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TMI BlogSecurities And Exchange Board of India (Stock Brokers And Sub-Brokers) (Second Amendment) Regulations, 2013)X X X X Extracts X X X X X X X X Extracts X X X X ..... l be substituted with the following: "2(1) In these regulations, unless the context otherwise requires, -" (ii) in the substituted sub regulation (1), - (A) for clause (ad), the following shall be substituted, namely,- "(ad) "clearing corporation" shall mean a clearing corporation as defined in clause (d) of sub-regulation (1) of regulation 2 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012;" (B) for clause (ae), the following shall be substituted, namely,- "(ae) "clearing member" shall mean a clearing member as defined in clause (e) of sub-regulation (1) of regulation 2 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012;" (C) for clause (ca), the following shall be substituted, namely, - "(ca) "proprietary trading member" means a stock broker who trades in the debt segment of the recognized stock exchange, exclusively on its own account or as permitted by its sectoral regulator;" (D) for clause (fa), the following shall be substituted, namely,- "(fa) "self-clearing member" means a member of a clearing corporation who is also a stock broker and clears and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in particular the following, namely, whether the applicant,- (a) is eligible to be admitted as a member of a stock exchange; (b) has the necessary infrastructure like adequate office space, equipments and man power to effectively discharge his activities; (c) has any past experience in the business of trading or dealing in securities, as the case may be; (d) has been subjected to disciplinary proceedings under the rules, and bye-laws of a stock exchange, or enforcement action under securities laws, with respect to his business as a stock-broker involving either himself or any of his partners, directors or employees; (e) is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008; (f) has any financial liability which is due and payable in terms of the Act, the Securities Contracts (Regulation) Act, 1956 or rules and regulations thereunder; (g) has obtained certification in terms of SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007 or as may be specified by the Board; (h) satisfies the minimum networth and deposit requirements as sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stors within one month of the date of receipt of the complaint and inform the Board as and when required by the Board; (f) he shall at all times abide by the Code of Conduct as specified in Schedule II; and (g) he shall at all times maintain the minimum networth as specified in Schedule VI. Approval for operation in segments of stock exchange. 10. (1) Approval for operating in segments of a stock exchange shall be granted by the concerned stock exchange. (2) A stock broker registered with the Board, who desires to operate in any segment(s) of the stock exchange of which it holds a membership, shall apply to the concerned stock exchange, in the manner specified by the Board. (3) A clearing member registered with the Board, who desires to operate in any segment(s) of the stock exchange which has promoted the clearing corporation, of which he is a member, shall apply to the concerned stock exchange in the manner specified by the Board. (4) On receipt of an application under sub-regulation (2) or sub-regulation (3), the stock exchange shall, on being satisfied with the compliance of provision of the regulations and other relevant eligibility requirements specified by the Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearing corporation shall, on being satisfied with the compliance of provision of the regulations and other relevant eligibility requirements specified by the Board, grant approval for operation in any segment(s), and shall inform the Board about such grant of approval." ; V. Chapter III-A, Chapter III-B and Chapter III-C shall be omitted; VI. after regulation 28 the following new Chapter shall be inserted, namely- "CHAPTER VII MISCELLANEOUS Power to remove difficulties. 29. In order to remove any difficulties in the interpretation or application of the provisions of these regulations, the Board shall have the power to issue directions through guidance notes or circulars. Power to specify procedures, etc. and issue clarifications. 30. For the purposes of implementation of these regulations and matters incidental thereto, the Board may specify norms, procedures, processes, manners or guidelines as specified in these regulations, by way of circulars to recognized stock exchange(s) and recognised clearing corporation(s)." VIII. in Schedule I, - (i) for Form A, the following shall be substituted, namely- "FORM A [Regulation 3] Application Form for Registration as Stock Br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporation(s) or any other regulatory authority? If yes, furnish details. Also provide the details of corrective steps taken thereon. Declaration: I declare that the information given in this form is true and in the event of any information furnished is false, misleading or suppression of facts, my certificate of registration is liable to be cancelled by SEBI without assigning any reasons whatsoever. Dated..................... Signature RECOMMENDATION OF THE STOCK EXCHANGE This is to certify that …………………………. is a member of this Stock Exchange and is recommended for registration with the Securities and Exchange Board of India. Signature : Name : Designation : (ii) after Form AC, the following new Form shall be inserted, namely,- "FORM AD [Regulation 10A] Application Form for Registration as Clearing Member with Securities and Exchange Board of India Table 1: Sl. No. Particulars Details 1 Name of Member with Code No. 2 Trade name of Member 3 Name of the Clearing Corporation of which the applicant is the member 4 Date of admission to Clearing Corporation 5 Address of Member 