such Security Entitlement either (i) to identify in its records NSCCL as the entitlement holder of such Security Entitlement against such Securities Intermediary or (ii) to agree in writing with the Pledgor and NSCCL that such Securities Intermediary will comply with entitlement orders (that is, notifications communicated to such Securities Intermediary directing transfer or redemption of the financial asset to which Pledgor has a Security Entitlement) originated by NSCCL without further consent of the Pledgor, the terms of such agreement to be consistent with the terms of this Collateral Annex (if applicable).

(e) With respect to any Collateral that constitutes a securities account, the Pledgor will comply with subsection (d) of this Section 4 with respect to all Security Entitlements carried in such securities account.

(f) Pledgor hereby irrevocably authorizes NSCCL at any time and from time to time to file in the Office of the Secretary of State of the State of New York, the District of Columbia and any other filing office in the United States any initial financing statements and amendments thereto that (a) contain a description of collateral of an equal or lesser scope as the Collateral described in this Collateral Annex or any supplement hereto, but such description may contain greater detail than is contained in this Collateral Annex or any such supplement, and (b) contain any other information required by part 5 of Article 9 of the Uniform Commercial Code as in effect in any applicable jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment therein, including whether the Pledgor is an organization, the type of organization and any organization identification number issued to the Pledgor. The Pledgor agrees to furnish any such information to NSCCL promptly upon request. The Pledgor also ratifies its authorization for NSCCL to have filed in any Uniform Commercial Code jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.

(g) Collateral consisting of cash will be deemed to be delivered to a Designated Custodian when it has been (and for so long as it shall remain) deposited in or credited to the Collateral Account.

5. Investing of Amounts in the Collateral Accounts.

The Pledgor shall cause the Designated Custodian to advise the Pledgor if, at any time, any amounts shall exist in any Collateral Account uninvested, and if so, the Pledgor may (or, if so directed by NSCCL, shall) direct such Designated Custodian in writing to:

(a) Invest such amounts on deposit in the Collateral Account in such Cash Equivalents as the Pledgor or NSCCL may select, and

(b) Invest interest paid on the Cash Equivalents referred to in clause (a) above, and reinvest other proceeds of any such Cash Equivalents that may mature or be sold, in Cash Equivalents, as the Pledgor or NSCCL may select.

Any payments of interest, dividends or other proceeds received in a Collateral Account (or, if applicable, directly by NSCCL), or otherwise received in respect of Collateral, that are not invested or reinvested in Cash Equivalents as provided above will be held as additional Collateral.

6. Disbursements of Collateral.

(a) All Collateral consisting of securities and other investment property shall remain in the corresponding Collateral Account at all times, and shall only be released in accordance with this Collateral Annex or otherwise with the prior written consent of NSCCL.

(b) Upon the release of any Collateral from a Collateral Account, in accordance with the terms of this Collateral Annex, the security interest and lien evidenced by this Collateral Annex in such released Collateral will automatically terminate and be of no further force and effect; provided that the foregoing shall not affect the security interest and lien on any Collateral not so released.

(c) Except as expressly provided in this Section 6, nothing contained in this Collateral Annex shall (i) afford the Pledgor any right to issue entitlement orders with respect to any Security Entitlement to any of the Collateral or any securities account in which any such Security Entitlement may be carried, or otherwise afford the Pledgor control of any such Security Entitlement or (ii) otherwise give rise to any rights of the Pledgor with respect to the Collateral, any Security Entitlement thereto or any securities account in which any such Security Entitlement may be carried, other than the Pledgor’s rights under this Collateral Annex as the beneficial owner of Collateral pledged to and subject to the exclusive dominion and control (including, without limitation, securities control) of NSCCL.

7. Representations and Warranties of the Pledgor.

The Pledgor hereby represents and warrants, as of the date hereof and at all such times as there shall remain Secured Obligations outstanding, that:

(a) The execution and delivery by the Pledgor of, and the performance by the Pledgor of its obligations under, this Collateral Annex will not contravene any provision of applicable law or the certificate of incorporation, bylaws or equivalent organizational instruments of the Pledgor or any material agreement or other material instrument binding upon the Pledgor or any of its subsidiaries or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Pledgor or any of its subsidiaries, or result in the creation or imposition of any lien on any assets of the Pledgor, except for the lien and security interests granted under this Collateral Annex; no consent, approval, authorization or order of, or qualification with, and no notice to or filing with, any governmental body or agency or other third party is required (i) for the performance by the Pledgor of its obligations under this Collateral Annex, (ii) for the pledge by the Pledgor of the Collateral pursuant to this Collateral Annex or for the execution, delivery or performance of this Collateral Annex by the Pledgor or (iii) for the perfection or maintenance of the pledge, assignment and security interest created hereby (including the first priority nature of such pledge, assignment or security interest), except for the filing of financing and continuation statements under the Uniform Commercial Code of applicable jurisdictions which financing statements have been delivered pursuant to Section 3(g) hereof, or (iv) except for any such consents, approvals, authorizations or orders required to be obtained by Pledgor for reasons other than the consummation of this transaction, for the exercise by NSCCL of the rights provided for in this Collateral Annex or the remedies in respect of the Collateral pursuant to this Collateral Annex.

(b) The Pledgor is the legal and beneficial owner of the Collateral, free and clear of any lien or claims of any Person (except for the lien and security interests granted under this Collateral Annex and the Indian Deed of Pledge). No effective financing statement or other instrument similar in effect covering all or any part of the Collateral is on file in any public office other than the financing statements, if any, to be filed pursuant to this Collateral Annex.

(c) This Collateral Annex has been duly authorised, validly executed and delivered by the Pledgor and (assuming the due authorization and valid execution and delivery of this Collateral Annex by NSCCL and enforceability of this Collateral Annex against NSCCL in accordance with its terms) constitutes a valid and binding agreement of the Pledgor, enforceable against the Pledgor in accordance with its terms, except as (i) the enforceability hereof may be limited by bankruptcy, insolvency, fraudulent conveyance, preference, reorganization, moratorium or similar laws now or hereafter in effect relating to or affecting the rights or remedies of creditors generally, and (ii) the availability of equitable remedies may be limited by equitable principles of general applicability and the discretion of the court before which any proceeding therefor may be brought.

(d) Upon the delivery to a Designated Custodian of the Collateral in accordance with the terms hereof and the execution of a Control Agreement by such Designated Custodian in favor of NSCCL, the pledge of and grant of a security interest in the Collateral securing the payment of the Secured Obligations for the benefit of NSCCL will constitute a valid, first priority, perfected security interest in such Collateral, enforceable as such against all creditors of the Pledgor and any persons purporting to purchase any of the Collateral from the Pledgor. Upon the execution of such Control Agreement, all actions necessary or desirable to perfect and protect such security interest will have been duly taken.

(e) There are no legal or governmental proceedings pending or, to the best of the Pledgor’s knowledge, threatened to which the Pledgor or any of its subsidiaries is a party or to which any of the properties of the Pledgor or any of its subsidiaries is subject that would materially adversely affect the power or ability of the Pledgor to perform its obligations under this Collateral Annex or to consummate the transactions contemplated hereby.

(f) The pledge of the Collateral pursuant to this Collateral Annex is not prohibited by law or governmental regulation (including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System) applicable to the Pledgor.

(g) No Event of Default exists.

(h) The Pledgor is a [_____________] duly organized and validly existing under the laws of [______________]. The Pledgor’s name as it appears in official filings in [______________] is [______________]. The Pledgor’s organizational identification number issued by [______________] is [______________].

8. Covenants of the Pledgor.

The Pledgor covenants and agrees with NSCCL that from and after the date of this Collateral Annex until the Termination Date:

(a) It will not (and will not purport to) (i) sell or otherwise dispose of, or grant any option or warrant with respect to, any of the Collateral nor (ii) create or permit to exist any lien upon or with respect to any of the Collateral (except for the liens and security interests granted under this Collateral Annex and the Indian Deed of Pledge) and at all times will be the sole beneficial owner of the Collateral;

(b) It will not (i) enter into any agreement or understanding that restricts or inhibits or purports to restrict or inhibit NSCCL’s control over the Collateral or its rights or remedies hereunder, including, without limitation, NSCCL’s right to sell or otherwise dispose of the Collateral or (ii) fail to pay or discharge any tax, assessment or levy of any nature with respect to its beneficial interest in the Collateral not later than three (3) business days prior to the date of any proposed sale under any judgment, writ or warrant of attachment with respect to the Collateral;

(c) It will not, directly or indirectly, authorize any third party to give Entitlement Orders with respect to any Collateral Account or other Collateral or to file any financing statement with respect to any of the Collateral without the prior written consent of NSCCL.

9. Fees and Expenses.

Pledgor agrees to pay to NSCCL promptly upon demand (and in any event within five (5) business days following such demand) the amount of any and all expenses, including, without limitation, the reasonable fees, expenses and disbursements of counsel, experts and agents retained by NSCCL, that NSCCL may incur in connection with:

(a) The administration of the Indian Deed of Pledge and this Collateral Annex including, without limitation, in connection with any of the items described in Section 10 (Further Assurances);

(b) The custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral;

(c) The exercise or enforcement of any of the rights of NSCCL hereunder; or

(d) The failure by the Pledgor to perform or observe any of the provisions hereof.

