Circular no.

: MCX/MEM/026/2007 January 17, 2007

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Revised Fees Structure for Membership

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In terms of provisions of the Rules, Bye-Laws and Business Rules of the Exchange

Business Rule 5 is modified and shall read as under:

Business Rule 5. Membership

1. A person who is desirous of becoming a registered member of Exchange’ may apply

for any of the following categories:-

1.1 Trading-cum-Clearing Member (TCM) – A TCM is entitled to trade on his own

account as well as on account of his clients, and clear and settle these trades
himself. A sole proprietor, a partnership firm, a joint hindu undivided family, a
company, a cooperative society, a public sector organization, statutory organization
or any other Government or non-Government entity can apply for TCM.
1.2 Professional Clearing Member (PCM) – A PCM is an Institutional Clearing
Member, who is entitled to clear and settle trades executed by other members of
the Exchange. A company and an institution only can apply for PCM.
1.3 Institutional Trading-cum-Clearing Member (ITCM) – An ITCM is entitled to
trade on his own account as well as on account of his clients, clear and settle trades
executed by himself as well as of other members of the Exchange. A company and
an institution only can apply for ITCM.

2. The applicant is required to submit an application in the prescribed format along with
the required documents, admission fee, security deposit and processing fees (in full) as
specified by the Exchange from time to time.

3. Fees and deposit structure of different categories of members are as under:

(Rs. in lacs)

Particulars Trading -cum- Trading -cum- Professional Institutional

Clearing Clearing Clearing Trading –cum-
Member (Non- Member Member Clearing
deposit based) (Deposit (PCM) Member
based)
Minimum Net Worth 75.00 75.00 500.00 100.00

Admission fees 20.00 10.00 10.00 25.00

Security Deposit 30.00 65.00 100.00 100.00

Processing fees 00.10 00.10 00.10 00.10

4. The security deposit is interest free and a minimum 50% of it can be given in the form of
cash and the balance 50% can be in the form of bank guarantee or fixed deposit or both,
with the approved banks.

In addition to the fee and deposit mentioned in para 3 above, every applicant shall also pay
insurance premium along with the application form, as decided by the Exchange from time
to time.

5. The applicant is required to appear for an interview before the Membership

Committee of the Exchange. The Committee has a right to accept or reject the
applications received for the membership without assigning any reason whatsoever and
is empowered to frame rules or criteria relating to admission of membership based on
the guidelines issued by the Board of Directors of the Exchange and as per the Bye-
Laws and Rules of the Exchange. On selection as a member of the Exchange, he will be
required to submit the specified documents related to membership, network connectivity
etc. with the Exchange.

In case the application is rejected for any reason whatsoever, the fee paid above shall
refunded by the exchange to the applicant except the processing fee.

6. Every member is required to -

1) maintain the net worth as prescribed by the Exchange during the entire period of
his membership of the Exchange
2) make payment of annual subscription fee as per Business Rule 7
3) take insurance policy every year prescribed by the Exchange as per Business Rule 10
4) make payment of transaction fee including Annual Advance Minimum Transaction
fee, as per Business Rule 25
5) abide by the circulars and notifications issued by the Forward Markets Commission
and the Exchange from time to time.

7. The Exchange has absolute discretion to modify and / or cancel any of the terms and
conditions related to membership specified by the Exchange. The membership once
granted by the Exchange is not transferable and can be surrendered only after expiry of
three years from the date of confirmation of membership. However, a TCM can transfer or
surrender his member ship after expiry of three years from the date of confirmation of
membership.

8. The applicant and/or the members of the Exchange are required to be registered with the
Forward Markets Commission, and shall comply with the terms, conditions, rules and
regulations of the Forward Markets Commission and the Exchange.

Business Rule 7 is modified and shall read as under:

Business Rule 7

Annual subscription

A member is required to pay annual subscription in advance latest by April 30 of every year
as under:

a) Trading -cum- Clearing Member – Rs. 75,000/-

b) Institutional Clearing Member (PCM) – Rs. 100,000/-
c) Institutional Trading –cum- Clearing Member – Rs. 100,000/-
However, the annual subscription for the existing members for the year 2007-08 will be
Rs.50, 000/- to be paid before April 30, 2007 and Rs 75,000/- for payments after April 30,
2007.

Where a member fails to pay the Annual Subscription on or before due dates prescribed,
the Exchange may at its discretion debit the settlement account of the respective
members after the close of business hours of the respective due dates. In case of
inadequacy/insufficiency of funds in the settlement accounts, interest @18% per annum
on the balance payable till the time such default continues shall be charged

Business Rule 25 is modified and shall read as under:

Business Rule 25

Transaction fee

(a) Every Member is required to pay Annual Advance Minimum Transaction charges of
Rs.100, 000/-, latest by April 30 of every year.
However, the Annual Advance Minimum Transaction charges for the existing members for
the year 2007-08 will be Rs.75, 000/- to be paid before April 30, 2007.
The above Annual Advance Minimum Transaction charges will be set off against the
transaction charges payable under this business rule by the member for that particular
year only and any unadjusted balance at the end of the year will lapse.

(b) The Exchange will levy a transaction fee on the transactions registered with the
Exchange. Such transaction fee will be computed on value basis or volume basis, as
may be decided from time to time, which will be computed on both purchases and sales
separately. This will be collected on daily basis along with the daily pay in / pay out.

(c) Transaction fee (per Rs. 1 lac of turnover value) is required to be paid by the
members based on their daily turnover in all the futures contracts in all the commodities
traded at the Exchange as tabulated below:

Average daily turnover Transaction Fee Rates (per lac)

Upto Rs. 20.00 crore Rs. 4
Above Rs, 20.00 crore to 100.00 crore Rs. 3
Above Rs, 100.00 crore to 250.00 crore Rs. 2
On incremental volume above Rs. 250.00 crore Re. 1

Average daily turnover in all the futures contracts in all the commodities will be
calculated at the end of every month by way of dividing the total turnover of the Member
of the Exchange (including Saturdays) by the total number of trading days (excluding
Saturdays).

The transaction fee shall be debited on a monthly basis to the settlement account of the
members in the first week of succeeding month after adjusting the Annual Advance
Minimum Transaction charges.
Where a member fails to pay Annual advance minimum transaction charges on or before
due dates prescribed, the Exchange may at its discretion debit the settlement account
of the respective members after the close of business hours of the respective due
dates. In case of inadequacy/insufficiency of funds in the settlement accounts, interest
@18% per annum on the balance payable till the time such default continues shall be
charged.

The above amendments will come into force from April 01, 2007.

KRCV Seshachalam
Head - Legal
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Kindly contact Mr. Anthony Rodrigues on 022 – 6709 9300 or send an email at
customersupport@mcxindia.com for any clarification.

MCX