National Commodity & Derivatives Exchange Limited s1

NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED

Circular to all trading and clearing members of the Exchange

Circular No. : NCDEX/MEMBERSHIP-002/2016/160

Date : July 04, 2016

Subject : Submission of Annual Return 2015-16

In terms of Regulation 7.2.3 of Regulations of the Exchange, members are hereby advised to submit the Annual Return for the financial year ended 2015-2016.

All members who have been activated for trading prior to April 1, 2016 are required to submit their Annual Return latest by October 31, 2016, in respect of financial year ended March 31, 2016.

The members having their financial year ending other than March 31, 2016 are required to submit the said Annual Return within a period of 6 months from the close of their respective financial year. Such members are required to inform the Exchange of the different financial year followed by them within 15 days of this circular. If the members have changed their financial year from the one followed earlier, they shall also convey such details to the Exchange within 15 days of this circular.

Members, who have already submitted any of the documents which are prescribed in this circular for any other purpose, are required to re-submit copy of the said documents pursuant to and in compliance with this circular.

Members are aware that any change in Share Holding Pattern (SHP)/Dominant Promoter Group (DPG) requires prior approval of the Exchange. In case, the changes in SHP/DPG have been carried out by the member without the prior approval of the Exchange, such changes will be treated as violation and will attract penalties as per our Circular No. NCDEX/COMPLIANCE-001/2010/089 of April 1, 2010. The applicable penalties will be recovered as soon as such violations are noticed from the Annual Return submitted by the members. Exchange may also take any other action apart from levying penalties prescribed in our above circular, including placing the trading terminals on square off mode.

Inactive Members:

Inactive members (defined for the purpose of current Annual Return submission) are those members who have not undertaken/will not undertake any trade on the Exchange from April 1, 2015 to October 31, 2016, may submit the Annual Return comprising of:

1. Declaration cum confirmation for Inactive Members (as per Annexure E)

2. Net worth certificate as per the format given in Annexure C-1 along with computation sheet (Annexure C-1A), duly certified by Statutory Auditors/Chartered Accountants. (Members are required to follow the same method for calculation of net worth as was being followed previously)

3. Annexure C-2- Details of other Exchange Membership

4. Annexure F - Contact details of Member.

5. Annexure G - Undertaking of Foreign share Holding

6. Financial Statements (which includes Balance Sheet, Profit & Loss Account, ncome &

Expenditure Account, Directors’ and Auditor’s Reports) duly certified by CA.

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Registered Office: 1st Floor, Akruti Corporate Park, Near G.E. Garden, LBS Road, Kanjurmarg West, Mumbai 400 078, India. CIN No. U51909MH2003PLC140116 Phone: +91-22-6640 6789, Fax +91-22-6640 6899, Website: www.ncdex.com

Online submission of Annual Return through NCFE:

Members are hereby informed that they are required to upload their Annual Return (with all enclosures) through NCFE system in PDF format.

We are providing help manual for the general awareness of the members for online submission of Annual Return through following path to NCFE:

· Access through Internet : ftp://extranet.ncdex.com/

· Access through VSAT : ftp://172.31.4.27/

The user manual is stored in Common/ NCDEX Documents folder.

Members are requested to strictly adhere to the formats as prescribed in this circular. Non-adherence to the same shall be treated as non-submission/ non- compliance with the requirements of this circular.

For the sake of ease and ready reference, a checklist is enclosed for the members to fill up and submit along with the said Annual Return (Annexure– Checklist).

Action for Non-Compliance

Non-compliance/ non-submission of the above will result in appropriate action including levy of late/ partial/ non-submission charges at the rate of Rs. 200/- per day with effect from November 01, 2016 till the date of actual submission.

Members are requested to ensure that all the applicable documents as above are submitted together before the due date. Piecemeal submission will not be accepted.

Incorrect/Incomplete/partial/piecemeal submission of Annual return would be construed as non-submission and will attract non- submission /late submission charges as explained above.

During the scrutiny of the Annual Return or later, if it is found that any document has been submitted incorrectly or incomplete, the Exchange at its sole discretion may levy late submission charges (as prescribed in this circular) as if the Annual Return was not submitted, till such time such correct document(s) are submitted again.

Exchange may take any other action, apart from recovery of charges for late /partial/ incorrect/non-submission of Annual Returns.

Members are advised that trading terminals of those members who fail to submit their Annual Returns by March 31, 2017, will be placed on Square off mode effective April 01, 2017.

For and on behalf of

National Commodity & Derivatives Exchange Limited

Jayant Nalawade

Chief Regulatory Officer

For further information / clarifications, please contact

1. Customer Service Group on toll free number: 1800 26 62339

2. Customer Service Group by E-mail to:

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To,

Membership Department

National Commodity & Derivatives Exchange Limited

Akruti Corporate Park

L.B.S. Marg, Near G.E. Garden,

Kanjur Marg (W)

Mumbai – 400 078

Sub: Submission of Annual Return for financial year 2015-16

Dear Sir,

With reference to the above subject, please find enclosed the following documents as per checklist.

