Eligibility criteria for a Trading Member

Eligibility criteria for a Trading Member is laid down in the Securities Contracts (Regulation) Rules. The Exchange is adhering to the criteria as also the guidelines of SEBI and the Rules, Byelaws, Regulations and Circulars of the Exchange issued from time to time in this regard while admitting the Trading Members: The following are eligible to apply for trading membership subject to the regulatory norms and provisions of SEBI and as provided in the Rules, Regulations, Byelaws and Circulars of the Exchange Individuals; Corporations, Companies or Institutions or subsidiaries of such Corporations, Companies or Institutions set up for providing financial services; Such other person as may be permitted under the Securities Contracts (Regulation) Rules 1957 Individuals (Sole Proprietor) Criteria AGE STATUS EDUCATION

EXPERIENCE

Minimum age : 21 years Indian Citizen th Should have passed 10 + 2 or 12 standard or an equivalent examination. Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial services or treasury, broker, sub broker, authorised assistant or authorised clerk or authorised representative or remisier or apprentice to a trading member of a recognised stock exchange, dealer, jobber, market maker, or in any other manner in dealing in securities or clearing and settlement thereof.

Corporates A Company as defined in the Companies Act, 1956 (1 of 1956), shall be eligible to be admitted as a trading member of the Stock Exchange provided: i. such company is formed in compliance with the provisions of Section 12 of the said Act; ii.it undertakes to comply with such other financial requirements and norms as may be specified by the Securities and Exchange Board of India for the registration of such company under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); iii. the directors of such company are not disqualified for being trading members of a stock exchange under clause (1) of rule 8 [except sub-clauses (b) and (f) thereof] or clause (3) of rule 8 [except subclauses (a) and (f) thereof] of the Securities Contracts (Regulation) Rules, 1957 and the directors of the company had not held the offices of the directors in any company which had been a trading member of the stock exchange and had been declared defaulter or expelled by the stock exchange

Criteria AGE Minimum age of director(s) : 21 years STATUS Corporate registered under The Companies Act, 1956 MINIMUM PAID UP Rs.20 lakhs EQUITY CAPITAL DESIGNATED Identification of at least two directors as designated directors who would be managing the day to day trading operations DIRECTORS Each of the Designated Directors should have passed 10 + 2 or EDUCATION 12th standard or an equivalent examination. Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial DESIGNATED services or treasury, broker, sub broker, authorised assistant or DIRECTORS authorised clerk or authorised representative or remisier or EXPERIENCE apprentice to a trading member of a recognised stock exchange, dealer, jobber, market maker, or in any other manner in dealing in securities or clearing and settlement thereof. Persons who cannot become a Trading Member is also briefly indicated below: No entity shall be admitted as a Trading member/partner or director of the Trading member, if It has been adjudged bankrupt or a receiver order in bankruptcy has been made against him or he has been proved to be insolvent even though he has obtained his final discharge; it has compounded with his creditors for less than full discharge of debts; it has been convicted of an offence involving a fraud or dishonesty; it is engaged as a principal or employee in 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, unless he undertakes to severe his connections with such business on admission, if admitted; d. it has been at any time expelled or declared a defaulter by any other Stock Exchange or has been debarred from trading in securities by an Regulatory Authorities like SEBI, RBI etc. or is connected with any of the expelled Trading Members / Trading Members declared as defaulters by any Stock Exchange. e. it incurs such disqualification under the provisions of the Securities Contract (Regulations) Act, 1956 or Rules made there-under so as to disentitle such persons from seeking trading membership of a stock exchange; f. it incurs such disqualification consequent to which MSE determines it to be not in public interest to admit it as a trading member on the Exchange, provided that in case of registered firms, body corporate and companies, the condition will apply to, all partners in case of partnership firms and all directors in case of companies; g. the entity is not a fit and proper person in terms of the SEBI guidelines. No entity shall be considered as a Fit & Proper Person for the purpose of grant or renewal of registration as a Trading Member, if it incurs any of the following disqualifications: (i) the applicant or its whole time director or managing partner has been convicted by a Court for any offence involving moral turpitude, economic offence, securities laws or fraud; (ii) an order for wining up has been passed against the applicant; a. b. c.

