COMMENCEMENT MANUAL ON INDIA INTERNATIONAL EXCHANGE (IFSC) LIMITED

(August21, 2017)

INDIA INTERNATIONAL EXCHANGE (IFSC) LIMITED

101 First Floor, The Signature, Bldg. No.13B, Road IC, GIFT City, Gandhinagar–382355, Gujarat, India

Website -

Email –

Contact numbers - +91-22-22728010 / 22728466 / 22725162

Checklist for Members

Name of the Member

Member No. ______

Date of commencement of Business ______

Sr. No. /

Formalities to be completed

/

Pending/Completed

/

Relevant Departments / Portal

Interest Free Deposit (refundable)-10,000 USD with INDIAINX / Yes No / Membership Operations
Connectivity /
Yes No / IIEFSPortal & Networks
Trading ID’s registration form /
Yes No / Trading Operations
Bank Accounts details / Yes No / Membership Operations

UCC / Location ID registration module

/
Yes No / UCC / Location ID Portal
Pro Account Submission /
Yes No / IIEFSPortal
Letter for Appointment of Designated Officer / Yes No / Membership Operations
Application Processing Fees (Non-refundable)- 500 USD / Yes No / Membership Operations
Annual Membership Subscription Fees–1,000 USD / Yes No / Membership Operations
Undertaking regarding submission of two approved users certificates / Yes No / Membership Operations
Latest Networth certificate in L.C.Gupta format / Yes No / Membership Operations
Interest Free Deposit (refundable) of USD 75,000 with Clearing Corporation
(Applicable to CM only) / Yes No / INDIAICC
Settlement Account Details (To be opened with any one of the Clearing Banks). / Yes No / INDIAICC
Copy of TM-CM agreement / Yes No / Membership Operations
Base Minimum Capital as per trading profile
(Applicable for TM only) / Yes No / Membership Operations
Debit instructions letter( as per the format prescribed by the respective banks) / Yes No / Membership Operations

1

On obtaining the certificate of registration from SEBI / Exchange

After receiving SEBI registration certificate / Exchange Registration,at the time of commencement of business member is required to make the following deposits /payments:

Sr. No / Particulars / Amount (in USD) / Relevant Department
1 / Application Processing Fees (Non-refundable) / 500 / Membership Operations
2 / Annual Membership Fees – Early Bird Offer (Till Calendar year 2017) / 1,000 / Membership Operations
3 / Interest Free Deposit (refundable) / 10,000 / Membership Operations

The above mentioned fees shall be made through SWIFT transfer to the India International Exchange (IFSC) Limited Bank account/s as per the details given below:

a)Details for fund transfer in same bank in USD

Name of the Account Holder / India International Exchange (IFSC) Ltd. / India International Exchange (IFSC) Ltd. / India International Exchange (IFSC) Ltd. / India International Exchange (IFSC) Ltd.
Bank Name / IndusInd Bank Ltd. / ICICI Bank Limited / Kotak Mahindra Bank / Yes Bank Ltd.
Currency / USD / USD / USD / USD
Bank Account No. / 201000958072 / 970105000048 / 0712645018 / 080163900000124
Account Type / Current Account / Current Account / Current Account / Current Account

b)Nostro detail of Yes Bank for transfer from other Bank

Beneficiary Details along with following details

USD
Account with (SWIFT Field 57): / Bank of New York Mellon, New York (BIC-Code: IRVTUS3N)
Beneficiary / YES Bank Limited, GIFT – IFSC Banking Unit
(BIC-Code: YESBINBBIBU)
Account no: / 8901286249
ABA Routing Number / 21000018

c)Nostro detail of ICICI Bank for transfer from other Bank

Beneficiary details along with following details

USD
Account with (SWIFT Field 57) / Bank of America, N.A.
Beneficiary / ICICIBank Ltd, GIFT- IFSC Banking Unit
(BIC-Code: ICICINBBIBU)
Account no: / 6550491848
ABA Routing Number / BOFAUS3N

Base Minimum Capital (Refundable) – has to be maintained either in Cash (in USD)or Fixed / Term Deposit Receipt (FDR) by Stock Broker and Trading Member, as per the profile given below:

Categories / BMC Deposit (in USD)
Only Proprietary trading without Algorithmic trading (Algo) / 15,000
Trading only on behalf of Client (without proprietary trading) and without Algo / 25,000
Proprietary trading and trading on behalf of Client without Algo / 40,000
All Trading Members/Brokers with Algo / 75,000

The Fixed / Term Deposit Receipt (FDR) has to be made in the name of “India International Exchange (IFSC) Limited Account – (Name of the Trading Member)” for a minimum tenure of one year.

