Set of documents required for Enablement
I. Enablement on Capital Market
Members are requested to furnish the documents for enablement:-
1. Board Resolution/Letter of authorisation - mentioning the authorised signatories, along with the specimen signature of the signatories.
2. Audited Net worth certificate in format. If CA certification is more than six month old.
3. Annexure C-3, C-6 and C-7 only if there are any changes.
4. Latest Audited Annual accounts. If any changes.
5. VSAT connectivity has to be established before the enablement can be done.
6. Confirmation / Proof of taking up an insurance with either Oriental Insurance Company Ltd. (OICL) or New India Assurance Company Ltd. (NIACL) under the Broker Indemnity Policy.
7. Submit a proof of application for registration with Central Excise. (Submit an acknowledgement copy from the Central Excise to us.)
8. Open Settlement account and Exchange Dues account (Mumbai Branch) with the designated Bank and submit the account number and a documentary reference thereof. Open two more bank accounts for (a) Client Money and (b) other business purposes and submit the account numbers and documentary reference thereof.
The trading member has to give the proof of opening of accounts on the letterhead of the bank specifically stating the date of the opening of the account with the bank.
9. Further a five point confirmation letter as per the format enclosed as below is required. Please note that the letter should be on the letter head of the trading member duly acknowledged by the Bank. Format enclosed.
10. Copy of the Memorandum of Association.
11. Open Depository accounts (Pool and beneficiary accounts) with any of the Depository Participants of NSDL and CDSL and submit the account number and documentary there of.
12. Copy of the CDSL letter duly acknowledged by the CDSL Authority. Format as enclosed.
13. Letter availing the facility of Automatic Delivery Out in NSDL. Please note that member has to exercise the option of the settlement type for which it needs the dematerialization facility. Format as enclosed.
14. Letter requesting activation of account in Collateral Interface for Member (CIM). Format as enclosed.
15. Letter requesting activation of account in NSCCLs Clearing Interface System (NCIS). Format as enclosed.
16. Trading member has to give undertaking on their letterhead that they do/do not want to be enabled on the Mutual Funds. (Strike off which is not required). The undertaking should be signed & duly stamped.
17. Trading Member needs to submit collateral deposits in the form of a Bank Guarantee / FDR/ Deposit (cheque/DD) of Rs.25/17.50 lakhs as pe the demand advice. Proof of the same is required.
18. Member should ensure that payment as per demand advice has been made to NSEIL/NSCCL. Proof of the same is required
19. Undertaking that member/director(s) does not appear in the list of companies/directors debarred by SEBI and if any disciplinary action such as suspension or cancellation taken by the Board.
II. Enablement on F & O segment
1. Board Resolution/ Letter of authorization mentioning the authorised signatories, along with the specimen signature of the signatories.
2. Trading member is required to make the payment as per the demand advice and submit a proof of the same
3. Audited Net worth certificate in format C-1.
4. In case the trading member wants to be enabled as clearing/ self clearing member they need to open the settlement account, and proof of the same on the letterhead of the banker with the date of opening of the accounts needs to be submitted.
5. Further a five point confirmation letter as per the format enclosed is required. Please note that the said letter should be on the letter head of the clearing/self clearing member duly acknowledged by the Bank. As per the format enclosed (Kindly note that the above document is required only in case where trading member wants to be enabled as Clearing Member or Self Clearing member)
III. Enablement on WDM
Members are requested to furnish the documents for enablement:-
1. Board Resolution/ Letter of authorization mentioning the authorised signatories, along with the specimen signature of the signatories
2. Trading member is required to make the payment as per the demand advice and submit a proof of the same
3. Audited Net worth certificate in format C-1.
IV. Enablement on Currency segment
Members are requested to furnish the documents for enablement:-
- Board Resolution/Letter of authorisation - mentioning the authorised signatories, along with the specimen signature of the signatories.
- Audited Net worth certificate in format. If CA certification is more than six month old. As per LC Gupta Method
- VSAT connectivity has to be established before the enablement can be done.
