MEMBERSHIP DEPARTMENT
Circular No. 271
NSE/MEM/3508 July22, 2002
Sub: Procedure for submission of applications/requests for new registrations/change in status
SEBI has vide letter dated June 06, 2002 (Ref.No.SMD/DBA-II/AK/10162/02) communicated to the Exchange that when anapplication is made to SEBI for grant of SEBI registration to new applicants in new segments, consolidation/reconstitution/transmission of membership etc. it should be ensured that such applicants/trading members have met their obligations related to the submission of the turnover charges computation as well as the payment of the turnover fees so computed in terms of SEBI (Stock Brokers & Sub Brokers) Rules & Regulations, 1992.
Accordingly, trading members of the Exchange are hereby advised to ensure that they have remitted the SEBI registration fees in accordance with SEBI (Stock Brokers & Sub Brokers) Rules & Regulations, 1992 before forwarding their applications to the Exchange for:
- Approval under Rule 4 (c) of SEBI (Stock Brokers & Sub Brokers) Rules 1992 for change in status and constitution/reconstitution in shareholding leading to transfer of membership of the trading member.
- Transfer of membership by way of nomination/change in dominant promoter group/Transmission of membership
- Upgradation/conversion of membership
- Surrender of membership
- Application for grant of SEBI registration in respect of additional segments.
- All cases of change in directors/shareholding/expansion or reduction of capital,etc.
The text of the SEBI letter is reproduced below:
Quote
“All Exchanges are advised to ensure that no dues are payable to Exchange/SEBI before forwarding applications for:-
(i)Approval under Rule 4 (c) of the SEBI (Stock brokers & Sub brokers) Rules 1992 for change in status & constitution, tantamounting to transfer of membership of the trading member.
(ii)Transfer by way of nomination/sale
(iii)Transmission of membership
(iv)Conversion of membership
(v)Surrender of membership
It is further advised that all Exchanges shall ensure that the members concerned have paid atleast 50% of the principal fees due in the cash segment and submitted an undertaking to pay balance fees with interest within a period of two years as per Annexure – D of circular dated March 28, 2002 before forwarding applications for registration/seeking requisite approvals under the following categories:
a)Approval under Rule 4 (c) of SEBI (Stock Brokers & Sub Brokers) Rules 1992 for change in status and constitution not tantamounting to transfer of membership.
b)Brokers seeking registration/ upgradation in the derivatives segment
c)Brokers intending to act as sub-brokers
All above applications should be accompanied by statement of turnover duly certified by the concerned Exchange in the format specified in Annex C of circular no SMD/Policy/Cir-07/2002 dated march 28,2002 after taking into consideration the break-up as per the auditors certificate furnished by the member ,if any, in conformity with Annexure A of the said circular. The said turnover details should be forwarded in hard and soft copy format as per the said circular and fee liability duly computed as per format enclosed herewith.
Applications not accompanied by the above mentioned statements duly certified by the stock Exchange shall be returned to the Exchange for resubmission with necessary statement/details.”
Unquote
Trading members may,therefore, note that henceforth, any application made to the Exchange for any change in shareholding/director or any other reconstitution of membership including capital expansion/reduction, merger, etc., they would have to submit the turnover details as specified in the said SEBI letter and also vide our Circular No.: 249 dated April 05, 2002 (Ref.No.NSE/MEM/3314) alongwith proof of payment of the turnover fees payable to SEBI, SEBI acknowledged auditors certificate and soft copy of turnover details.
Trading members may kindly take note of the above and comply with the requirements specified by SEBI accordingly. The Exchange may not process applications in respect of the above said categories unless trading members meet with the requirements and submit all the related documents.
For National Stock Exchange of India Ltd.
Joseph H Bosco
Asst. Vice President