INVITATION FOR APPLICATIONS FOR MEMBERSHIP OF

POWER EXCHANGE INDIA LTD

POWER EXCHANGE INDIA LTD(PXIL) has been set up to provide an on line platform for trading electricity. PXIL is promoted by National Stock Exchange of India Limited (NSE) and National Commodity & Derivatives Exchange Limited (NCDEX).

PXIL invites applications for Membership from persons who fulfill eligibility criteria contained herein for participating on the Exchange. The membership shall entitle the Members to trade/ clear for themselves and / or on behalf of their clients and/ or provide advisory services to their constituents.

The words “Member” and “Applicant” used interchangeably hereinafter refer and apply to Members.

The Applicants who are admitted as Members shall adhere to the conditions, stipulations and guidelines communicated / notified from time to time by PXIL and / or Central Electricity Regulatory Commission and / or any other regulatory / statutory authorities. The Applicant shall be responsible to ensure that he is eligible to participate on the Exchange under the extant laws of the country.

  1. CRITERIA FOR ADMISSION AS MEMBER ON PXIL

A. ELIGIBILITY

1)The following persons are eligible to become Members subject to the provisions, applicable legislations, rules, circulars, notifications, guidelines, etc., prescribed thereunder and any other applicable law in force and the Rules, and Byelaws of PXIL or directives and guidelines issued thereunder : -

(a)Individuals/ Sole proprietorships

(b)Partnership Firms

(c)Companies or Institutions or Statutory Bodies incorporated under Companies Act, 1956 or under any central or state legislation and permitted under their Memorandum of Association or applicable constitution document for engaging in generation/ trading / distribution of electricity and / or engage in any activity relating to the participation on the Exchange. Applicants who are in the process of being incorporated under Companies Act, 1956 or the relevant enactment as mentioned above or in the process of amending their Memorandum of Association or their constitution document to include the activities mentioned above as permitted activities, may also apply. However, such membership will be effective only upon completion of the aforesaid process to the satisfaction of PXIL.

(d)CENTRAL / STATE ELECTRICITY UTILITIES (including franchisees thereof) / ORGANISATION engaged in various activities of the power sector including power generation, distribution, trading etc.

(e)Such other persons / entities as may be permitted by the relevant authority of PXIL.

2) No person shall be admitted as a Member if

(a)he is less than 21 years of age

(b)he is not a citizen of India

(c)he is not at least a graduate or having an equivalent qualification (relaxable at the discretion of PXIL, in case of persons with adequate experience in power sector / commodities/financial markets)

(d)he has been adjudged bankrupt or a receiver order in bankruptcy has been made against him or he has been proved to be insolvent even though he has obtained his final discharge

(e)he has been convicted of an offence involving a fraud or dishonesty or any crime of similar nature

(f)he has been debarred from trading in Power by CERC or by any other statutory / regulatory authority

(g)he has incured disqualification under the provisions of the Electricity Act, 2003 or Rules made thereunder so as to disentitle such persons from seeking membership of PXIL.

(h)PXIL determines that it is not in public or business interest to admit him as a member on PXIL

provided that:

1)In case of individuals & sole proprietorships: The individual / sole proprietor shall fulfill all the criteria of eligibility as stated above.

2)In case of partnership firms: all the partners should fulfill all the criteria of eligibility as stated above except (c) provided that at least one of the partners fulfills eligibility criteria stipulated in (c) above.

3)In case of body corporates, companies and institutions, all the directors fulfill the eligibility criteria stated above except (b) & (c) provided one of the directors fulfill the criteria stipulated in (c) above.

(i)he has incurred disqualification under the provisions of Chapter III 6A of the Central Electricity Regulatory Commission (Procedure, Terms & Conditions for grant of Trading Licence and other related matters) Regulations, 2004

(j)it is a body corporate or a company

  1. which has committed any act which renders it liable to be wound up under the provisions of the law
  2. in respect of which a provisional liquidator or receiver or official liquidator has been appointed by a competent court

(k)he or the partnership firm or body corporate or a company as the case may be does not possess a minimum net worth as prescribed herein or from time to time.