(iii) the applicant or its whole time director, or managing partner has been declared insolvent and has not been discharged;

(iv) an order, other than an order of suspension of certificate of registration as an intermediary, restraining, prohibiting or debarring the applicant or the intermediary, or its whole time director or managing partner from dealing in securities in the capital market or from accessing the capital market has been passed by the SEBI or any other regulatory authority and a period of three years from the date of the expiry of the period specified in the order has not elapsed; (v) an order cancelling the certificate of registration of the applicant has been passed by the SEBI on the ground of its indulging in insider trading, fraudulent and unfair trade practices or market manipulation and a period of three years from the date of the order has not elapsed; (vi) an order withdrawing or refusing to grant any license / approval to the applicant or its whole time director or managing partner which has a bearing on the capital market, has been passed by the SEBI or any other regulatory authority and a period of three years from the date of the order has not elapsed: (vii) the applicant is financially not sound; (viii) any other reason, which renders such applicant or its whole time director or managing partner unfit to operate in the capital market. Explanation: For the purpose of Clause h.(vii) above, the net worth of the applicant shall be taken into consideration. Disclaimer - The Exchange reserves the right to accept or reject any application or amend the terms & conditions without assigning any reason whatsoever. The number of trading members to be admitted shall be at the sole discretion of the Exchange. TOP .

Continuing Compliance requirements Trading Members are required to comply with the following as continuing compliance requirements: Submission of:

Audited Annual Accounts Networth Certificate Shareholding pattern

The above documents have to be submitted before the expiry of six months from the end of the respective financial year of the Trading Member. Non-submission of the above documents by the due date would attract penalty. Further, the following conditions are also required to be adhered by a Trading Member: (a) Trading members shall adhere to the Bye Laws, Rules and Regulations of the Exchange and shall comply with such operational parameters, rulings, notices, guidelines and instructions of the relevant authority as may be applicable. (b) All contracts issued for deals on the Exchange shall be in accordance with the Bye Laws, Rules and Regulations of the Exchange. (c) Trading members shall comply with such requirements as may be prescribed by the relevant authority from time to time with regard to advertisements and issue of circulars in connection with their activities as trading members. (d) Trading members shall furnish declarations relating to such matters and in such forms as may be prescribed by the relevant authority from time to time. (e) Trading members shall furnish to the Exchange an annual Auditors' Certificate certifying that specified requirements as may be prescribed from time to time by the relevant authority pertaining to their operations have been complied with. (f) Trading members shall furnish such information and periodic returns pertaining to their operations as may be required by the relevant authority from time to time. (g) Trading members shall furnish to the extent such audited and/or unaudited financial or quantitative information and statements as may be required by the relevant authority from time to time. (h) Trading members shall extend full co-operation and furnish such information and explanation as may be required for the purpose of any inspection or audit authorised by the relevant authority or other authorised official of the Exchange into or in regard to any trades, dealings, their settlement, accounting and/or other related matters. (i) A trading member shall not deal with sub-brokers who are not registered with SEBI nor allow operation of its trading terminal at any office other than its registered office, branch offices and the offices of its registered sub-brokers. TOP

Fees & Deposits for admission of Trading Members 1. The following are the fees and deposits payable to the Exchange by a Trading Member at the time of admission: 1.1 Admission fees - Rs. 1 Lakh 1.2 Security Deposit-for cash segment - Rs 4 lakhs

1.3 Security Deposit- for F&O segment - Rs.10 lakhs 2. Annual Subscription: The Trading Members shall pay Annual Subscription at the rate of Rs.4,500/- or such other amount as may be decided by the relevant authority, before 30th April of every year. 3. Net Worth: A minimum net worth of Rs.15 lakhs is required for cash segment and F&O segments Rs.30 lakhs for F&O segment for considering a person / entity to be eligible to be admitted as a Trading Member. Service tax as applicable on admission and annual subscription fee to be paid.