- Confirmation / Proof of taking up an insurance with either Oriental Insurance Company Ltd. (OICL) or New India Assurance Company Ltd. (NIACL) under the Broker Indemnity Policy. (If taken membership only in Currency Derivatives)
- Submit a proof of application for registration with Central Excise. (Submit an acknowledgement copy from the Central Excise to us.) (If taken membership only in Currency Derivatives)
6. Open Settlement account and Exchange Dues account with the designated Bank and submit the account number and a documentary reference thereof. Open two more bank accounts for (a) Client Money and (b) other business purposes and submit the account numbers and documentary reference thereof. Needs to open the settlement account separately for Currency derivatives if getting enabled as a clearing member. The trading member has to give the proof of opening of accounts on the letterhead of the bank specifically stating the date of the opening of the account with the bank.
- Further a five point confirmation letter as per the format enclosed as below is required. Please note that the letter should be on the letter head of the trading member duly acknowledged by the Bank. Format enclosed.
- Copy of the Memorandum of Association.
9. Trading Member needs to submit collateral deposits as per the demand advice. Proof of the same is required.
10. Member should ensure that payment as per demand advice has been made to NSEIL/NSCCL. Proof of the same is required
Format of Five Point Confirmation Letter for Settlement account in Capital Market (F&O/CDS if member has applied for Clearing /Self Clearing Membership)
Date:
From
(Clearing Member name and address)
To:
(Clearing Bank name and address)
Dear Sirs,
Sub: Operation of Clearing Bank for National Securities Corporation Limited (NSCCL)
Ref: Our Clearing Bank Account No: ______with (Clearing Bank name and address)
With reference to the above, we note that:
1 National Stock Exchange of India Ltd. has formed National Securities Clearing Corporation Limited. (NSCCL), as a wholly owned subsidiary to undertake clearing and settlement activity for its Members. NSCCL has established a clearing and settlement system, whereby its members will be able to undertake the clearing and settlement of deals admitted.
2 The bank has been nominated/ appointed as a Clearing Bank for the purpose of Clearing and Settlement by NSCCL.
3 As per the Byelaws, Rules and Regulations of NSCCL, the member shall authorise the Clearing Bank to access their clearing account for debiting & crediting their accounts as per the instructions received from NSCCL from time to time.
4 Having due regard to the above, we hereby irrevocably authorise the Clearing bank to debit and credit our above mentioned account number from time to time. Further, we authorise the Clearing Bank to report balances and other information relating to this account to NSCCL as may be required by NSCCL from time to time. This irrevocable undertaking will be effective from the date of commencement of operation by NSCCL.
5 We further hereby undertake to abide by such other or further guidelines/ instructions as may be communicated / decided by NSCCL.
Yours Faithfully,
Format for CDSL Letter to acknowledged by CDSL
(On Company Letterhead):
To:
Central Depository Services Ltd (CDSL)
P.J. Towers, Dalal Street,
Fort, Mumbai – 400023
Dear Sir,
Sub: Operation Of Depository for National securities Clearing Corporation Limited
Ref: Our Depository account No: …………………& Client ID: …………. With CDSL address……………., address …………………….
With reference to the above, we note that:
1. NSCCL has established a clearing and settlement system, whereby its members will be able to undertake the clearing and settlement of deals admitted.
2. Central Depository Services (I) Ltd (CDSL) has been appointed by NSCCL as a settling Depository for the purpose of settlement of securities in dematerialized form.
3. Now I/We do hereby irrevocably authorize CDSL to block/earmark the balances in my /our Depository account and to debit/credit my/our above account as the case may be as per the instructions received from NSCCL. Additionally I/We authorize CDSL to report balances and give any other information as and when required to NSCCL relating to my/our above mentioned account. This irrevocable undertaking will be effective from the date of commencement of operation by NSCCL.
4. I/We further hereby undertake to abide by such other or further guidelines/instructions as may be communicated /devised by the NSCCL.
Yours Faithfully,
For…………………Ltd.
(Director)
CC to NSCCL
Cc to DP
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Annexure – B
Account Opening Confirmation
T. M. code:
T.M. Name:
Account No.:
(By CDSL)
DP ID:
Signature:
Stamp:
Date:
Format for facility of Automatic Delivery out in NSDL.