10. Further Assurances.

The Pledgor will, promptly upon the request by NSCCL, execute and deliver or cause to be executed and delivered, or use its reasonable best efforts to procure, all assignments, instruments and other documents, deliver any instruments to NSCCL and take any other actions that are necessary or desirable to perfect, continue the perfection of, or protect the first priority of the NSCCL’s security interest in and to the Collateral, to protect the Collateral against the rights, claims or interests of third persons (other than any such rights, claims or interests created by or arising through NSCCL) or to effect the purposes of this Collateral Annex. Without limiting the generality of the foregoing, the Pledgor will, if any Collateral shall be evidenced by a promissory note or other instrument, deliver to NSCCL in pledge hereunder such note or instrument duly endorsed and accompanied by duly executed instruments of transfer or assignment; and execute and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary, or as NSCCL may reasonably request, in order to perfect and preserve the pledge, assignment and first priority perfected security interest granted or purported to be granted hereby. The Pledgor also agrees, whether or not requested by NSCCL, to use its reasonable best efforts to perfect or continue the perfection of, or to protect the first priority of, NSCCL’s security interest in and to the Collateral, and to protect the Collateral against the rights, claims or interests of third persons (other than any such rights, claims or interests created by or arising through NSCCL).

The Pledgor will pay all costs incurred in connection with any of the foregoing in accordance with Section 9.

11. Rights and Remedies of NSCCL as Secured Party.

If any Event of Default shall have occurred and be continuing, NSCCL shall have the following rights and remedies:

(a) NSCCL shall have, in addition to all other rights given by law or by this Collateral Annex or the Indian Deed of Pledge, all of the rights and remedies with respect to the Collateral of a secured party upon default under the N.Y. UCC (whether or not the N.Y. UCC applies to the affected Collateral) at that time.

(b) In addition, with respect to any Collateral that shall then be in or shall thereafter come into the control, possession or custody of NSCCL, NSCCL may give Entitlement Orders to the applicable Designated Custodian to sell, liquidate or dispose of any Collateral, or appoint a broker or other expert to sell or cause the same to be sold at any broker’s board or at public or private sale, in one or more sales or lots, at such price or prices such broker or other expert may deem commercially reasonable, for cash or on credit or for future delivery, without assumption of any credit risk. The purchaser of any or all Collateral so sold shall thereafter hold the same absolutely, free from any claim, encumbrance or right of any kind whatsoever created by or through the Pledgor.

(c) Pledgor acknowledges and agrees that the Collateral is of a kind that is customarily sold on a recognized market and/or the subject of widely distributed standard price quotations, and threatens to decline speedily in value, within the meaning of Sections 9-610 and 9-611 of the N.Y. UCC, and accordingly, the Pledgor is not entitled to prior notice of sale of such Collateral by NSCCL, except any notice that is required under applicable law and cannot be waived. Any sale of the Collateral conducted in conformity with reasonable commercial practices of banks, insurance companies, commercial finance companies, or other financial institutions disposing of property similar to the Collateral shall be deemed to be commercially reasonable. Any requirements of reasonable notice, to the extent applicable, shall be met if notice of the time and place of any public sale or the time after which any private sale is to be made is given to the Pledgor at least ten (10) days before the time of the sale or disposition. NSCCL or any agent acting on its behalf may, in its own name or in the name of a designee or nominee, buy any of the Collateral at any public sale and, if permitted by applicable law, at any private sale. NSCCL shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. NSCCL may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. All expenses (including court costs and reasonable attorneys’ fees, expenses and disbursements) of, or incident to, the enforcement of any of the provisions hereof shall be recoverable from the proceeds of the sale or other disposition of the Collateral.

(d) The Pledgor recognizes that, by reason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state securities laws, the NSCCL may be compelled, with respect to any sale of all or any part of the Collateral, to limit purchasers to those who will agree, among other things, to acquire the relevant Collateral for their own account, for investment and not with a view to the distribution or resale thereof. The Pledgor acknowledges that any such private sale may be at prices and on terms less favorable to NSCCL than those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner and that the NSCCL shall have no obligation to engage in public sales and no obligation to delay the sale of any Collateral for the period of time necessary to enable the registration of the Collateral or related transaction so as to permit a public offer to be made with respect thereto.

(e) The Pledgor further agrees to use its reasonable best efforts to do or cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Collateral pursuant to this Section 7 valid and binding and in compliance with any and all other applicable requirements of law. The Pledgor further agrees that a breach of any of the covenants contained in this Collateral Annex or the Indian Deed of Pledge will cause irreparable injury to NSCCL, that NSCCL has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this Collateral Annex or the Indian Deed of Pledge shall be specifically enforceable against the Pledgor, and the Pledgor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense that no Event of Default has occurred.

(f) All cash proceeds received by NSCCL in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of NSCCL and notwithstanding anything to the contrary in Section 9-207 or other relevant provision of the N.Y. UCC, be held by NSCCL as collateral for, and/or then or at any time thereafter applied by NSCCL against any Secured Obligations. Any surplus of such cash or cash proceeds held by NSCCL and remaining after payment in full of all of the Secured Obligations shall be paid over to the Pledgor.

(g) NSCCL may, but is not obligated to, exercise any and all rights and remedies the Pledgor may have in respect of the Collateral.

(h) Subject to and in accordance with the terms of this Collateral Annex and the Indian Deed of Pledge, all payments received by the Pledgor in respect of the Collateral shall be received in trust for the benefit of NSCCL, shall be segregated from other funds of the Pledgor and shall be forthwith paid over to NSCCL in the same form as so received (with any necessary endorsement) or as NSCCL shall otherwise direct.

(i) NSCCL may, without notice to the Pledgor except as required by law and at any time or from time to time, charge, set-off and otherwise apply all or any part of the Secured Obligations against the Collateral or any part thereof.

(j) The Pledgor shall cease to be entitled to direct the investment of amounts held in any Collateral Account under Section 5 and NSCCL shall be entitled to direct any Designated Custodian to not accept any direction or other Entitlement Order from the Pledgor to invest amounts held in any Collateral Account.

12. Power of Attorney.

The Pledgor hereby appoints and constitutes NSCCL as the Pledgor’s attorney-in-fact (with full power of substitution) to exercise to the fullest extent permitted by law in the place and stead and at the expense of the Pledgor, in the name of the Pledgor or otherwise, from time to time in NSCCL’s discretion to take any action and to execute any instrument that NSCCL may deem necessary or advisable to accomplish the purposes of this Collateral Annex and the Indian Deed of Pledge, which appointment is irrevocable and coupled with an interest, including, without limitation:

(a) To give any necessary receipts or acquittances for amounts collected or received hereunder;

(b) To collect the proceeds of any Collateral;

(c) To convey any item of Collateral to any purchaser thereof;

(d) To give any notices or recording of any liens hereof;

(e) To pay or discharge taxes or liens levied or placed upon the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by NSCCL in its sole reasonable discretion, and such payments made by NSCCL to become part of the Secured Obligations secured hereby, due and payable immediately upon demand;

(f) To endorse and negotiate any checks or instruments representing proceeds of Collateral in the name of the Pledgor;

(g) To execute and give receipt for any certificate of ownership or any document constituting Collateral;

(h) Transfer title to any item of Collateral;

(i) Sign the Pledgor’s name on all financing statements (to the extent permitted by applicable law) or any other documents necessary or appropriate to preserve, protect or perfect the security interest in the Collateral and to file the same;

(j) Prepare, file and sign the Pledgor’s name on any notice of lien (to the extent permitted by applicable law);

(k) And to take any other actions arising from or necessarily incident to the powers granted to NSCCL in this Collateral Annex or the Indian Deed of Pledge.

Nevertheless, if so requested by NSCCL or a purchaser, the Pledgor shall ratify and confirm, to the extent it has to the power to do so, any such sale or other disposition by executing and delivering to NSCCL or such purchaser all proper bills of sale, assignments, releases and other instruments as may be designated in any such request.

If the Pledgor fails to perform any agreement contained herein, NSCCL may, but is not obligated to, after providing to the Pledgor notice of such failure and five (5) business days to effect such performance, itself perform, or cause performance of, such agreement, and the expenses of NSCCL incurred in connection therewith shall be payable by the Pledgor in accordance with Section 9.

13. Security Interest Absolute.

All rights of NSCCL and security interests hereunder, and all obligations of the Pledgor hereunder, shall be absolute and unconditional irrespective of:

(a) Any lack of validity or enforceability of the Indian Deed of Pledge or any other agreement or instrument relating thereto;

(b) Any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from the Indian Deed of Pledge or any other agreement or instrument relating thereto;

(c) Any exchange, surrender, release or non-perfection of any liens on any other Collateral for all or any of the Secured Obligations;

(d) Any change, restructuring or termination of the corporate structure or the existence of the Pledgor or any of its subsidiaries;

(e) To the extent permitted by applicable law, any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Pledgor in respect of the Secured Obligations or of this Collateral Annex; or

(f) Any manner of application of other collateral, or proceeds thereof, to all or any item of the Secured Obligations, or any manner of sale or other disposition of any item of Collateral for all or any of the Secured Obligations.