6 Fax Numbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992, read with the rules and regulations made thereunder, the Board hereby grants a certificate of registration to................................................................................ a member of the ....................................................... stock exchange/ clearing corporation, as a stock broker/proprietary trading member/ clearing member / self-clearing member for carrying on the activities of buying, selling or dealing in securities/ clearing and settlement of trades and for carrying on such other activities as are permitted by such exchange(s)/ clearing corporation subject to the conditions prescribed therefor, from time to time, by the Board. Registration number allotted is as under: .................................................................... This certificate shall be valid till it is suspended or cancelled in accordance with the Regulations. Date : ................................ By order For and on behalf of Securities and Exchange Board of India" IX. in Schedule III, for clause IV, the following shall be substituted, namely- "IV. Non-applicabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and purchase Transactions in securities other than debt securities. Equity derivatives 0.0001 per cent of his turnover (Rs. 10 per crore) 50,000/- 50,000/- Explanation.-(A) The expression 'turnover' shall include the value of the trades executed by the stock broker on the concerned segment of the recognized stock exchange and of the trades settled on the expiration of the contracts. (B) In case of options contracts, 'turnover' shall be computed on the basis of premium traded for the option contracts and in case where the option is exercised or assigned, it shall be additionally computed on the basis of notional value of option contracts exercised or assigned. Interest rate derivatives 0.000025 per cent of his turnover (Rs. 2.5 per crore) 50,000/- 50,000/- Debt 0.00001 per cent of his turnover (Rs.1 per crore) Explanation.-For the purpose of this clause, the expression 'turnover' shall include the aggregate value of the trades executed, including both sale and purchase transactions, by the stock broker including the proprietary trading member on the debt segment of the recognized stock exchange. 50,000/- 50,000/- The fee shall not be applicable for clearing member o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be collected under this Schedule. 6. A stock broker who also acts as a clearing member/ self-clearing member shall pay the annual fee separately, as applicable to each category as specified in clause 3 above. 7. (1) Nothing contained in clause 5 shall affect the primary liability of a stock broker/ clearing member/ self-clearing member to pay the fees under clause 3 or shall preclude the Board from recovering any such fee remaining unpaid by any stock broker/ clearing member/ self-clearing member directly from him. (2) Where due to the stock broker's/ clearing member's/ self-clearing member's default any fee which was liable to be paid on his behalf under clause 5 remains unpaid or is paid belatedly, he shall, without prejudice to any other action that may be taken under the Act, rules or regulations, pay an interest of 15 per cent per annum for every month of delay or part thereof to the Board. (3) Every stock broker/ clearing member/ self-clearing member shall be liable to furnish such information or explanations to the Board as may be required by it in respect of fee paid or payable under this Schedule. 8. The financial year shall mean the year commencing from 1st April an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... associate persons of the member), prepaid expenses, losses, intangible assets and 30% value of marketable securities: Provided that the deposit requirement specified for the debt segment shall not be applicable when a clearing member clears and settles all the trades only on gross basis for both securities and funds, without using settlement or trade guarantee fund: Provided further that where the stock broker, clearing member or self-clearing member in the debt segment, is also regulated by a sectoral regulator other than the Board, the networth shall be computed in the manner as specified by such sectoral regulator." XI. Schedule IIIA, Schedule IV, Schedule IVA and Schedule IVB shall be omitted. U. K. SINHA, Chairman [ADVT-III/4/Exty./69ZB/13] Footnote: 1. Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992, the Principal Regulations, was published in the Gazette of India on October 23, 1992 vide S.O. No. 780 (E). 2. The Principal Regulations were subsequently amended on: (a) November 28, 1995 by the SEBI (Payment of Fees) (Amendment) Regulations, 1995 vide S.O. No. 939 (E). (b) January 5, 1998 by SEBI (Stock Brokers and Sub-Brokers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. LADNRO/GN/2008/20/134766. (u) June 29, 2009 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2009 vide Notification No. LADNRO/ GN/2009- 10/11/167759. (v) November 19, 2009 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2009 vide Notification No. LADNRO/GN/2009-10/21/183853. (w) April 13, 2010 by the Securities and Exchange Board of India (Stock Brokers and Sub Brokers) (Amendment) Regulations, 2010 vide Notification No. LADNRO/GN/2010-11/06/1097. (x) April 6, 2011 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2011 vide Notification No. F. No. LAD - NRO/ GN/ 2011 - 12/01/11486. (y) April 19, 2011 by the Securities and Exchange Board of India (Change in Conditions of Registration of Certain Intermediaries) (Amendment)Regulations, 2011 vide Notification No. LAD/NRO/GN/2011-12/03/12650. (z) August 17, 2011 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations, 2011 vide Notification No. LAD-NRO/GN/2011-12/19/26273 (za) April 5, 2013 by the Securities and Exchange Board ..... X X X X Extracts X X X X X X X X Extracts X X X X
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