Sub: Change in Clearing Member Affiliation in the F&O Segment
MEMBERSHIP DEPARTMENT
Circular No.297
Ref. NSE/MEM/3661 October 07, 2002
Dear Members,
Sub: Change in Clearing Member affiliation in the F&O Segment
Trading Members on the F&O segment intending to change their association/affiliation from one Clearing Member to another in the F&O segment are required to submit the following documents :
- Letter from the Trading Member, requesting the change in affiliation as per Annexure I
- Letter from the disaffiliating / outgoing Clearing Member as per Annexure II
- Letter from the affiliating / incoming Clearing Member as per Annexure III
- Draft Clearing Member – Trading Member Agreement as per Annexure VIII of Circular No. 234, Ref. No. NSE/MEM/3090 dated December 31, 2001.
Clearing Members undertaking such functions for every trading member are required to remit Interest Free Cash Security Deposit of Rs.2 lakhs and Collateral Security Deposit of Rs.8 lakhsto NSCCL on behalf of each such trading member.
Trading Members / Clearing Members are requested to take note of the above and ensure its due compliance accordingly.
For National Stock Exchange of India Ltd.
Joseph Bosco
Asst. Vice President
ANNEXURE I
(On the letterhead of the Trading Member)
To,Date:
Membership Department
The Natioinal Stock Exchange of India Ltd.
Exchange Plaza
Bandra Kurla Complex
Bandra (E)
Mumbai 400051
Dear Sir,
Sub:Change in Clearing Member affiliation in the F&O Segment.
I/We am/are a trading member of the F&O segment with SEBI registration No. INF23______and having an arrangement of clearing and settlement with M/s. ______, a clearing member of NSCCL.
I/We wish to disassociate / disaffiliate myself / ourselvesfrom the said clearing member M/s. ______, w.e.f. ______(i.e. at close of market hours). Further, I/We wish to associate / affiliate myself / ourselves with M/s. ______,another clearing member of NSCCL, who shall clearand settle trades doneon F&O segment on my/our behalf w.e.f. ______(at start of market hours).M/s. ______(incoming clearing member) have vide their letter dated ______undertaken that they would take over all my/our open positions from M/s. ______(outgoing clearing member), for the purpose of settlement.
An agreement dated______has been entered between M/s. ______(incoming clearing member) and me/us in this regard.
In view of the above, you are requested to transfer all my/our open positions on the F&O segment from _____ (outgoing clearing member) to ______(incoming clearing member) after the close of market hours of ______.
Yours faithfully,
Signature of Director/Partner/Individual
ANNEXURE II
(On the letterhead of the OutgoingClearing Member)
To,Date:
Membership Department
National Securities Clearing Corporation Ltd.
Exchange Plaza
Bandra Kurla Complex
Bandra (E)
Mumbai 400051.
Dear Sir,
Sub :Change in Clearing Member affiliation in the F&O Segment.
I/Weam/are a clearing member of the F&O segment with SEBI registration No. INF23______and have been undertaking the clearing & settlement functions on behalf of M/s. ______, a trading member on F&O segment. It is agreed between M/s. ______(trading member)and us that they would not be engaging our services as their clearing members w.e.f. ______(at close of markethours) and thereafter we would not be engaging ourselves in such activity on behalf of M/s. ______(trading member).
In view of the above, I/We would clear and settle the transactions of the above said trading member till ______(at close of market hours).Our obligation in respect of M/s.____ for the trades done in the F&O segment till _____ would be met by us till the said trading member’s open positions expire or get taken over by another clearing member, whichever is earlier.
Yours faithfully,
Authorised Signatory
(Name & Designation)
ANNEXURE III
(On the letterhead of the IncomingClearing Member)
To,Date:
Membership Department
National Securities Clearing Corporation Ltd.
Exchange Plaza
Bandra Kurla Complex
Bandra (E)
Mumbai - 400051.
Dear Sir,
Sub:Consent to act as Clearing Member for M/s. _____ on the F&O Segment.
I/We hereby agree and undertake to act as Clearing Member in the F&O Segment to clear and settle the trades on behalf of M/s. ______(name of the trading member) on F&O segment.
You are requested to transfer the open positions, if any, of M/s. ______(name of the trading member) on the F&O segment w.e.f. ______(at start of market hours). I/We undertake to clear and settle the open positions as well as any margin obligations of the above said trading member w.e.f.______.
A copy of the agreement dated______, between M/s. ______(trading member) and us is enclosed.
Yours faithfully,
Authorised Signatory
(Name & Designation)