14. Miscellaneous Provisions.

(a) Notices.  Any notice, approval, direction, consent or other communication shall be sufficiently given if in writing and delivered in person or mailed by first class mail, commercial courier service or telecopier communication, addressed as follows:

if to the Pledgor:

Attention:
Telecopier No.:

if to NSCCL:

National Securities Clearing Corporation Limited

Exchange Plaza, Bandra-Kurla Complex,

Bandra (East) Mumbai 400 051

Attention: Manager, Collaterals Department
Telecopier No.: 0091-22-26598243/44

or, as to any such party, at such other address as shall be designated by such party in a written notice to each other party complying as to delivery with the terms of this Section. All such notices and other communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three (3) business days after being deposited in the mail, postage prepaid, if mailed; when receipt is confirmed, if telecopied; and on the next business day if timely delivered to an air courier guaranteeing overnight delivery.

(b) Severability.  The provisions of this Collateral Annex are severable, and if any clause or provision shall be held invalid, illegal or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect in that jurisdiction only such clause or provision, or part thereof, and shall not in any manner affect such clause or provision in any other jurisdiction or any other clause or provision of this Collateral Annex in any jurisdiction.

(c) Headings.  The headings in this Collateral Annex have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.

(d) Counterpart Originals.  This Collateral Annex may be signed in two or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one and the same agreement.

(e) Benefits of Collateral Annex.  Nothing in this Collateral Annex, express or implied, shall give to any person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim under this Collateral Annex.

(f) Amendments, Waivers and Consents.  Any amendment or waiver of any provision of this Collateral Annex and any consent to any departure by the Pledgor from any provision of this Collateral Annex shall be effective only if made or duly given in compliance with all of the terms and provisions of hereof, and NSCCL shall not be deemed, by any act, delay, indulgence, omission or otherwise, to have waived any right or remedy hereunder or to have acquiesced in any default or Event of Default or in any breach of any of the terms and conditions hereof. Failure of NSCCL to exercise, or delay in exercising, any right, power or privilege hereunder shall not preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by NSCCL of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that NSCCL would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law.

(g) Continuing Security Interest; Termination.  This Collateral Annex shall create a continuing first priority perfected security interest in and to the Collateral and shall remain in full force and effect until the Termination Date. This Collateral Annex shall be binding upon the parties hereto and their respective transferees, successors and assigns, and shall inure, together with the rights and remedies of NSCCL hereunder, to the benefit of NSCCL, the Pledgor and their respective successors, transferees and assigns.

Upon the Termination Date, the pledge, assignment and security interest granted hereby shall terminate and all rights to the Collateral shall revert to the Pledgor. At such time, NSCCL shall, in accordance with the Pledgor’s instructions, promptly reassign and redeliver to the Pledgor all of the Collateral hereunder that has not been sold, disposed of, retained or applied by NSCCL in accordance with the terms of this Collateral Annex and the Indian Deed of Pledge and execute and deliver to the Pledgor such documents as the Pledgor shall reasonably request to evidence such termination. Such reassignment and redelivery shall be without warranty by or recourse to NSCCL, except as to the absence of any liens on the Collateral created by or arising through NSCCL, and shall be at the reasonable expense of the Pledgor.

(h) Survival Provisions.  All representations, warranties and covenants contained herein shall survive the execution and delivery of this Collateral Annex, and shall terminate only upon the termination of this Collateral Annex. The obligations of the Pledgor under Sections 3 and 9 hereof shall survive the termination of this Collateral Annex.

(i) Waivers.  The Pledgor waives presentment and demand for payment of any of the Secured Obligations, protest and notice of dishonor or default with respect to any of the Secured Obligations, and all other notices to which the Pledgor might otherwise be entitled, except as otherwise expressly provided herein or in the Indenture.

(j) Final Expression.  This Collateral Annex, together with the Indian Deed of Pledge and any other agreement executed in connection herewith, is intended by the parties as a final expression of this Collateral Annex and is intended as a complete and exclusive statement of the terms and conditions thereof.

(k) GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL; WAIVER OF DAMAGES.  

    (I) THIS COLLATERAL ANNEX SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF INDIA, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK OR SUCH OTHER JURISDICTION AS DETERMINED BY THE TREASURY REGULATIONS, AND, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK OR SUCH OTHER JURISDICTION AS DETERMINED BY THE TREASURY REGULATIONS, ANY DISPUTE ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THE PLEDGOR AND NSCCL IN CONNECTION WITH THIS COLLATERAL ANNEX, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE LAWS OF INDIA. NOTWITHSTANDING THE FOREGOING, THE MATTERS IDENTIFIED IN 31 C.F.R. SECTIONS 357.10 AND 357.11 (AS IN EFFECT ON THE DATE OF THIS COLLATERAL ANNEX) SHALL BE GOVERNED SOLELY BY THE LAWS SPECIFIED THEREIN AND THE MATTERS IDENTIFIED IN SECTION 9-305(a)(3) OF THE N.Y. UCC WILL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

(II) THE PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF PROCESS IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS COLLATERAL ANNEX AND FOR ACTIONS BROUGHT UNDER THE U.S. FEDERAL OR STATE SECURITIES LAWS BROUGHT IN ANY FEDERAL OR STATE COURT LOCATED IN THE CITY OF NEW YORK (EACH A "NEW YORK COURT") AND CONSENTS THAT ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE MADE BY REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE PLEDGOR AT THE ADDRESS INDICATED IN SECTION 14(a). THE PLEDGOR SUBMITS TO THE JURISDICTION OF ANY NEW YORK COURT AND TO THE COURTS OF ITS CORPORATE DOMICILE WITH RESPECT TO ANY ACTIONS BROUGHT AGAINST IT AS DEFENDANT IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THE PLEDGOR AND NSCCL IN CONNECTION WITH THIS COLLATERAL ANNEX, AND WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE LAYING OF VENUE, INCLUDING ANY PLEADING OF FORUM NON CONVENIENS, WITH RESPECT TO ANY SUCH ACTION AND WAIVES ANY RIGHT TO WHICH IT MAY BE ENTITLED ON ACCOUNT OF PLACE OF RESIDENCE OR DOMICILE.

 (III) THE PLEDGOR AGREES THAT NSCCL SHALL HAVE THE RIGHT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TO PROCEED AGAINST THE PLEDGOR OR THE COLLATERAL IN A COURT IN ANY LOCATION REASONABLY SELECTED IN GOOD FAITH (AND HAVING PERSONAL OR IN REM JURISDICTION OVER THE PLEDGOR OR THE COLLATERAL, AS THE CASE MAY BE) TO ENABLE NSCCL TO REALIZE ON SUCH COLLATERAL, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF NSCCL. THE PLEDGOR AGREES THAT IT WILL NOT ASSERT ANY COUNTERCLAIMS, SETOFFS OR CROSSCLAIMS IN ANY PROCEEDING BROUGHT BY NSCCL TO REALIZE ON SUCH PROPERTY OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF NSCCL, EXCEPT FOR SUCH COUNTERCLAIMS, SETOFFS OR CROSSCLAIMS WHICH, IF NOT ASSERTED IN ANY SUCH PROCEEDING, COULD NOT OTHERWISE BE BROUGHT OR ASSERTED.

(l) Effectiveness.  This Collateral Annex shall become effective upon the effectiveness of the Indian Deed of Pledge.

SCHEDULE 1 TO NEW YORK COLLATERAL ANNEX

List of Collateral Accounts

Instructions:

All the blanks in the format are required to be duly filled by the member along with the signature of the authorised signatory

ANNEXURE 34

FORMAT OF ACCOUNT CONTROL AGREEMENT FOR PROVIDING FOREIGN SOVEREIGN SECURITIES AS COLLATERAL

THIS ACCOUNT CONTROL AGREEMENT (this “Agreement”) is dated as of _________, 200_, among __________________ (“Pledgor”) with an address of __________________________, ____________________, as depository bank (“Depository Bank”), with an address of ______________________, and National Securities Clearing Corporation Limited, under the below-described Deed of Pledge Agreement along with New York Collateral Annex (in such capacity, “Secured Party”), with an address of Exchange Plaza, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051

The Depository Bank has established and maintains for the Pledgor collateral account number __________ (the “Account”)

The Pledgor, Depository Bank and Secured Party are entering into this Agreement to provide for the control of the Account and to grant and perfect the security interest of Secured Party therein.

Therefore, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows:

1. Security Interest. To secure the prompt and complete payment, performance and observance of all of the Obligations (as defined in the Deed of Pledge Agreement), the Pledgor hereby grants to the Secured Party, for its benefit, a security interest in all of its right, title and interest in, to and under the Account, together with all “investment property” (as defined in Article 9 of the Uniform Commercial Code of the State of New York (the “UCC”)) and cash held therein and all proceeds of any of the foregoing.