C.FINANCIAL SOUNDNESS

An Applicant must possess a minimum net worth as prescribed by PXIL which may be increased or decreased by PXIL at its absolute discretion at any time including after granting membership to the Applicant. The net worth for this purpose should be calculated as per the method stipulated in Annexure C-1A

D.FEE / DEPOSIT STRUCTURE ANDNET WORTH REQUIRMENT

Applicants accepted for admission will be required to pay the following fee / deposits and also maintain net worth as given below:

(Rupees. in Lakhs)

Table being Updated Soon

* For a maximum of self+5 Clients. For every additional Client, Rs 2 lakhs per Client has to be given as additional interest free deposit

Apart from the processing fee of Rs 5000/-, an amount of Rs 1,00,000/-(Rs One Lakh) would be payable along with the application, which would be adjusted against onetime fee/ annual fee on successful grant of membership. In the event that the membership is not approved, the sum of Rs One Lakh would be refunded to the applicant.

50% of the Interest free deposit has to be given at the time of approval of membership. The remaining 50% would be collected one week prior to commencement of trading on the exchange. Based upon volumes traded by members, the Exchange may alter the deposit structure in subsequent years and may include options to furnish the same in the form of Fixed Deposit/ Bank Guarantee or other financial instruments as may be considered appropriate by the Exchange.

Annual Fee for the current financial year would be charged on a pro-rata basis depending upon the date of commencement of operations of the exchange

In case of members who are members of any other power exchange(s), they should satisfy the requirement of combined minimum net worth requirements of all such exchanges including PXIL.

Members would bear the cost for putting up any dedicated infrastructure, as per the prevailing policy of PXIL. PXIL retains the right to amend / revise any charges from time to time.

An applicant must pay the membership and other fees, deposits etc, as applicable at the time of admission. The security deposits will be included while determining the net worth of the Members and would, subject to Rules and Bye Laws, of PXIL, be refunded to the Members upon surrender of membership.

MISCELLANEOUS

A.INFRASTRUCTURE

PXIL may specify such standards for investor service and infrastructure with regard to any category of Members, as it may deem necessary, from time to time. This may include infrastructure like office premises, trading terminals, VSAT, and / or other communication equipment etc.

B.ADMISSION PROCEDURE

The admission procedure shall consist of appraisal of valid applications and other documents annexed thereto and subject to process prescribed by PXILL from time to time.. The final acceptance / rejection of any membership / recommendation for membership by the membership committee shall be at the absolute discretion of theRelevant Authority of PXIL and the decision of the Relevant Authority shall be final and binding. No correspondence shall be entertained in respect of any such decision.

C.SUBMISSION OF APPLICATION FORM

Eligible applicants are required to submit their applications in the format prescribed as per Annexure hereto, complete in all respects, along with all relevant documents and accompanied by an amount of Rs. 1,05,000/- (Rupees One Lakh Five Thousand only), out of which Rs 5000/- non-refundable and Rs 1,00,000/- refundable (refunded on non-approval of membership), by demand draft / pay order drawn in favour of “POWER EXCHANGE INDIA LIMITED”, payable at Mumbai. Incomplete applications and multiple applications are liable to be rejected. The application along with relevant documents and the demand draft / pay order must be submitted at the following office of PXIL.

Address
Power Exchange India Limited
ExchangePlaza, C-1, Block G
Bandra Kurla Complex, Bandra (E)
Mumbai 400 051
Tel. No. 22 - 26598317
Fax. No.22 - 26598397

Notwithstanding anything contained herein, PXIL shall have absolute discretion and right to relax, vary, change, add to and delete any or all of the eligibility criteria for Application / Membership for any person or partners or directors or any member of governing body. Further, the admission of the applicant as a member would be at the sole discretion of PXIL.