Checklist for submission of Annual Return

Name of the Member
TM/TCM /STCM/ PCM/TM with CTCL
T M I D/UMC code allotted by FMC
Permanent Account Number (PAN) of
member entity
Website URL of the member (If Any)
Occupation of the member / Farmer/Agriculturist
Commodity Broker
(Kindly tick wherever applicable) / Trader
Physical trader in Mandis
Processor/ Manufacturer
Any other – please specify
Annual submission for the year / 2015-16

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Sr. / Annexure / Description / Enclosed
No. / (Yes/No)
Annual / Financial Statements (which includes Balance Sheet, Profit
1 / and Loss Account/ Income and Expenditure
Accounts
Account, Directors’ and Auditor’s Reports) duly certified by CA
2 / C-1 and / Net worth Certificate along with computation sheet, duly
C-1A / certified by statutory auditors/CA.
3 / C-2 / Details of other Exchange(s) membership
4 / C-3 / Details of Directors/Partners duly certified by CA/CS
5 / C-3A / Member undertaking for Proprietor/Directors/Partners
Undertaking from Directors/Partners/ Proprietor
6 / C-4 / Details of Shareholding/Sharing Pattern duly certified by
CA/CS
7 / C-5 / Details of Dominant Promoter Group duly certified by CA/CS
8 / C-6 / Undertaking from Relatives/Corporate entities supporting the
Dominant Promoter Group duly certified by CA/CS
9 / D / Declaration of Members’ Fidelity Insurance
Declaration cum confirmation for Inactive
10 / E / Members ( Applicable for Inactive Members as defined in this
circular)
11 / F / Present contact details of the Member Company
12 / G / Undertaking for Foreign Holding
13 / H / Details of sales personnel or approved user who has
passed any certification programme
14 / I / Associate Companies/Partnership/ Proprietorship Firm having
direct/indirect interest in capital/ commodity market

For any further communication in this regard, please contact the undersigned or

Mr./Ms.______(Name of the contact person) on______(Contact Numbers) or email______

Yours faithfully,

Signature and stamp of the member entity

Authorised Signatory

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Annexure C-1

Trading Cum Clearing Members and

Strategic Trading cum Clearing Members, Professional Clearing Members)

Certificate dated / submitted by ( T M I D ) / to NCDEX
CERTIFICATE
This is to certify that the Net worth of M/s./Mr./Ms. / as on ______as per

the statement of computation of even date annexed to this report is Rs. ____ Only (Rupees (in words) ______) calculated as per L C Gupta method of Annexure C – 1A.

We further certify that:

· the computation of net worth based on my / our scrutiny of the books of accounts, records and documents is true and correct to the best of my / our knowledge and as per information provided to my / our satisfaction.

· the computation of networth is in accordance with method of computation prescribed by Dr. L C Gupta Committee Report.

· The computation of net worth is in accordance with NCDEX requirement.

· We hereby confirm that we are not the related party to the aforesaid entity.

Place:

For (Name of Chartered Accountant Firm)

Name of the Partner/Proprietor

Date: Chartered Accountant

CA Stamp and Membership Number

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(To be provided on the Letterhead of the certifying Chartered Accountant)

Annexure C – 1A

Computation of Net worth of Members as part of Membership Requirements

The Members are required to provide the net worth certificate as per the format provided in Annexure C – 1)

Computation of Networth as on………………… prescribed by Dr. L.C. Gupta Committee is as follows:

A. / Capital
B. / Free Reserves
C. / Less Non-allowable assets viz.,
(a) / Fixed Assets
(b) / Pledged Securities
(c) / Member’s card
(d) Non-allowable securities (unlisted securities)
(e) Bad deliveries
(f) Doubtful Debts and Advances*
(g) Prepaid expenses, losses
(h) Intangible Assets
(i) 30% of Marketable securities
D. / Total Net Worth(A+B-C)

*Explanation:

Includes debts/advances overdue for more than three months or given to associates

For (Name of Accounting Firm)

Name of Partner/Proprietor

Chartered Accountant

CA Stamp & Membership Number

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Annexure: C-2

Certificate dated ______submitted by______to NCDEX

Details of other exchanges Memberships as on 31.03.2016

Sr. / Name / Name of / Membership / Membership / Type of
No. / Exchange / Since / No. / Membership

Date :

Place :

Authorised Signatory/ies

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Annexure: C-3

Certificate dated______submitted by______to NCDEX

Details of Directors/Partners/Proprietor/Society Members as on 31.03.2016

Sr. / Name / Fathers / Nationality / Experience / PAN / Education / Date / Residential / Contact / Directorship
No. / Name / @ / (No. of Yrs) / No. / Qualification / of / address / no. and / /controlling
Birth / email id / shareholding
in other cos.#

Date:

Signature(s)

(Authorised Signatory/ies) Place:

NOTES :

@ e.g Resident Indian, NRI, PIO ( citizen of ….. ), Foreign National (citizen of …. )

#: For each of these memberships, give details of disciplinary action, if any, taken by the Stock / Commodity Exchange or any other regulatory authority in respect of these memberships with dates in the following format:

· Expulsion

· Suspension

· Default

· Any other disciplinary action or enquiry against the member

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CERTIFICATE

This is to certify that the details of directors/partners/proprietor……………. as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.

Place: For (Name of CA/CS firm)

Date:

Name of Partner/Proprietor of

Chartered Accountant/Company Secretary

CA/CS Stamp and Membership Number

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Annexure C-3A

Member undertaking from Directors/Partners/ Proprietor

(On Member’s Letter Head)

Date:

To,

The Membership Department

National Commodity & Derivatives Exchange Limited 1st Floor, Akruti Corporate Park

LBS Marg, Kanjur Marg, (West) Mumbai 400 078

Dear Sir,

“I/We ______(name of the designated director) and ______(name of another designated director) hereby confirm/declare/undertake that the ______(name of the Member entity) and its directors, designated directors and shareholders

a. Are not debarred/suspended/declared defaulters by SEBI/FMC/RBI/any recognized Stock Exchange/any recognized Commodity Exchange.

b. Are not connected with any of the defaulting/suspended member of any Stock Exchange/Commodity Exchange.

c. There are no complaints/disciplinary action against us at SEBI/FMC/RBI/ any recognized Stock Exchange / any recognized Commodity Exchange.