Instructions for filling the Application form
General
Please read the accompanying notes and guidelines carefully before filling up the application form.
Applications may be typed on A4 size paper provided all the contents remain intact.
Please attach all the relevant documents.
Please use additional sheets to furnish information wherever necessary.
Every page of the form as well as every additional sheet must be initialed by the authorised signatory of the applicant.
Applications should be complete in all respects
Applicant shall submit such documents as may be called for and be required by the National Stock Exchange/NSCCL from time to time
The process of obtaining membership of the Exchange is enumerated in Annexure A.
Application form to be signed by Proprietor in case of individual, Two Partners in case of firm, Atleast two Designated Directors – in case of corporates.
The application along with relevant documents and the demand draft can be submitted at any of the regional offices of the Exchange during the working hours 9.30 a.m. to 5.45 p.m.
Point wise Guidelines with respect to form
Point no. 2 –In case you have mentioned ‘Others’ in constitution. Kindly specify the nature.
Point no. 3 – Date of execution of Partnership deed to be mentioned in case of partnership firms.
Point no. 4 in case the PAN is has been applied for; provide acknowledged copy of form/challan.
Point no. 10- Net worth
Networth should be computed as of March 31 of the completed financial year or later and presented in the prescribed format given in Annexure C-1, along with the computation sheet.
Networth computation is required to be as L C Gupta Committee method in case of self clearing/clearing membership in Derivatives segment. For other segment applicant needs to select any one of the method prescribed by Exchange.
The Net worth certificate should be submitted as on the basis of audited balance sheet.
For registered firms networth of each partner should also be submitted.
Details should be given of each item considered in the computation. Thus, details of investments, current assets, current liabilities, fixed assets including land and building, Debtors outstanding for more than 3 months etc. should be specifically stated. Even if the amount of any item involved in the computation is nil, it should be stated in the computation.
The security deposit will be included in determining the networth of the Trading Member, however, the annual subscription fee / other periodical charges would be excluded for this purpose
In case the applicant is member of any other Stock Exchange(s), it should satisfy the combined minimum networth requirements of all these Stock Exchanges including NSEIL
The company is not engaged as principal or employee in any fund based activity or any business other than that of securities, except as a broker or agent not involving any personal financial liability or for providing merchant banking, underwriting or corporate or investment advisory services, as permitted by SEBI. The company shall take prior approval from NSE before forming any subsidiary or acquiring any other company
Point no. 11 Details of membership(s) in any exchange in the name of the company, its subsidiaries or any of the directors / dominant promoter group therein, are given in Annexure : C-2. It is further certified that none of these memberships has ever been suspended / expelled / penalised / declared defaulter or any other disciplinary action initiated there against by the concerned Stock Exchanges or any other regulatory authority except as detailed in Annexure : C-2. You are requested to provide details of membership of commodity exchanges, if any. Please submit status report/ conduct certificates from the respective exchanges for the applicant /designated director / dominant promoter(s) /group company /associate company)
Point no. 13 – Banker’s letter should provide the bank account, type of account, date of opening account.
Point no. 14 – Provide the financial year from which income tax is being paid. Please attach copy of latest income tax assessment order
Point no. 17 – Ensure that atleast two partners/designated directors appear for the interview and provide the details of the same.
Point no. 18 – Payment in the form of demand draft/pay order/cheque should be for Rs.5,73,036/- drawn in favour of National Stock Exchange of India Limited, payable at Mumbai. This amount of Rs.5,73,036/- would be appropriated towards the Processing Fees of Rs. 11,236/- and an Admission Fees of Rs. 5,61,800/- and is non-refundable.
Additional documents to be attached with the form
Annexure C-1 – Certificate of networth certificate duly certified by CA along with computation.
Annexure C-2 - Details of other exchange membership
Annexure C-3 – Details of directors/partners. Identify atleast two designated partners/directors who are atleast graduate or equivalent by qualification and also have minimum two years of direct experience in the securities industry, as a broker, sub-broker, authorised assistant or remisier (Such experience will include working as a dealer, in the back office or as a researcher with any individual or organisation operating in the securities market.)
Annexure C-4 - Details of Core Dealers in Annexure : C-4 who would operate the terminal of applicant in segment applied for.
Annexure C-5 : Details of Infrastructure - The applicant should have an office space of atleast 750 sq.ft. exclusively for NSEIL operations.
Annexure C-6- Please provide two separate Annexure C-6 for equity and preference holding
Annexure C-7-Please ensure that Dominant promoter norms of the Exchange are being met (For Corporates/Firm)
Annexure C-8 is an undertaking from relative(s) of persons constituting the dominant promoter group. (For Corporates)
Annexure C-9 Provide details of the Stock Exchanges in which applicant company is listed. (For Corporates)
Bio-data of Proprietor/Partners/Directors giving detailed information on the nature of work and number of years experience in each position. (Specify number of years experience in activities related to securities industry, banking services, financial services etc. with relevant details.).
Proof of age and educational qualification should be duly stamped by the applicant
Attested copies of Certificate of Incorporation, Memorandum of Association and Articles of Association. In the MOA, Stock-broking should be one of the main objects of the company.
Board resolution from the applicant company seeking approval for membership of NSEIL/NSCCL and also giving list of authorised signatory for execution of documents.
Non-defaulter undertaking
Undertaking with respect to designated directors
Audited Balance Sheet and Profit and loss for last 3 years.
Copy of valid certificate of proprietor/any one of designated director/ any one of designated partner related to at least one of the following NCFM Modules :
a)Securities Market (Basic) Module
b)Compliance Officer (Broker) Module
c)Capital Market (Dealers) Module
d)Derivatives Market (Dealers) Module
Additional Documents required for SEBI Registration *:
Form A – For Capital Market Segment(Format attached in the link membership> Application Form).
Form H2 – Additional information for SEBI Registration (Format attached in the link membershipApplication Form).
Form AA (separate forms needs to be filled for trading membership and clearing/self clearing membership) - For Futures & Options Segment(Format attached in the link membership> Application Form).
Undertaking for Non-introduction of fake/forged shares(Format attached in the link membership> Application Form).
Certified true copies of 2 NCFM Certificates valid for the next 6 months for Futures & Options segment (Certified true copy of the Certificate).
Confirmation from Clearing Member (applicable in case of application is for only trading membership of the F&O Segment – the same is given by the Clearing member on its letterhead).
* - Kindly submit the following documents along with the application for new membership.