2. The Account

(a) Depository Bank hereby represents and warrants to Secured Party and Pledgor that (a) the Account has been established in the name of Pledgor and (b) to the best of Depository Bank’s knowledge, except for the claims and interest of Secured Party and Pledgor in the Account (subject to any claim in favor of Depository Bank permitted under Section 3), Depository Bank does not know of any claim to or interest in the Account. All parties agree that the Account is a “securities account” within the meaning of Article 8 of the UCC and that all property, including cash, held by Depository Bank in the Account shall be treated as “financial assets” within the meaning of Article 8 of the UCC. The Depository Bank confirms and agrees that (i) it is a “securities intermediary” within the meaning of Article 8 of the UCC and (ii) for purposes of Article 8 of the UCC, the State of New York is the Depository Bank’s jurisdiction. The Depository Bank makes no representation or warranty, and shall have no responsibility or liability, with respect to the effectiveness of this Agreement in granting or perfecting such security interest.

(b) All securities or other property underlying any financial assets credited to the Account shall be registered in the name of the Depository Bank, endorsed to the Depository Bank or in blank or credited to another securities account maintained in the name of the Depository Bank and in no case shall any financial asset credited to the Account be registered in the name of the Pledgor, payable to the order of the Pledgor or specially endorsed to the Pledgor except to the extent the foregoing have been specially endorsed to the Depository Bank or in blank.

3. Priority of Lien. Depository Bank hereby acknowledges the security interest granted to Secured Party by Pledgor. Depository Bank hereby waives and releases all liens, encumbrances, claims and rights of setoff it may have against the Account or any financial asset carried in the Account or any credit balance in the Account and agrees that, except for payment of its customary fees and charges including overdraft fees and reimbursement of amounts advanced to settle authorised transactions for the Account, it shall not assert any such lien, encumbrance, claim or right against the Account or any financial asset carried in the Account or any credit balance in the Account. Depository Bank shall not agree with any third party that Depository Bank shall comply with entitlement orders concerning the Account originated by such third party without the prior written consent of Secured Party and Pledgor.

4. Control. Depository Bank shall comply at all times with entitlement orders originated by Secured Party concerning the Account without further consent by Pledgor. Depository Bank shall make trades of financial assets held in the account at the direction of Pledgor, or Pledgor’s authorised representative, and comply with entitlement orders concerning the Account from Pledgor, or Pledgor’s authorised representatives, until such time as Secured Party delivers a written notice substantially in the form attached hereto as Exhibit A to Depository Bank that Secured Party is thereby exercising exclusive control over the Account (the “Notice of Exclusive Control”). After Depository Bank receives the Notice of Exclusive Control, Depository Bank shall, after having had a reasonable opportunity to act on the notice, cease complying with entitlement orders or other directions concerning the Account originated by Pledgor or Pledgor’s representatives.

5. Statements and Notices of Adverse Claims. Depository Bank shall send copies of all monthly statements concerning the Account to each of Pledgor and Secured Party at the address set forth in the heading of this Agreement. Upon receipt of written notice of any lien, encumbrance or adverse claim against the Account or in any financial asset carried therein, Depository Bank shall make reasonable efforts to notify Secured Party and Pledgor thereof.

6. Limited Responsibility of Depository Bank. Depository Bank shall have no responsibility or liability to Secured Party for making trades of financial assets held in the Account at the direction of Pledgor, or Pledgor’s authorised representatives, or complying with entitlement orders concerning the Account from Pledgor, or Pledgor’s authorised representatives that are received by Depository Bank before Depository Bank receives a Notice of Exclusive Control. Depository Bank shall have no responsibility or liability to Pledgor for complying with a Notice of Exclusive Control or complying with entitlement orders concerning the Account originated by Secured Party. Depository Bank shall have no responsibility or liability to Secured Party with respect to the value of the Account or any asset held therein. Depository Bank shall have no duty to investigate or make any determination as to whether a default exists under any agreement between Pledgor and Secured Party and shall comply with a Notice of Exclusive Control even if it believes that no such default exists. This Agreement does not create any obligation or duty of Depository Bank other than those expressly set forth herein.

7. Indemnification of Depository Bank. Pledgor hereby agrees to indemnify, defend and hold harmless Depository Bank, its directors, officers, agents and employees against any and all claims, causes of action, liabilities, lawsuits, demands and damages, including without limitation, any and all court costs and reasonable attorney’s fees, in any way related to or arising out of or in connection with this Agreement or any action taken or not taken pursuant hereto, except to the extent as a result of Depository Bank’s gross negligence or willful misconduct.

8. Termination. The rights and powers granted herein to Secured Party have been granted in order to perfect its security interest in the Account, are powers coupled with an interest and shall not be affected by the lapse of time. The obligations of Depository Bank under Sections 3, 4 and 6 above shall continue in effect until the earlier of (i) the date on which Pledgor makes suitable arrangements with the consent of Secured Party following the resignation of Depository Bank and (ii) Secured Party has notified Depository Bank in writing that this Agreement is to be terminated.

9. Entire Agreement. This Agreement, any schedules or exhibits hereto and the instructions and notices required or permitted to be executed and delivered hereunder set forth the entire agreement of the parties with respect to the subject matter hereof.

10. Amendments. No amendment, modification or (except as otherwise specified in Section 8 above) termination of this Agreement, nor any assignment of any rights hereunder, shall be binding on any party hereto unless it is in writing and is signed by each of the parties hereto, and any attempt to so amend, modify, terminate or assign except pursuant to such a writing shall be null and void. No waiver of any rights hereunder shall be binding on any party hereto unless such waiver is in writing and signed by the party against whom enforcement is sought.

11. Severability. If any term or provision set forth in this Agreement shall be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall be construed in all respects as if such invalid or unenforceable term or provision were omitted.

12. Successors. The terms of this Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns.

13. Notices. Any notice, request or other communication required or permitted to be given under this Agreement shall be in writing and signed by an authorised person and shall be deemed to have been properly given (i) when delivered in person, or (ii) when sent by telecopy or other electronic means and electronic confirmation of error free receipt is received or (iii) upon receipt of notice sent by certified or registered mail, return receipt requested, postage prepaid, addressed to the party at the address set forth next to such parties’ name at the heading of this Agreement. Any party may change its address for notices in the manner set forth above.

14. Counterparts. This Agreement may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Agreement by signing and delivering one or more counterparts. Delivery of an executed counterpart of this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement.

15. Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

16. Representations. Each party hereby represents and warrants that the individual executing this Agreement on its behalf has the requisite power and authority to do so and to bind such party to the terms of this Agreement.

17. U.S.A Patriot Act. The parties hereto acknowledge that in accordance with Section 326 of the USA Patriot Act the Depository Bank, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with Deutsche Bank Trust Company Americas. The parties to this Agreement agree that they will provide the Depository Bank with such information as it may request in order for the Depository Bank to satisfy the requirements of the USA Patriot Act.

[Remainder of page intentionally left blank.]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

[ ], as Pledgor

By: ______________________________

Name:

Title:

[ ], as Depository Bank

By: ______________________________

Name:

Title:

[ ], as Secured Party

By: ______________________________

Name:

Title:

EXHIBIT A

NOTICE OF EXCLUSIVE CONTROL

, 200

Attention:

Reference is made to that certain agreement, dated [ ], (the “Account Control Agreement”) by and among __________________ (“Pledgor”), ____________________, as Depository Bank (“Depository Bank”), and _______________________, in its capacity as [____________] under a [______________] Agreement (in such capacity, “Secured Party”).

Pursuant to the terms of the Account Control Agreement we hereby give you notice to cease honoring the Pledgor’s instructions with respect to the Account, and to immediately comply with the terms and conditions set forth in the Account Control Agreement relevant to the transfer of control of the Account to the Secured Party, including but not limited to redirection of such funds.

Please acknowledge receipt of this notice by signing below and returning an original to:

[Add full address and contact detail]
Very truly yours,

[ ], as Secured Party

By:

Name:

Title:

RECEIPT ACKNOWLEDGED ON 200 :

[ ],

By:

Name:

Title:

Instructions:

1) The clearing member shall execute three copies of the account control agreement and provide all the originals to NSCCL. NSCCL will execute all three originals and return all three originals to the Clearing members. The clearing member shall be required to submit all the three originals to the designated custodian.

2) This agreement is to be stamped in New York

3) All the blanks in the format apart from NOTICE OF EXCLUSIVE CONTROL are required to be duly filled by the member along with the signature of the authorised signatory

ANNEXURE 35

FORMAT OF CLEARING MEMBER- CONSTITUENT AGREEMENT FOR CLIENTS PROVIDING FOREIGN SOVEREIGN SECURITIES AS COLLATERAL

This CLEARING MEMBER – CONSTITUENT (CUSTODIAL PARTICIPANT) AGREEMENT (this “Agreement”) is made as of this ___________ day of ______, 2008, between ______________, a company/ partnership firm/ individual having its registered office/ office/ residence at ___________________ registered as a clearing member (hereinafter called the “Clearing Member”, which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns) with the National Securities Clearing Corporation Ltd. (hereinafter called “NSCCL”) and __________________________, a company/ partnership firm/ individual having its registered office/ office/ residence at ___________________ (hereinafter called the “Constituent”, which expression shall unless repugnant to the context or meaning thereof include its successors, legal representatives and permitted assigns).