To be given in the members letterhead / signed by the Member/any one Partner of Partnership firm or Director of a Corporate Member and stamped)
Date:
From: [Clearing Member Name and address]
To: [NSCCL Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051]
Dear Sirs,
Sub: Availing the facility of Automatic Delivery Out in NSDL
With reference to the above, we note that:
1. NSCCL is commencing a new facility for automating the delivery out instructions.
2. We wish to avail of this facility for the following settlement types. (Please mark 'Y' against the settlement type for which this facility is desired and 'N' against the settlement for which this facility is not required)
Settlement Type 'N', Market Type 13 Y/N
Settlement Type 'A', Market Type 14 Y/N
Settlement Type ‘W’, Market Type 22 Y/N
3. We do hereby irrevocably authorize NSCCL to provide NSDL with the details of the delivery obligations, including the security details and the quantities to deliver for all the above settlement types and any other details which may have to be given to NSDL with respect to the above subject. This irrevocable undertaking will be effective from the date of this letter.
4. We understand that in the case of pari-passu shares and multiple ISINs, Auto DO instructions will be generated for only the primary ISIN. We also understand that in case an IDO is given, the Auto DO instructions for the same will be monitored by us and any changes desired to be made in the Auto DO instructions will be done by us accordingly.
5. In case of shifting of our CM pool account in NSDL, we undertake to monitor the delivery instructions including the Auto DO instructions generated by NSCCL. We understand that NSCCL will be generating Auto DO instructions for a single depository account only, even if two CM pool accounts are operating at the same time.
6. NSCCL will not be responsible for any short or excess shares being transferred from our depository account with NSDL on account of Auto DO.
7. In case we fail to comply with the specified requirements of NSDL, resulting into short deliveries and consequential close out, NSCCL will in no way be responsible.
8. We further hereby undertake to abide by such other or further guidelines / instructions as may be communicated / devised by NSCCL from time to time.
Yours faithfully
Signature of
(Member/Partner of Partnership firm/Director of a Corporate Member)
Format of Letter requesting activation of account in Collateral Interface for Member (CIM) Application
Date:
The Manager
NSCCL - Collaterals Department
NSE Exchange Plaza
Mumbai - 400051
Dear Sir/ Madam,
Sub: Activation of account in Collateral Interface for Member (CIM) Application
We are interested in availing the facilities provided through the Collateral Interface for Member (CIM) Application. We therefore request you to activate our account and provide us necessary access in the said interface.
Please find below the necessary details as required:
S No / Particulars / To be filled by the Member1. / Trading Member Code
2. / Member Name
3. / Segment for which application is being made (Cash/F&O/CDS/All segments)
4. / Contact Person (The account details will be sent to this person)
5. / Address for Communication with Pin Code
6. / Phone Number with STD Code
7. / Mobile number of contact person
8. / Fax Number with STD Code
9. / No of User Ids required
We hereby authorize NSCCL to act upon the instructions sent through the interface and we shall be solely responsible for any errors pertaining to data entry from our end.
We would request you to advise us the account details allotted to us for this purpose at the above mentioned address.
Yours sincerely,
Authorized Signatory
Name:
Designation
Format of Letter requesting activation of administrator user in NSCCLs Clearing Interface System (NCIS)
Date:
The Manager
NSCCL - Securities Department
NSE Exchange Plaza
Mumbai - 400051
Dear Sir/ Madam,
Sub: Activation of account in NSCCLs Clearing Interface System (NCIS)
We are interested in availing the facilities provided through the NSCCL’s Clearing Interface System (NCIS). We therefore request you to activate our account and provide us necessary access in the said interface.
Please find below the necessary details as required:
S No / Particulars / To be filled by the Member1. / Trading Member Code
2. / Member Name
3. / Contact Person (The account details will be sent to this person)
4. / Address for Communication with Pin Code
5. / Phone Number with STD Code
6. / Mobile number of contact person
7. / Fax Number with STD Code
We hereby authorize NSCCL to act upon the instructions sent through the interface and we shall be solely responsible for any errors pertaining to data entry from our end.
We would request you to advise us the account details allotted to us for this purpose at the above mentioned address.
Yours sincerely,
Authorized Signatory
Name:
Designation:
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