NATIONAL STOCK EXCHANGE OF INDIA LIMITED

 

Dated: October 04, 2007

Circular No. NSCC/CMP/475                                                

 

_______________________________________________________________________

                                                                                               

Circular No NSCC/CM/C&S/395 dated October 04, 2007 issued by National Securities Clearing Corporation Limited (NSCCL) to the Clearing Members of NSCCL is enclosed. All Trading Members of the Exchange who are also the Clearing Members of the Clearing Corporation are required to comply with the said Circular and any modifications thereto as may be issued by the Clearing Corporation from time to time.  Non-compliance with the said Circular will be treated as breach of the Rules, Bye-Laws and Regulations of the Exchange. The Clearing Corporation will monitor the compliance and take suitable action for non - compliance.

 

For National Stock Exchange of India Limited

 

 

 

Suprabhat Lala

Asst. Vice President

NATIONAL SECURITIES CLEARING CORPORATION LIMITED

CAPITAL MARKET SEGMENT

 

                                                                                                        

Circular No NSCC/CM/C&S/395                                                     October 04, 2007

Download Ref. No. NSE/CMPT/9572

 

To

All Trading Members, PCMs

 

Sub: Modified format of Bank Guarantee

 

This is in partial modification to our circular no NSCC/C&S/2005/353 (Circular Download no.NSE/CMPT/6681) dated September 21, 2005.

 

The format for submission of bank guarantees towards security deposits and margin deposits in Capital Market Segment have been modified. The modified format is given in Annexure I.

 

The modified format shall be applicable only in respect of bank guarantees issued by banks specified in the Annexure II. In respect of other empanelled banks, the existing formats specified in the above mentioned circular shall be applicable.

 

On maturity of the existing bank guarantees submitted to NSCCL issued by the banks specified in the Annexure II, members shall be required to replace the bank guarantees with fresh bank guarantees as per the modified format specified.

 

The above changes shall be effective from October 15, 2007. 

 

Members are requested to take note of the same.

For any further clarifications please contact the following officials of the Clearing Corporation. Mr. Dhirendra Rautela, Ms. Meghana Mukadam, Mr. Ryan Varghese on telephone numbers 26598265, 26598263 Fax: 26598243 / 44

 

Yours sincerely,

For National Securities Clearing Corporation Ltd

 

 

Pareezad Deboo

Manager

 

Annexure I

 

Format of Guarantee for Margin Deposit and Security Deposit

 

BG NO: __________________

Date     : __________________

To:

National Securities Clearing Corporation Ltd.

Exchange Plaza, Plot C-1, G Block,

Bandra Kurla Complex,

Bandra (East),

Mumbai – 400 051.

 

Dear Sirs:

 

This guarantee bearing No. _________________________ is issued by ____________________________, a body corporate constituted under the Companies Act 1956, having its Head Office at ___________________________________________ (hereinafter referred to as the “Bank” which term shall wherever the context so permits includes its successors and assigns) in favour of National Securities Clearing Corporation Limited, a company incorporated under the Companies Act, 1956 and having its registered office at Exchange Plaza, Plot C-1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051  (hereinafter referred to as “NSCCL” which expression shall include its successors and assigns).

 

Whereas

 

a.         Mr./Ms.__________________________________________ s/o / d/o / w/o ________________________________________________,residing at __________________________and having his/her office at _______________________________(Complete Address), (hereinafter referred to as the “Clearing Member”, which expression shall include his/her successors and assigns) /* is/are a Clearing Member of NSCCL.

 

 OR

M/s ______________________________________________, a partnership firm registered under the Indian Partnership Act, 1932 and having their office at _____________________________________________ (Complete Address), (hereinafter referred to as the “Clearing Member”, which expression shall include their successors and assigns ) /* is/are a Clearing Member of NSCCL.

 

OR

 

 

BG NO: __________________

Date     : __________________

 

 

M/s___________________________________________________., incorporated as a company under the Companies Act, 1956 and having its registered office at ___________________________(Complete Address), (hereinafter referred to as the “Clearing Member”, which expression shall include its successors and assigns ) * is/are a Clearing Member of NSCCL.

 

b.         One of the conditions of Clearing Membership of NSCCL is that the Clearing Member maintains with NSCCL security deposit/ margin deposit in the form shares and other securities of a value not less than Rs. _______ after applying suitable margins as prescribed by NSCCL, for Capital Market Segment

 

c.         At the request of the Clearing Member, NSCCL has agreed to accept a bank guarantee in lieu of such security deposit/ margin deposit, as the case may be in favour of NSCCL from an approved commercial bank for an equivalent amount of Rs._________________________________________________.

 

d.         The Clearing Member has requested the Bank to furnish to NSCCL a guarantee for Rs._________________ ____________________________.

 

 Therefore these presents:

 

1.                  This guarantee shall be governed by the terms and conditions of the Master Agreement dated ________executed between the Bank and NSCCL and the same shall form a part and parcel of this guarantee as though the same have been incorporated in this guarantee.

 

2.                  The liability of the Bank under this guarantee shall not exceed Rs._______________.

 

3.                  This guarantee shall be valid for a period of _________ months i.e. upto ____.  However, the Bank is liable to pay the guaranteed amount if NSCCL serves upon Bank a written claim or demand on or before ____________ (i.e. within ___ _____ after the date of expiry of the bank guarantee as mentioned in clause 3 above).

 

Executed this ____ day of ______________ at __________

 

For ________(Bank)

 

 

Authorized Signatories

Seal of the Bank

·                    Strike out whichever is not applicable

 

Instructions:

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

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

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

4)      The Bank Guarantee to be stamped for Rs.100/- or the value prevailing in the State where executed, whichever is higher. Bank Guarantee to be executed on Non-Judicial stamp paper(s) or on paper franked from Stamp Office       

5)      All the blanks in the format are required to be duly filled by the issuing bank along with the signature of the authorised signatory and stamp of the bank.

6)      Each page of the bank guarantee should bear the bank guarantee number and issue date and should be signed by two authorised signatories of the bank unless the bank has specifically intimated NSCCL that only one authorised signatory shall sign the bank guarantees issued by them in favour of NSCCL.

Annexure II

 

Sr. No.

BANK NAME

1

Axis Bank Ltd

2

Bank of India Ltd.

3

Centurion Bank of Punjab Ltd

4

Citibank N.A.

5

Development Credit Bank Ltd

6

HDFC Bank Ltd

7

ICICI Bank Ltd

8

Indusind Bank Ltd

9

Kotak Mahindra Bank Ltd

10

The Hongkong And Shanghai Banking Corporation Ltd

11

Union Bank of India Ltd.