Whereas

1. The Constituent is a(n) _______ and desires to effect purchase or sale of securities in the Futures and Options segment of the National Stock Exchange of India Ltd. (hereinafter called “NSEIL”) through one or more trading members of NSEIL and clear and settle such trades through Clearing Member who, in turn, agrees to clear and settle the trades executed by the Constituent through such trading member or members, subject to the provisions contained in the Rules, Bye Laws and Regulations of NSCCL (Futures & Options Segment).

2. Clearing Member is a clearing member of NSCCL and is, inter alia, authorised to carry on the activities of clearing and settlement of trades that are executed on the Futures & Options Segment of NSEIL by a trading member who has appointed the Clearing Member to clear and settle its trades or on behalf of foreign institutional investors such as the Constituent who have appointed the Clearing Member to clear and settle their trades.

3. The Constituent has approached the Clearing Member to undertake clearing & settlement of trades and to discharge the Constituent’s duties and obligations towards NSCCL on its behalf and the Clearing Member, in turn, has agreed to clear and settle the trades made by the Constituent through a trading member or trading members subject to the provisions contained in the Rules, Bye Laws and Regulations of NSCCL (Futures & Options Segment) and the terms and conditions contained herein.

4. The parties to this agreement are desirous of reducing the terms and conditions agreed, in writing, as contained herein :

Now, therefore, this agreement witnesseth as FOLLOWS:

1. At the request of the Constituent and in consideration of the Constituent agreeing to pay certain fees and charges mentioned herein and abide by the terms and conditions contained in this agreement, Rules, Bye-Laws and Regulations of NSCCL and NSEIL, the Clearing Member hereby undertakes to clear and settle the trades of the Constituent executed or made through one or more trading members on the Futures & Options Segment of NSEIL, provided such trades shall be in accordance with all rules and regulations applicable to trades on such Futures & Options Segment, and to do all the acts, deeds and activities arising from and/or incidental to the clearing and settlement of such trades.

2. Rights of the Clearing Member

(1) The Clearing Member shall be entitled to demand/ receive from the Constituent such deposits in such form as the Clearing Member may specify from time to time.

(2) Without prejudice to the generality of the above, the Constituent shall place with the Clearing Member an amount of_____ as deposit which shall be maintained at any point of time. Subject to the provisions of the Circulars, Bye Laws, Rules, Regulations and other requirements of NSCCL/NSEIL (as in effect from time to time, collectively, the “NSCCL/NSEIL Rules”), in case of any shortfall in such deposit, the Clearing Member shall be entitled to initiate any action necessary to protect its interests in this regard against the Constituent.

(3) The Clearing Member shall be entitled to receive from the Constituent such fees, charges, or commission, in respect of various services which it renders or agrees to render to the Constituent, at such intervals as may be mutually agreed upon.

(4) The Clearing Member shall specify, subject to the requirements prescribed by NSCCL from time to time, the exposure margins up to which open positions can be taken by the Constituent. Such limits may be increased or reduced by the Clearing Member from time to time. The Clearing Member shall have the authority to initiate any action necessary to protect its interests in this regard, which may, inter alia, include restriction on further trading and closeout of open positions of the Constituent.

(5) The Clearing Member shall be entitled to collect from the Constituent margin(s) of such amounts and such kinds as the Clearing Member may deem necessary, which at any point of time shall not be less than the amount stipulated by NSCCL from time to time. The Clearing Member shall have authority to collect such additional margin(s) as the Clearing Member may deem necessary or as per the NSCCL/NSEIL Rules.

(6) The Clearing Member shall be entitled to receive from the Constituent such amounts as may be required to be paid towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, as per the NSCCL/NSEIL Rules.

(7) The Clearing Member shall have authority to close out/ liquidate the open positions of the Constituent in accordance with the NSCCL/NSEIL Rules, in the case of non-payment of any amounts owed by the Constituent towards margins, additional margins, daily mark to market settlement of futures contracts, final settlement of futures contract, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, fees, commission and/ or charges, by making necessary requests to NSEIL/ NSCCL for initiating such action. In such case, any loss arising due to the closing out of open positions shall be payable by the Constituent and may be recovered from the Constituent by the Clearing Member.

(8) The Clearing Member shall have the right to inspect the books of accounts, records, documents and computerised data of the Constituent for which the Clearing Member shall have free access to the premises occupied by the Constituent or by any other person on his behalf.

3. Obligations of the Clearing Member

(1) Amounts deposited by the Constituent pursuant to this Agreement shall be kept in one or more custodial or margin accounts established in the name of the Clearing Member for purposes of holding deposits and margin received from foreign institutional investors such as the Constituent (hereinafter, a “Collateral Account”), which Collateral Accounts shall be maintained separate and distinct from the Clearing Member’s proprietary accounts; provided, however, that each Collateral Account shall be subject to a first priority pledge, lien and security interest in favor of NSCCL to secure any and all amounts owing by the Clearing Member to NSCCL from time to time in respect of trades cleared and settled by the Clearing Member on behalf of this Constituent and other Constituents , as per the NSCCL/NSEIL Rules. The details of margins collected for the trades executed by the Constituent shall be provided to NSCCL as per the NSCCL/NSEIL Rules.

(2) The Clearing Member shall inform the Constituent about the exposure margins (including any increase or reduction in such limits) up to which open positions can be taken by the Constituent.

(3) The Clearing Member shall be liable to pay to the Constituent any amount becoming due and receivable by the Constituent towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts and such other settlement as per the NSCCL/NSEIL Rules.

(4) The Clearing Member shall be required to refund to the Constituent any excess margin amounts held by the Clearing Member from time to time in accordance with the NSCCL/NSEIL Rules, subject to any mutual agreement to the contrary.

(5) The Clearing Member may settle the accounts on a periodical basis, if mutually agreed between the Clearing Member and the Constituent, which settlement shall be in accordance with the NSCCL/NSEIL Rules.

(6) In the event of default by the Clearing Member or Clearing Member is declared a defaulter by NSEIL/NSCCL, any amount paid by the Constituent pursuant to this Agreement and deposited with NSCCL shall remain safe and shall not be utilised to meet the Clearing Member’s own liabilities and/or the liabilities of other Constituents. In such cases, the Clearing Member shall render all assistance to the Constituent for transfer of Constituent’s positions to some other Clearing Member, if such event occurs.

(7) In the event of failure by the Clearing Member in the payment of any obligations to the NSCCL as well as the Constituent, the Constituent shall, with the prior approval of NSCCL, have the right to transfer its own open positions immediately to another Clearing Member. The Clearing Member shall be obliged to pay to the Constituent for any costs incurred for transfer of the open positions, if such event occurs.

(8) In case the Clearing Member is declared a defaulter by NSEIL/ NSCCL, and the Constituent transfers its open positions to some other Clearing Member, the Clearing Member shall be obliged to pay for any costs incurred for transfer of the open positions.

(9) If due to the default of the Clearing Member, the open positions of the Constituent are closed-out and any loss is incurred due to such close-out, the Clearing Member shall reimburse such loss to the Constituent except to the extent the Clearing Member’s default is caused by the Constituent.

(10) The Clearing Member shall treat the information pertaining to the Constituent as confidential. The Clearing Member shall not disclose the same to any other person except to the governmental, statutory, regulatory or legal authorities on a request made by these authorities in writing.

(11) The Clearing Member shall be required to provide reports/ statements of mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of options contracts, exercise settlement of option contracts or such other settlement, margin amounts and open positions to the Constituent, for such period as may be mutually agreed.

4. Rights of the Constituent

(1) The Constituent shall be entitled to have all the trades executed by it through any trading member or members on the Futures & Options Segment of NSEIL cleared and settled through the Clearing Member; provided such trades shall have been made in accordance with all rules and regulations applicable to trades on such Futures & Options Segment and Constituent is otherwise in compliance with all of its obligations under this Agreement.

(2) The Constituent shall be entitled to receive notice from time to time from the Clearing Member about the exposure margins (including any increase or reduction in such limits) up to which open positions can be taken by the Constituent.

(3) The Constituent shall be entitled to receive reports/ statements of mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, margin amounts and open positions from the Clearing Member, for such period as may be mutually agreed.

(4) The Constituent shall be entitled to receive from the Clearing Member such amounts towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts and such other settlement, on a net basis, as per the NSCCL/NSEIL Rules.

(5) In the event of the Clearing Member being declared in default by NSCCL, the Constituent, except to the extent the Clearing Member’s default is caused by the Constituent, shall be entitled to transfer its open positions to some other clearing member and recover any costs incurred for such transfers from the Clearing Member.

(6) In the event of failure by the Clearing Member in the payment of any of its obligations to NSCCL as well as the Constituent, the Constituent shall, with the prior approval of NSCCL have the right to transfer its own open positions immediately to another clearing member. The Constituent shall also have the right to recover from Clearing Member any costs incurred for transfer of the open positions.

(7) In case the open positions of the Constituent are closed-out due to the default of the Clearing Member, the Constituent, except to the extent the Clearing Member’s default is caused by the Constituent, shall be entitled to recover such loss from the Clearing Member.

5. Obligations of the Constituent

(1) The Constituent shall pay to the Clearing Member such deposits in such form as the Clearing Member may specify from time to time.