CHECKLIST

CHECKLIST WHILE SUBMITTING APPLICATION

Government organization - Only the following documents as per the checklist given below need to be submitted:

No. / Particulars / Points to be checked
1. / Application form / Dated, Stamped and Signed by the authorised signatories
2. / Demand draft/Pay order/Cheque / Amounting to Rs. 1,05,000/-
3. / Copy of PAN Card
4. / Board Resolution seeking membership of PXILL

Applicants having valid Power Trading License – Onlythe following documents as per the checklist given below need to be submitted:

No. / Particulars / Points to be checked
1. / Application form / Dated, Stamped and Signed by the authorized signatories
2. / Demand draft/Pay order/Cheque / Amounting to Rs. 1,05,000/-
3. / Copy of PAN Card
4. / Copy of Power Trading License

Others –The following documents as per the checklist given below need to be submitted

No. / Particulars / Points to be checked / Constitution
Individual / Partnership Firm / Corporates / Institution
1 / Application form / Dated, Stamped and Signed by the authorised signatories / Yes / Yes / Yes
2 / Demand draft/Pay order/Cheque / Amounting to Rs. 1,05,000/- / Yes / Yes / Yes
3 / C-1 Certificate of netwoth / As given in the Annexure C- 1A / Yes / Yes / Yes
4 / C-2 – Details of Other Stock Exchange Membership / Details of stock / commodity/ Power exchange membership other than PXIL / Yes / Yes / Yes
5 / C-3 – Details of Directors / No / No / Yes
6 / C-4 – Details of shareholding/sharing pattern / Shareholding / sharing pattern / No / Yes / Yes
Individual / Partnership Firm / Corporates / Institution
7 / C-5 Details of the stock exchange in which applicant company is listed / Only for listed corporates / No / No / Yes
8 / Enclosures in addition to above / 1.Attested copies of Memorandum and Articles of Association & Certificate for Commencement of Business for corporates / institutions and partnership deed for partnership firms. / No / Yes / Yes
2.Attested copy of the board resolution authorizing the application for membership / No / No / Yes
3.Attested copies of proof of age, education and experience of individuals, proprietors, directors, governing body members, partners etc. / Yes / Yes / Yes
4.Details of pending court cases, disciplinary action taken by any stock / commodity exchange / Power regulatory authorities, bankruptcy proceedings etc (if any) against the member, its partners, its directors including ** / Yes / Yes / Yes
5.Copies of the Balance Sheet for last three financial years or since the time the applicant entity was constituted. / No / Yes / Yes
6.Copies of the latest returns of Income Tax along with proof of filing the same. / Yes / Yes / Yes
7.Photographs of the signatories to be pasted on the application form / Yes / Yes / Yes

** Note: Documents as per clause 8.4 are not applicable to the entities having valid License issued byCERC/SERCs.

APPLICATION FORM FOR MEMBERSHIP OF POWER EXCHANGE INDIA LTD

Please tick any one of the option mentioned below

Trading cum Clearing Member

Trading and Self Clearing Member

Trading and Self Clearing Member – Plus

Advisory Member

  1. Name of Applicant :

(In BLOCK Letters)

  1. Constitution: Individual/Partnership firm/Corporate/ Government Organisation/Others(please specify)
  1. Date of Birth/Incorporation/Registration: DD/MON/YYYY
  1. Permanent Account No :
  1. Brief Description of principal activity of the applicant :
  1. Brief description of group, if any, to which the applicant belongs :
  1. Registered Office :

(Applicable only in case of corporate/partnership firms)

Flat/Door/Block no.
Name or Premise/ Building
Road/Street/Lane/Post Office
Area/Locality/Taluka
City
District
State/Union Territory
Pin code
STD Code
Telephone No.
Mobile No.
Fax
E-mail ID
Website
  1. Correspondence/Mailing address –

(Pls give the complete details as point no. 7, in case the same is different from registered address)

Flat/Door/Block no.
Name or Premise/ Building
Road/Street/Lane/Post Office
Area/Locality/Taluka
City
District
State/Union Territory
Pin code
STD Code
Telephone No.
Mobile No.
Fax
E-mail ID
Website
  1. Details of the Chief Executive Officer/Managing Director/Managing Partner/Proprietor

Name
Designation
Tel. No.
Fax No.
Mobile No.
E-mail ID
PAN
  1. Net worth of the applicant is Rs.______Lakhs as on ______(date-DD/MON/YYYY)

(The Networth certificate duly certified by chartered account is enclosed)

  1. Is the Applicant (Please tick wherever applicable):

a)Power Generator

b)Power Distributor

c)Power Trader

d)Commodity Broker

e)Stock Broker

f)Commodity & Stock Brokers

g)Others (Please give full details in annexure)