Note:

  1. The FDR should be duly discharged by affixing revenue stamp on the reverse of the FDR and signed by an authorized signatory of the member.
  2. FDR should be accompanied with the five-point undertaking from the Bank (Annexure-1). Kindly submit FDR to Membership Operations Department.

Opening of Bank Accounts:

  1. Clients’ Accounts – for pay-in and pay-out funds
  2. Own Account – for the member’s own transactions and for other general charges

All these accounts can be maintained in any one of the following clearing banks set up at the International Financial Services Center at Gujarat International Finance Tec – (GIFT) City:

Banks / Contact Person / Contact details / Email ID / Zone
ICICI Bank Limited / Roshan Tellis / 9819400198 / / Pan India
Kiran Shirke / 9167780461 / / Pan India
Sanjay Jha / 9833900844 / / West
Devanshi Thakkar / 9978420871 / / Gujarat
IndusInd Bank Limited / Jalketu Chinoy / 9167000627 / / Pan India
Mahesh Kumar / 9920903883 / / Pan India
Dharmendra Jakhodia / 9820189141 / / West
Ashok Joshi / 9711361299 / / North & East
Biju Warrier / 9176624629 / / South
Kotak Mahindra Bank Limited / Parag Srivastava / 9833773960 / / Pan India
Amit Mantri / 9167490382 / / Mumbai
Ajay Bhargava / 9899246151 / / Kolkata & Delhi
YES Bank Limited / Dharmil Ajmera / 9819347348 / / West – Mumbai
Kunal Shah / 9909022488 / / West – Other
Gaurav Ladha / 9831282813 / / East
Shivendra Singh / 9582390027 / / North
Deepak Mishra / 9962050650 / / South–Tamil Nadu
Ajay C M / 7045686835 / / South – Kerala
Clifford Perry Sunderrajan / 9986311333 / / South – Bangalore / Hyderabad

A member has to designate either the Client Account or Own Account as Settlement Account for the purpose of receiving pay-in, pay-out, margin payment etc. The Own account is used for own transactions and for the purpose of receiving interest/ dividend etc. The member can also open a separate Settlement Account other than the above-mentioned account.

Please note that a member shall open accounts with any of the designated clearing banks. Further, the same clearing bank has to be designated for the purpose of both settlement and margin obligations.

Undertaking for doing trades in own account

The members have to provide an undertaking to the Exchange about the BOW terminals from which they would be doing own account trading. The format for the same is attached as Annexure-2. This undertaking has to be submitted on IIEFS.

Commencement of Business

After completing the formalities, the member has to give a letter stating that they are going to commence business from a particular date. This letter should reach Membership Department within three working days prior to the commencement date. The format for the letter is enclosed as Annexure-3.

IML (Intermediate Message Layer)/ETI (Enhanced Trading Interface)

The member, if required can also apply for IML/ ETI wherein he can have third party developed Dealer Systems. The IML system interfaces between the third party developed Dealer Server Systems (DSS) and BSE's CTS. The DSS using BOLT will be trading from their own host machines using a set of messages under a protocol called the Open Message Bus. The open message bus will be updated and circulated among approved third party vendors by BSE from time to time. The application and the required details for the same is available in

Similarly the ETI application can connect to exchange without any intermediary software of the exchange. The protocol used to connect ETI is published on the website

Details pertaining to Designated Officer and Branch Offices:

Members are required to appoint Designated Officer and submit details to the Exchange (in the Annexure 4) along with the Board Resolution for the same.

Members are required to give details of all the branch offices at the time of commencement of business. Further, member is also required to keep the Exchange informed about any change (opening of new branches or closing down of existing branches) immediately with the name of the contact persons along with the contact details. The aforesaid details are to be submitted to Membership Department.

exure – I

Annexure – I

Format of letter for deposit of Fixed Deposit Receipts (FDRs) byTrading Member towards

BaseMinimum Capital (BMC)

Date:

India International Exchange (IFSC) Limited

1st Floor, Unit No. 101, The Signature, Building No. 13B,

Road 1C, Zone - 1, GIFT SEZ, GIFT City,

Gandhinagar, Gujarat – 382355

Dear Sir,

Please find enclosed the following Fixed Deposit Receipt/s (FDRs) issued in your favor towards the Base Minimum Capital:

Sr. No. / Name of the Bank / FDR No. / FDR Date / Maturity Date / Amount (USD)

Yours faithfully,

Authorised Signatory

(Member No. ______)

Annexure – II

(Format of letter to be submitted by the concerned bank along with the Fixed Deposit Receipt/s (FDRs)

Date:

India International Exchange (IFSC) Limited

1st Floor, Unit No. 101,The Signature, Building No. 13B,

Road 1C, Zone - 1, GIFT SEZ, GIFT City,

Gandhinagar, Gujarat – 382355

Dear Sir,

We refer to the below mentioned Fixed Deposit Receipt (FDR) issued in the name of “India International Exchange (IFSC) Ltd. A/c. ______(member’s name)”

Sr. No. / FDR Number / Issue Date / Principal Amount (USD) / Maturity Date

With respect to the aforesaid deposit, we hereby confirm the following:

  1. The aforesaid deposit has been created for the purpose of Base Minimum Capital maintenance with India International Exchange (IFSC) Ltd.
  1. The lien on the said deposit has been created in favor of India International Exchange (IFSC) Ltd. only at the request of depositor.
  2. The amount under the said deposit would be paid to India International Exchange (IFSC) Ltd. on written demand, without any demure and / or any further reference/ clearance from the depositor.
  1. The deposit is payable at IBU branch of______situated at Gift City SEZ, Gandhinagar.
  1. We agree that on encashment of FDR by India International Exchange (IFSC) Ltd., the interest accrued will also be released to the Exchange.
  2. We undertake that at the time of encashment of aforesaid FDR by
    depositor or any other authority/person as may be authorized by the depositor, will be done only if the aforesaid original FDR is accompanied with the release of lien letter
    issued by India International Exchange (IFSC) Ltd.
  3. We undertake that the aforesaid FDR would stand automatically renewed by the Bank on the maturity date.
  4. We shall adhere to the RBI guidelines for fixed depositsat IBU, as guided by circular number DBR.IBD.BC. 14570/23.13.004/2014-15, dated April 01, 2015, as may be amended from time to time

Yours faithfully,

For(Bank name)

Authorised Signatory (with Bank’s stamp)

Annexure – III

Renewal of Fixed Deposit Receipts (FDRs) by Bank
(On Bank’s Letter Head)

Date:

India International Exchange (IFSC) Limited

1st Floor, Unit No. 101, The Signature, Building No. 13B,

Road 1C, Zone - 1, GIFT SEZ, GIFT City,

Gandhinagar, Gujarat – 382355

Dear Sir,

We refer to Fixed Deposit Receipt (FDR) No.______issued in the name of “India International Exchange (IFSC) Ltd. A/c ______(member’s name)”

Sr. No. / FDR Number / Issue Date / Principal Amount (USD) / Maturity Date

The abovementioned FDR has been renewed for a further period of____months/years under the auto renewal facility at the request of the member. The details are as follows:

Sr. No. / FDR Number / Issue Date / Principal Amount (USD) / Maturity Date

We hereby confirm that the lien on the said FDR has been created in favor of India International Exchange (IFSC) Ltd. only.

  1. There is a minimum original maturity period of 1 year and 1 day on the said FDR.
  2. The amount under the said FDR would be paid to India International Exchange (IFSC) Ltd. on maturity of the said FDR on written demand (subject to aforementioned condition), without any demure and / or any further reference/ clearance from the depositor.
  3. Old instrument will remain valid and no new instrument with new FDR no. is issued.
  4. The FDR is payable at GIFT City, Gandhinagar – 383255
  5. Encashment by India International Exchange (IFSC) Ltd., on maturity would not require any clearance from M/s. ______(Member’s name) or any other authority/person.
  1. We agree that on encashment of FDR by India International Exchange (IFSC) Ltd., the interest accrued will also be released to the Exchange.
  1. We undertake that at the time of encashment of aforesaid by M/s.______(Member’s name) or any other authority/person, will be done only if the aforesaid FDR is accompanied with the release of lien letter issued by India International Exchange (IFSC) Ltd.
  2. We undertake that the aforesaid would stand automatically renewed by
    the Bank on the respective maturity date.
  3. We shall adhere to the RBI guidelines for opening fixed depositsat IBU, as guided by circular number DBR.IBD.BC. 14570/23.13.004/2014-15, dated April 01, 2015, as may be amended from time to time

Yours faithfully,

For______ (Bank’s name)

Authorised Signatory (with Bank’s stamp)

Annexure – IV

Format of letter for renewal of Fixed Deposit Receipts (FDRs) by Trading Member

Date:

Membership Department

India International Exchange (IFSC) Limited

1st Floor, Unit No. 101, The Signature, Building No. 13B,

Road 1C, Zone - 1, GIFT SEZ, GIFT City,

Gandhinagar, Gujarat – 382355

Dear Sir,

We refer to following Fixed Deposit Receipt issued on our behalf, in your favor towards the Base Minimum Capital deposit:

Sr. No. / FDR No. / Issue Date / Amount (USD) / Maturity Date

The above mentioned Fixed Deposit Receipt(s) has been renewed for a further period and the details are as follows:

Sr. No. / FDR No. / Issue Date / Amount (USD) / Maturity Date

Yours faithfully,

Authorised Signatory

(Member No.______)

Annexure- 2

Pro Account Format to be submitted on member’s letterhead

(To be submitted on IIEFS Portal)

Date:

To,

Trading Operations Department

India International Exchange (IFSC) Limited

1st Floor, Unit No. 101, The Signature, Building No. 13B,

Road 1C, Zone - 1, GIFT SEZ, GIFT City,

Gandhinagar, Gujarat – 382355

Sub: Pro-account Trading Terminal

Dear Sir,

The details of the trading terminals from where I / we are placing orders on ‘Own Account’ are as under:

(1) / (2) / (3) / (4) / (5) / (6)
Sr. No / INDIAINX Terminal No./ INDIAINX IML ID No. / User Name with Designation / Postal Address / Name of the Directors, Authorized Persons along with the Designation supervising stationed at the location / Default location
Yes or No & Address of Default location

I/ we hereby undertake that I/ we will not place any order on ‘Own Account’ through any other terminals and location mentioned above without the prior approval of the stock exchange

Thanking you,

Yours faithfully,

Signature

(Director/ Authorized Signatory)

Annexure-3

(To be submitted to Membership Department)

Format to be submitted on the letterhead of trading member

To

Membership Department

India International Exchange (IFSC) Limited

1st Floor, Unit No. 101, The Signature, Building No. 13B,

Road 1C, Zone - 1, GIFT SEZ, GIFT City,

Gandhinagar, Gujarat – 382355

Dear Sir,

Sub: Commencement of Business

We would like to inform you we have completed the below mentioned formalities

  1. Application for Connectivity
  2. Bank Account details as mentioned below (attach proof)

Sr. No. / Particulars / Details
1 / Name of Bank
2 / Client account
3 / Settlement account
4 / Own account
5 / Bank account for debiting SEBI turnover fees
  1. From the below we would like to trade in category ___ [mention one of the below mentioned category]:

Base Minimum Capital (Refundable) – has to be maintained either in Cash (in USD)or Fixed / Term Deposit Receipt (FDR) by Stock Broker and Trading Member, as per the profile given below:
Categories / BMC Deposit (in USD)
a) Only Proprietary trading without Algorithmic trading (Algo) / 15,000
b) Trading only on behalf of Client (without proprietary trading and without Algo / 25,000
c) Proprietary trading and trading on behalf of Client without Algo / 40,000
d) All Trading Members/ Brokers with Algo / 75,000
Members are requested to confirm the category from point no. (a) to (c) above, for ascertaining the BMC requirement.

We would like to commence our business from ______(date). Request you to do the needful.

Thanking you,

For (Member Name)

Designated Director

Annexure-4

(On letter head of the company, signed and stamped by designated director/s and designated officer)

Format for appointment of Designated Officer

Date:

Membership Department

India International Exchange (IFSC) Limited

1st Floor, Unit No. 101, The Signature, Building No. 13B,

Road 1C, Zone - 1, GIFT SEZ, GIFT City,

Gandhinagar, Gujarat – 382355

Sub: Appointment of Designated Officer

Dear Sir/ Madam

I/We have appointed Mr../Ms.______as our designated officer in keeping with the Regulation 9(2) of the SEBI (IFSC) Guidelines, 2015.

Information on the designated Officer is as below:

Name of the Designated Officer
PAN details
Educational Qualification
Telephone and mobile number
Office Address
Email Address
Father’s name / Relative
Residential address
Previous Employment/ Name of the Organization

I/We hereby undertake that we will keep the exchange informed of any future change in the designated officer.

Yours faithfully

For ______(name of the applicant) Counter signed by

Signature of Designated Directors Signature of the Designated Officer

Annexure-5

(On letterhead of the trading member)

(To be submitted to Clearing Bank and acknowledgement copy to be submitted to INDIAINX)

Date: ______

To,

Name & Address of the Clearing Bank

Dear Sir,

Sub: Authority letter for debiting the Settlement account in respect of INDIAINX charges

With reference to the settlement account no.______that has been opened in your bank in our name, we hereby authorise you to debit our settlement Account with the charges or other dues, which INDIA INX shall submit to you from time to time.

In the event of any wrong debit made by bank on the basis of the bills submitted by INDIAINX, we shall bring the same to the notice of INDIA INX for appropriate action.