(2) The Constituent shall place with the Clearing Member an amount as deposit in accordance with Section 2(2) above.

(3) The Constituent shall pay to the Clearing Member such fees, charges, or commission in respect of various services which it renders or agrees to render to the Constituent at such intervals as may be mutually agreed upon by them.

(4) The Constituent shall pay to the Clearing Member margins of such amounts as may be prescribed by NSCCL from time to time including additional margins, if any or such higher amount of margins as may be mutually agreed with the Clearing Member. The margins shall be deposited by the Constituent within such time and in such form as may be specified by the Clearing Member.

(5) The Constituent shall be liable to pay to the Clearing Member such amounts towards daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts and such other settlement, as per the NSCCL/NSEIL Rules.

(6) The accounts shall be settled on a periodical basis as may be mutually agreed between the Clearing Member and the Constituent.

(7) The Constituent shall be obliged to reimburse to the Clearing Member any loss caused due to the closing out / liquidation of the Constituent’s open positions initiated by the Clearing Member, on account of non-payment of any obligations owing by the Constituent towards margins, additional margins, daily mark to market settlement of futures contracts, final settlement of futures contracts, premium settlement of option contracts, exercise settlement of option contracts or such other settlement, fees, charges, commission, penalties and expenses, and any other amounts, as per the requirement of NSCCL.

(8) The Constituent shall do all such acts, deeds and activities that are necessary for the purpose of strict compliance with the Rules, Bye Laws & Regulations of NSEIL/ NSCCL by the Clearing Member, and the Constituent hereby represents and warrants to the Clearing Member that it is fully aware of, and shall remain at all times fully aware of, the requirements for such strict compliance.

(9) If due to the default of the Constituent, the open position of the Constituent is closed-out and any loss is incurred due to such closeout, the Constituent shall be liable to reimburse such loss to the Clearing Member.

6. Termination of the Agreement

The agreement entered into between the Clearing Member and the Constituent may be terminated by either party by giving at least one month written notice to the other party or as may be mutually consented. Such cancellation or termination shall not have any effect on transactions executed before the time and date of termination and the parties shall enjoy the same rights and shall have same obligations in respect of such executed transactions.

7. Notice

Any communication between the Clearing Member and the Constituent shall be made in any one or more of the following ways:

(a) An electronic mail or fax

(b) Delivering it by post

(c) Sending it by registered post

(d) Sending it under certificate of posting

(e) Sending it by express delivery post / courier services.

(f) Sending it by telegram

(g) Affixing it on the door at the last known business or residential address

(h) Advertising it at least once in any prominent daily newspaper having circulation in the area where the party’s principal place of business or operations is situate.

8. Force Majeure

No liability shall result to either party for delay in performance or non-performance of the obligations under the agreement caused and/or contributed to by any event of force majeure. For purposes of this Clause, "Force Majeure" means and includes wars, insurrections, revolution, fires, floods, epidemic, quarantine restrictions, declared general strikes in relevant industries, act of God, act of governmental, statutory, regulatory or legal authority and such other acts or events beyond the control of the non-performing party.

9. No assignment

Neither party shall be entitled to assign or otherwise transfer this agreement or any benefits, rights, obligations or interests herein whether in whole or in part to any other agency without the prior written consent of the other.

10. Non-waiver

No forbearance, delay or indulgence by either party in enforcing the provisions of this Agreement shall prejudice or restrict the rights of that party nor shall any waiver of its rights operate as a waiver of any subsequent breach and no rights, powers, remedies herein conferred upon or reserved for either party is exclusive of any other right, power or remedy available to that party and each right, power or remedy shall be cumulative.

11. Arbitration

(3) All disputes, differences or questions arising out of or in relation to the agreement including the interpretation of the terms contained herein with regard to the obligations, failure or breach thereof by any of the parties and/or of any matter whatsoever arising out of the Agreement, shall in the first instance be resolved mutually by the parties.

(4) If the parties fail to resolve the same mutually, then the same shall be referred to the arbitration in accordance with the Rules, ByeLaws and Regulations of NSCCL.

12. Governing Law; Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of India as shall be in effect from time to time, including, without limitation, any bye-laws, rules, regulations, circulars and instructions of NSEIL and NSCCL or any rules, regulations, circulars and instructions of the Government of India or any branch, agency or subdivision thereof, the Securities and Exchange Board of India and the Reserve Bank of India. This agreement shall be subject to the exclusive jurisdiction of the courts in India.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

IN WITNESS THEREOF, the parties to this agreement have caused these presents to be executed as of the day and year first above written.

Signed for and on behalf of

CLEARING MEMBER :

By :

Signature :

Title :

Witness :

Signed for and on behalf of

CONSTITUENT :

By :

Signature :

Title :

Witness :

ANNEXURE 36

FORMAT OF LETTER TO BE PROVIDED BY CLEARING MEMBER FOR RELEASE OF FOREIGN SOVEREIGN SECURITIES

(To be typed on clearing members letter head)

Date :

To

National Securities Clearing Corporation Ltd.

Exchange Plaza,

Bandra Kurla Complex,

Bandra (E),

Mumbai - 400 051.

Dear Sir/Madam,

Re: Release of foreign sovereign securities

You are requested to release the following foreign sovereign securities submitted towards margin deposit in the F&O segment

Account No

CUSIP

Description

Quantity to be released

Thanking you,

Yours faithfully,

Authorised Signatory

ANNEXURE 37

FILE FORMAT FOR REQUESTING COLLATERAL RELEASES

File name: F_RRQ_DDMMYYYY_NN.csv

Where F 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	F
Member Code	CMID
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/CMF/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. CMID stands for the clearing 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 CL01 report.

e.g., the instrument id for NSCCL.Ref no. 6004.000000 is 6004

4. Non Applicable fields should be blank.

ANNEXURE 38

SPAN MARGIN COMPUTATION METHODOLOGY

Initial margin computation methodology

The initial margin would be calculated by the NSCCL system (PRISM) using SPAN®* which is portfolio based risk management system.

Basic objective of SPAN system

The objective of SPAN is to identify overall risk in a portfolio of futures and options contracts for each member. The system treats futures and options contracts uniformly, while at the same time recognizing the unique exposures associated with options portfolios like extremely deep out-of-the-money short positions, inter-month risk and inter-commodity risk.

Because SPAN is used to determine performance bond requirements (margin requirements), its overriding objective is to determine the largest loss that a portfolio might reasonably be expected to suffer from one day to the next day.

In standard pricing models, three factors most directly affect the value of an option at a given point in time:

1. Underlying market price
2. Volatility (variability) of underlying instrument
3. Time to expiration

As these factors change so too will the value of futures and options maintained within a portfolio. SPAN constructs scenarios of probable changes in underlying prices and volatilities in order to identify the largest loss a portfolio might suffer from one day to the next. It then sets the margin requirement at a level sufficient to cover this one-day loss.

Mechanics of SPAN

The complex calculations (e.g. the pricing of options) in SPAN are executed by the Clearing Corporation. The results of these calculations are called Risk arrays. Risk arrays, and other necessary data inputs for margin calculation are then provided to members in a file called the SPAN Risk Parameter file. This file will be provided to members on a daily basis.

Members can apply the data contained in the Risk parameter files, to their specific portfolios of futures and options contracts, to determine their SPAN margin requirements.

Hence members need not execute complex option pricing calculations, which would be performed by NSCCL. SPAN has the ability to estimate risk for combined futures and options portfolios, and re-value the same under various scenarios of changing market conditions.

Risk Arrays

The SPAN risk array represents how a specific derivative instrument (for example, an option on NIFTY

index at a specific strike price) will gain or lose value, from the current point in time to a specific point in time in the near future (typically it calculates risk over a one day period called the ‘look ahead time’), for a specific set of market conditions which may occur over this time duration.

The specific set of market conditions evaluated, are called the risk scenarios, and these are defined in terms of :

(a) how much the price of the underlying instrument is expected to change over one trading day, and

(b) how much the volatility of that underlying price is expected to change over one trading day.

The results of the calculation for each risk scenario – i.e. the amount by which the futures and options contracts will gain or lose value over the look-ahead time under that risk scenario - is called the risk array value for that scenario. The set of risk array values for each futures and options contract under the full set of risk scenarios, constitutes the Risk Array for that contract.

In the Risk Array, losses are represented as positive values, and gains as negative values. Risk array values are typically represented in the currency (Indian Rupees) in which the futures or options contract is denominated.

SPAN further uses a standardized definition of the risk scenarios, defined in terms of

(i) the underlying ‘price scan range’ or probable price change over a one day period,

(ii) and the underlying price ‘volatility scan range’ or probable volatility change of the underlying over a one day period.