  1. Name and address of the bankers.
  1. Details of Income Tax Paid. (Kindly enclose the copy of the latest Income Tax Assessment Order )
  1. Please give the following details of the applicant/partner/promoters/shareholders/directors/any of the core staff who will be dealing with PXIL (Yes/No- In case answers to any of the above questions is yes, then please provide complete details)

Sr. No. / Particulars / Yes/No
a) / Whether the applicant/partners/promoters/directors have been declared/rendered incompetent to enter into contract under any law in force in India?
b) / Whether the applicant/partners/promoters/directors have ever been declared a defaulter by any Association or Exchange recognized by the Government under any law?
c) / Whether any court case is pending against applicant/directors/partners/promoters/staff?
Note - Not applicable to Statutory Bodies such as Electricity Boards and Electricity Departments and entities having valid Licensee issued by CERC / SERCs.
d) / Whether the applicant/partners/promoters/directors have ever been pronounced guilty of a criminal offence involving moral turpitude?
e) / Whether any of the applicant/partners /promoters /directors / employees is/are involved in any financial irregularities
f) / Whether any disciplinary action has been taken by any stock exchange against the applicant or any of the partners/promoters / directors / shareholders / employees of the applicant?
g) / Whether the applicant/partners/promoters/directors have ever been adjudged bankrupt or have been proved to be insolvent at any time?
h) / Whether the applicant/partners/promoters/directors have ever been involved in litigations, suits or proceedings or have been involved in any financial liability of contingent or unascertained nature?
Note - Not applicable to Statutory Bodies such as Electricity Boards and Electricity Departments and entities having valid Licensee issued by CERC / SERCs.
i) / Whether the applicant/partners/promoters/directors ever been at any time convicted of an offence involving fraud or dishonesty or financial irregularities?
j) / Whether the applicant/partners/promoters/directors have ever been associated with or member of any other Stock/Commodity/Power exchange?
l) / Whether the applicant/partners/promoters/directors have ever been denied/rejected membership of any Stock/Commodity/Powerexchange?
m) / In case you have been engaged as principal or employee in any business other than that of securities, have compounded with its creditors for less than full discharge of debts?
n) / Whether the applicant/partners/promoters/directors have ever been suspended/expelled/declared defaulter on any other stock exchange or have been debarred from trading in Securities/ Commodities/ Power by any Regulatory Authorities like CERC/ SERC/ SEBI/ RBI/ FMC etc?
o) / Whether the applicant/partners/promoters/directors have committed any act which may render you liable to be wound – up?
p) / Have you had a provisional liquidator or receiver or official liquidator appointed to it by a competent court?
  1. Details of processing, and otherfees paid in favour of PXILL.

Payment in the form of / Demand Draft / Pay order / Cheque
Instrument no.
Issuing Bank
Amount
Instrument date

DECLARATION

I/We are aware that any misstatement or misrepresentation or suppression of facts in connection with this application for membership or breach of any undertaking or condition of admission to PXIL membership entails rejection of application or expulsion of membership.

I/We hereby state that the above-mentioned particulars and annexure hereto are true, correct and complete to the best of my/our knowledge and information. I/We also state that no relevant material fact has been suppressed.

Signatories (With name in Block Letter)

1.

2.

Name of the applicant

Date:

Place:

Stamp:

Photographs of signatories

APPLICATION TO BE SIGNED BY:

For Individuals-By the Individual him/her self

For Partnership firms-By any two working partners of the firm

For Government Undertakings-By a Director/Authorised Representative duly

Authorized by Board Resolution

For Corporates/Institution-Managing Director, Whole Time Director/

Any other person authorized by the Board

(Submit certified true copy of the relevant Board resolution)

ANNEXURES TO THE DECLARATION (To Be Furnished Along With the Application)

C-1: Certificate of Net worth, along with computation.

C-2: Details of Power/Stock / Commodities Exchange Memberships, other than PXIL

C-3: Details of Directors/ Partners/ Proprietor

C-4: Share holding pattern of company/Sharing Pattern of the Partnership Firm

C-5 : Details of the Stock Exchanges in which Applicant Company is listed

Note: The applicant shall submit the Certificate of Net worth computed in accordance with the guideline given in the enclosed Annexure C-1A. The Annexures C-1 and C-4 are to be certified by the Statutory Auditors.