These two values are often simply referred to as the ‘price scan range’ and the ‘volatility scan range’. There are sixteen risk scenarios in the standard definition. These scenarios are listed as under:

1. Underlying unchanged; volatility up

2. Underlying unchanged; volatility down

3. Underlying up by 1/3 of price scanning range; volatility up

4. Underlying up by 1/3 of price scanning range; volatility down

5. Underlying down by 1/3 of price scanning range; volatility up

6. Underlying down by 1/3 of price scanning range; volatility down

7. Underlying up by 2/3 of price scanning range; volatility up

8. Underlying up by 2/3 of price scanning range; volatility down

9. Underlying down by 2/3 of price scanning range; volatility up

10. Underlying down by 2/3 of price scanning range; volatility down

11. Underlying up by 3/3 of price scanning range; volatility up

12. Underlying up by 3/3 of price scanning range; volatility down

13. Underlying down by 3/3 of price scanning range; volatility up

14. Underlying down by 3/3 of price scanning range; volatility down

15. Underlying up extreme move, double the price scanning range (cover 35% of loss)

16. Underlying down extreme move, double the price scanning range (cover 35% of loss)

SPAN uses the risk arrays to scan probable underlying market price changes and probable volatility changes for all contracts in a portfolio, in order to determine value gains and losses at the portfolio level. This is the single most important calculation executed by the system.

As shown above in the sixteen standard risk scenarios, SPAN starts at the last underlying market settlement price and scans up and down three even intervals of price changes (‘price scan range’).

At each ‘price scan point’, the program also scans up and down a range of probable volatility from the underlying market's current volatility (‘volatility scan range’). SPAN calculates the probable premium value at each price scan point for volatility up and volatility down scenario. It then compares this probable premium value to the theoretical premium value (based on last closing value of the underlying) to determine profit or loss.

Deep-out-of-the-money short options positions pose a special risk identification problem. As they move towards expiration, they may not be significantly exposed to "normal" price moves in the underlying. However, unusually large underlying price changes may cause these options to move into-the-money, thus creating large losses to the holders of short option positions. In order to account for this possibility, two of the standard risk scenarios in the Risk Array (sr. no. 15 and 16) reflect an "extreme" underlying price movement, currently defined as double the maximum price scan range for a given underlying. However, because price changes of these magnitudes are rare, the system only covers 35% of the resulting losses.

After SPAN has scanned the 16 different scenarios of underlying market price and volatility changes, it selects the largest loss from among these 16 observations. This "largest reasonable loss" is the ‘Scanning Risk Charge’ for the portfolio - in other words, for all futures and options contracts.

Composite Delta

SPAN uses delta information to form spreads between futures and options contracts. Delta values measure the manner in which a future's or option's value will change in relation to changes in the value of the underlying instrument. Futures deltas are always 1.0; options deltas range from -1.0 to +1.0. Moreover, options deltas are dynamic: a change in value of the underlying instrument will affect not only the option's price, but also its delta.

In the interest of simplicity, SPAN employs only one delta value per contract, called the "Composite Delta." It is the weighted average of the deltas associated with each underlying ‘price scan point’. The weights associated with each ‘price scan point’ are based upon the probability of the associated price movement, with more likely price changes receiving higher weights and less likely price changes receiving lower weights. Please note that Composite Delta for an options contract is an estimate of the contract's delta after the lookahead - in other words, after one trading day has passed.

Calendar Spread or Intra-commodity or Inter-month Risk Charge

As SPAN scans futures prices within a single underlying instrument, it assumes that price moves correlate perfectly across contract months. Since price moves across contract months do not generally exhibit perfect correlation, SPAN adds an Calendar Spread Charge (also called the Inter-month Spread Charge) to the Scanning Risk Charge associated with each futures and options contract. To put it in a different way, the Calendar Spread Charge covers the calendar (inter-month etc.) basis risk that may exist for portfolios containing futures and options with different expirations.

For each futures and options contract, SPAN identifies the delta associated each futures and option position, for a contract month. It then forms spreads using these deltas across contract months. For each spread formed, SPAN assesses a specific charge per spread which constitutes the Calendar Spread Charge.

The margin for calendar spread shall be calculated on the basis of delta of the portfolio in each month. Thus a portfolio consisting of a near month option with a delta of 100 and a far month option with a delta of –100 would bear a spread charge equivalent to the calendar spread charge for a portfolio which is long 100 near month futures contract and short 100 far month futures contract.

Short Option Minimum Charge

Short options positions in extremely deep-out-of-the-money strikes may appear to have little or no risk across the entire scanning range. However, in the event that underlying market conditions change sufficiently, these options may move into-the-money, thereby generating large losses for the short positions in these options. To cover the risks associated with deep-out-of-the-money short options positions, SPAN assesses a minimum margin for each short option position in the portfolio called the Short Option Minimum charge, which is set by the NSCCL. The Short Option Minimum charge serves as a minimum charge towards margin requirements for each short position in an option contract.

For example, suppose that the Short Option Minimum charge is Rs. 50 per short position. A portfolio containing 20 short options will have a margin requirement of at least Rs. 1,000, even if the scanning risk charge plus the inter month spread charge on the position is only Rs. 500.

Net Buy Premium (only for option contracts)

In the above scenario only sell positions are margined and offsetting benefits for buy positions are given to the extent of long positions in the portfolio by computing the net option value.

To cover the one day risk on long option positions (for which premium shall be payable on T+1 day), net buy premium to the extent of the net long options position value is deducted from the Liquid Networth of the member on a real time basis. This would be applicable only for trades done on a given day. The Net Buy Premium margin shall be released towards the Liquid Networth of the member on T+1 day after the completion of pay-in towards premium settlement.

Computation of Initial Margin - Overall Portfolio Margin Requirement

The total margin requirements for a member for a portfolio of futures and options contract would be computed as follows:

(i) SPAN will add up the Scanning Risk Charges and the Intracommodity Spread Charges.

(ii) SPAN will compares this figure (as per i above) to the Short Option Minimum charge

(iii) It will select the larger of the two values between (i) and (ii)

(iv) Total SPAN Margin requirement is equal to SPAN Risk Requirement (as per iii above), less the ‘net option value’, which is mark to market value of difference in long option positions and short option positions.

(v) Initial Margin requirement = Total SPAN Margin Requirement + Net Buy Premium

SPAN® is a registered trademark of the Chicago Mercantile Exchange, used herein under License. The Chicago Mercantile Exchange assumes no liability in connection with the use of SPAN by any person or entity.

ANNEXURE 39

FORMAT OF APPLICATION FROM FII/SUB-ACCOUNT OF FII/ MUTUALFUND / SCHEME OF MUTUAL FUNDS

( to be given by the FII/Sub-account FII/MF/Scheme of MF on the letter head)

Date:

National Securities Clearing Corporation Limited

Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai 400 051.

Dear Sirs,

Sub: Appointment of M/s. (Name of the Clearing member) as Clearing Member in Future & Option Segment.

We wish to inform you that we have appointed M/s. (Name of Clearing Member) as clearing member for clearing and settlement of trades done in National Stock Exchange – Futures & Option segment on behalf of us.

In view of this we request you to allot the CP code for F&O segment.

Details of our constituent are as follows:

FII/MF Name

Sub Account/ Scheme Name (if applicable)

CP code (as provided for in Cash Market Segment)

SEBI Registration No. of FII/MF

SEBI Sub Account Code (if applicable)

Registered Office of FII /MF

Registered Office of Sub Account Name: (if applicable)

Name of the contact person & designation

Telephone No.

Fax No.

Email ID of the contact person

Thanking you,

Yours faithfully

Authorised Signatories:

Encl:

1. SEBI registration certificate of FII/MF
2. SEBI letter for FII sub account code
3. NOC from the custodian

ANNEXURE 40

FORMAT OF LETTER FROM CLEARING MEMBER FOR APPLICATION OF CUSTODIAL PARTICIPANT CODE

(to be given by the clearing member on the letter head)

Date:

National Securities Clearing Corporation Limited

Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai 400 051

Dear Sirs,

Sub: Appointment as Clearing Member for M/s. (Name of FII/ Sub-account/ MF/ scheme of MF)

We wish to inform you that we have been appointed as Clearing Member for M/s (Name of FII/ Sub-account/ MF/ scheme of MF) in Futures & Options segment of National Securities Clearing Corporation Limited.

In view of this we request you to allot the CP code in F&O segment.

Details of our constituent are as follows:

FII /MF Name

Sub Account/Scheme Name (if applicable)

CP code (as provided for in Cash Market Segment)

SEBI Registration No. of FII/MF

SEBI Sub Account Code (If applicable)

Registered Office of FII /MF

Registered Office of Sub Account Name: (If applicable)

Name of the contact person & designation

Telephone No.

Fax No.

Email ID of the contact person

We would undertake clearing and settlement of Future & Option trades for the above mentioned constituent in F&O segment and therefore request you to allot CP code for F&O segment.

Thanking you,

Yours Sincerely

Authorised Signatories

CM Name :

CM Code :

Name:

Designation:

Encl:

1. Letter from FII/Sub-account/MF/Scheme of MF confirming our appointment.

2. No Objection Confirmation from clients local custodian

ANNEXURE 41

FORMAT OF NO OBJECTION FROM THE CUSTODIAN

( to be given by the custodian on the letter head)

Date:

National Securities Clearing Corporation Limited

Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai 400 051

Dear Sirs,

Sub: No objection for CP Code …………… (Name of the Client)

We refer to a request received from our client to provide a No Objection for the appointment of M/s. ………… (Name of clearing member) as the clearing member for clearing and settlement of its Future & option trades

We confirm, under the present market structure for dealing and settlement in derivatives, we do not have any objection to the appointment of M/s ……… (Name of clearing member) for clearing and settlement of its F&O trades for the following client

FII/MF Name

Sub Account/Scheme Name (If applicable)

CP code (as provided for in Cash Market Segment)

SEBI Registration No. of FII/MF

SEBI Sub Account Code (If applicable)

Registered Office of FII /MF

Registered Office of Sub Account Name:

(If applicable)

Name of the contact person & designation

Telephone No.

Fax No.

Email ID of the contact person

Thanking you,

Yours Sincerely

Authorised Signatories

ANNEXURE 42

FORMAT OF NO OBJECTION FROM THE OLD CLEARING MEMBER IN CASE OF CHANGE OF CLEARING MEMBER

( to be given by the old clearing member on the letter head)

Date:

National Securities Clearing Corporation Limited

Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai 400 051

Dear Sirs,

Sub: No objection for shifting of Custodial Participant Code

We wish to inform you that our client M/s………………….. intends to shift the clearing account for M/s………………….from our selves to M/s………………………. in the Futures & Options segment of National Securities Clearing Corporation Limited.

We have no objection towards M/s………………appointing M/s………………………. as their Clearing Member in the Futures & Options Segment.

FII/MF Name

Sub Account/Scheme Name (If applicable)

CP code

SEBI Registration No. of FII/MF

SEBI Sub Account Code (If applicable)

Registered Office of FII /MF

Registered Office of Sub Account Name: (If applicable)

Name of the contact person & designation

Telephone No.

Fax No.

Email ID of the contact person

Thanking you,

Yours Sincerely

Authorised Signatories

ANNEXURE 43

FORMAT FOR APPLICATION OF SHIFTING OF CP CODE FROM THE NEW CLEARING MEMBER

( to be given by the new clearing member on the letter head)

Date:

National Securities Clearing Corporation Limited

Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai 400 051.

Dear Sirs,

Sub: Appointment as Clearing Member for M/s. (Name of FII/Sub-account/MF/scheme of MF)

We wish to inform you that we have been appointed as Clearing Member for M/s Name of FII/Sub-account/MF/scheme of MF) in Futures & Options segment of National Securities Clearing Corporation Limited.

In view of this we request you to transfer the open positions of the below mentioned constituent to us.

Details of the constituent are as follows:

FII/MF Name

Sub Account/Scheme Name (If applicable)

CP code

SEBI Registration No. of FII/MF

SEBI Sub Account Code (If applicable)

Registered Office of FII /MF

Registered Office of Sub Account Name: (If applicable)

Name of the contact person & designation

Telephone No.

Fax No.

Email ID of the contact person

We would undertake clearing and settlement of Future & Option trades for the above mentioned constituent and therefore request you to transfer / shift custodial participant code for F&O segment. We also confirm all trades and positions from the date of transfer will be cleared and settled by us.

Thanking you,

Yours Sincerely

Authorised Signatories

CM Name :

CM Code :

Name:

Designation:

Encl:

1. Letter from M/s. (Name of FII/Sub-account/MF/scheme of MF) confirming our appointment.

2. No Objection Confirmation from clients local custodian

ANNEXURE 44

FORMAT FOR APPLICATION OF SHIFTING OF CP CODE BY THE FII/SUB-ACCOUNT/MF/SCHEME OF MF

(to be given by the FII/sub-account/MF/scheme of MF on the letter head)

Date:

National Securities Clearing Corporation Limited

Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai 400 051

Dear Sirs,

Sub: Appointment of M/s. (Name of the Clearing member) as Clearing Member in Future & Option Segment.

We wish to inform you that we have appointed M/s. (Name of Clearing Member) as Clearing Member for clearing and settlement of trades done in National Stock Exchange – Futures & Option segment on behalf of us.

In view of this we request you to transfer our open positions from our present clearing member M/s. (Name of old CM) to M/s. (Name of new CM). Our present Clearing member has given the NOC letter to us to transfer all our open positions to our new Clearing Member M/s (Name of new CM)

Details of our organisation are as follows:

FII/MF Name

Sub Account/Scheme Name (If applicable)

CP code

SEBI Registration No. of FII/MF

SEBI Sub Account Code (If applicable)

Registered Office of FII /MF

Registered Office of Sub Account Name: (If applicable)

Name of the contact person & designation

Telephone No.

Fax No.

Email ID of the contact person

Thanking you,

Yours faithfully

Authorised Signatories:

Encl:

1. SEBI registration certificate of FII/MF
2. SEBI letter for FII sub account code
3. NOC from the present Clearing member.
4. NOC from the custodian

ANNEXURE 45

FORMAT OF NRI CLIENT CODE APPLICATION TO BE SUBMITTED BY NRI TO THE CLEARING MEMBER

Date

To,

Address of the Clearing Member

Sub: Application for the allotment of NRI code.

I wish to appoint you as my Clearing Member for clearing and settlement of trades done on the futures and options segment of NSE. My details are as follows:

Name (as appear in Passport) :

Passport no :

NRE/NRO Bank A/c No :

Telephone NO :

Email ID :

Current Address :

Permanent Address in India :

We request you to kindly get an NRI client code allotted by NSE/NSCCL for the same.

I undertake that all the trades executed through the above allotted NRI Client code will be on my* behalf.

(*If the NRI Client code application is for an HUF then the details of the Karta (Manager) has to be given in the application and in the undertaking should be provided as follows: “I undertake that all the trades executed through the above allotted code will be on behalf of HUF”)

Yours sincerely,

Name & Signature

ANNEXURE 46

FORMAT OF APPLICATION FOR ALLOTMENT OF CUSTODIAN PARTICIPANT CODE FOR THE NRI CLIENTS

(to be given by the clearing member on the letter head)

National Securities Clearing Corporation Limited

Futures & Options Segment

4^th Floor, Exchange Plaza, Bandra Kurla Complex,

Bandra (East),Mumbai - 400 051.

CM Code: ____________

CM Name: ____________________

 Dear Sir,

Sub: Application for allotment of Custodial Participant code for the NRI Client

 Please allot a Custodial Participant Code in the Future & options segment. The details are specified as under:

NRI Client Name#	Full Name (As given in the Passport) ____________
Complete address where currently residing
Complete address in India
Contact Telephone Numbers in India
E-mail
Passport No *
Date of Issue	DD/MM/YYYY
Place of Issue	CITY: __________
Valid up-to	DD/MM/YYYY
Details of NRE/NRO Bank account numbers along with the proof of the account
PAN Number

# If the NRI is an HUF, the application has to be made along with the passport of the Manager (Karta) of the HUF.

* :

(1) It is Compulsory to enclose a Copy of Passport duly verified with original by Clearing Member/Attested by Notary public/Notarized at the country of residence of NRI.

(2) In case the NRI client gets another passport issued subsequent to the allotment of the CP Code based on his previous passport, he should not use the same to get another CP Code issued.

The Information furnished above is true to the best of my/our knowledge and belief and I/we undertake to inform you of any changes therein immediately in writing.

I undertake that I shall settle all the trades done by the above client in the Futures and Options segment of the exchange with effect from_________ and comply with such requirements as stipulated by the Exchange/Clearing Corporation from time to time including those on position limits etc.

Thanking You, 

Yours faithfully,

For_____________________

  _____________(Name)

______________(Designation)

 Dated:

Encl:

1. Certified passport copy
2. Certified PAN copy
3. Certified NRE/NRO bank proof
4. Application from the client

ANNEXURE 47

FORMAT OF NO OBJECTION CERTIFICATE (NOC) TO BE SUBMITTED BY EXISTING CLEARING MEMBER IN CASE OF CHANGE IN CLEARING MEMBER BY THE NRI CLIENT

(to be given by the clearing member on the letter head)

Date:

To,

National Securities Clearing Corporation Limited

Futures & Options Segment

4^th Floor, Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai - 400 051.

CM Code:____________

CM Name: ____________________

 Dear Sir,

Sub: NOC for change of Clearing Member by NRI client

Our NRI client …………………. to whom CP code …………… has been allotted, vide letter no… dated…… has requested for termination of affiliation with us as their Clearing Member with effect from……... We wish to inform you that the client ………….. may clear their derivatives trades through any other Clearing Member and we have no objection for the same. Copy of the letter from the NRI client is enclosed.

Thanking You, 

 Yours faithfully,

For_____________________

  _____________(Name)

______________(Designation)

 Encl: as above

ANNEXURE 48

FORMAT OF APPLICATION OF CLOSE OUT FACILITY BY CLEARING MEMBER

Date:

Manager

Risk Management Group

National Securities Clearing Corporation Limited

Exchange Plaza,

Bandra Kurla Complex,

Bandra (East), Mumbai 400 051

Dear Sir,

Sub: List of trading members to be made eligible for close-out

This is with reference to your circular no. NSE/CMPT/9043 dated June 18,2007, you are requested to set the close-out eligibility status of the following trading member clearing through us, as under:

Sr. No.

Trading Member Code

Trading Member Name

Close-out eligibility status ( Yes/ No)

Thanking you,

Yours sincerely

Authorised Signatories

CM Name :

CM Code :

Name:

Designation: