Procedural Requirement for Commencement of Business 26032010

8/8/2019 Procedural Requirement for Commencement of Business 26032010

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PROCEDURAL

REQUIREMENTFOR

COMMENCEMENT

OF BUSINESS


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GETTING STARTED - SUBSEQUENT TO ADMISSION LETTERFROM THE EXCHANGE

After receiving letter of Admission from the Exchange but before obtainingSEBI Registration Certificate, you will have to apply for connectivity.

Network Support Options & Charges

Below tabulated is the brief summary of the charges that are applicable towards supportand the activities related to various modes of BSE networks are provided below. For moredetails on commercial and technology aspects, refer to the respective BSE website linkednotices.

1.VSAT

A) Monthly support & shifting charges, excluding applicable taxes.

VSAT monthly support charges Rs. 4,000/-

B) Miscellaneous Changes applicable on case basis

Activity Type ChargesRs.

VSAT shifting (Intercity) 31,000/-

VSAT shifting (Intra-city) 23,000/-

VSAT IDU shifting within same premises* 6,000/-

VSAT ODU shifting within same premise* 8,000/-

* If additional cable is required Rs.9, 000/- plus taxes is applicable.

C) VSAT surrenders charges, excluding applicable taxes, from the dateof installation.

Cancellation from Date of Activation Changes(Rs.)

0-12 months 75,000/-

13-24 months 60,000/-

25-36 months 40,000/-

After 36 months (VSAT shifting charges towarehouse)

25,000/-

D) VSAT chargeable activity like damaged part replacement, site re-visit charges, excluding applicable taxes.

Activity Type Changes(Rs.)

Repair cost of RF Head 11,674/-

Repair cost of IndoorUnit

11,460/-

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Repair cost of LNA 4,500/-

Repair cost of PowerAdapter

3,000/-

Site re-visit charge 3,000/-

2. Leased Line

A) Local Leased Line

Local Leased line category Annual RecurringCharges

2Mbps direct Leased line annual support cost for circuits falling within5Kms from BSE *

40,000/-

2Mbps direct Leased line annual support cost for circuits at rest ofMumbai *

48,000/-

*Additional Rs.4, 000/- one time installation charges applicable in case of new circuit. Formore details, refer to the Notice on Upgrade of Mumbai leased lines to 2Mbps.Monthly support charges for non-migrated existing lower speed circuits of 64Kbps /128Kbps is Rs. 1100/- recovered as WAN Charges. For such cases, in addition to BSE

WAN changes, leased line cost as per carrier vendor demand note is applicable.

B) Long Distance Leased Line

Bandwidth Carrier VendorOne-time

InstallationCharges

Annual RecurringCharges

2 Mbps Private service provider 20,000/- 5,00,000/-

2 Mbps MTNL / BSNL* 10,000/- 7,50,000/-

*There will be no one-time installation charges for upgrade of existing MTNL/BSNL line.For more details, refer to the Notice on Upgrade of Outstation leased lines. .

Monthly support charges for non-migrated existing lower speed circuits of 64Kbps /128Kbps is Rs. 1500/- recovered as WAN Charges. For such cases, in addition to BSEWAN changes, leased line cost as per carrier vendor demand note is applicable.

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3. MPLS

A) Annual support charges, excluding applicable taxes

Media TypeOne-time InstallationCharges (Rs.)

Annual RecurringCharges (Rs.)

Wireless MPLS2Mbps

10,000/- 1,85,000/-

Wired MPLS 2Mbps 10,000/- 1,85,000/-

No refund of yearly charges in the first year. Proportionate refund of yearly charges if linkis surrendered in subsequent years.

B) MPLS surrender charges, excluding applicable taxes, from the date

of installation.

0-12 months 25,000/- (in Rs.)

13-24 months 20,000/- (in Rs.)

25-36 months 15,000/- (in Rs.)

After 36 months Equipment shifting cost to BSE applicable at time ofcancellation

*In case circuit is upgraded, effective date of upgrade will be treated as Date ofInstallation.

For more details, refer to theNotice

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4. Campus LAN at BSE

Monthly LAN supportcharges Rs.

11, 00/- (inRs.)

The relevant form for the same is available in the following link:http://www.bseindia.com/about/technicals.asp#tech1 . The forms can be submitted to

Mr. Bharat Vaidya, 2nd Floor, DOT Networks22728438 or +91 98195 55353.

However, please note that TWS (Trader Work Station) Connectivity is providedsubsequent to SEBI Registration while other formalities pertaining toconnectivity can be completed before SEBI Registration.

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On obtaining the certificate of Registration from SEBI:

After Receiving SEBI registration certificate but before commencement ofbusiness member has to pay

Sr.No

Particulars Amount Where To Submit

1 Deposit for DBM MembershipBalance Payment Rs. 9,00,000/-

Membership Dept.

2 Base Minimum Capital Rs.1,25,000/-(Cash) &Rs. 8,75,000/-(Cash/BF/FDR)

Membership Dept.

3 Trade Guarantee Fund Rs.10,00,000/-(Cash/BG/FDR)

Post Trade Dept.(CSD)

4 Admission Fees *Rs.5,000/- (Cash) +S.T

Membership Dept.

5 Annual Subscription Rs.25,000/- (Cash) + S.T Membership Dept.6 Initial contribution towards Trade

Guarantee FundRs. 10,000/- (Cash) +S.T

Membership Dept.

*Admission fees would be Rs 5,000/- if applicant applies for both the segments: Equityand Derivatives else in case the applicant applies only for equity membership thenadmission fees will be Rs 2,50,000/-

Deposit of Trade Guarantee Fund

The members have to provide contribution for TGF as follows:

Trade Guarantee Fund Rs. 10, 00,000/- * (BG/FDR/Cash). To besubmitted to CSD Dept. to Mr. Ajay Darji 22728468

Initial Contribution to TGF Rs. 10, 000/- + ST (Cash). To be submitted to

MSD Dept. to Mr. Rajiv Pillai 22728244* Exposure is provided on this amount and it is refundable

The DD/ Cheque for cash payment should be in the name of Bombay Stock ExchangeLimited. The member should also execute Member-Exchange agreement in the formatenclosed as Annexure 1 on Rs.100/- stamp paper and submit it to MSD Dept. to Mr. Atul

Bapna 2272 8595.With regard to Bank Guarantee, it should be in the name of Bombay Stock Exchange

Limited. The format of Bank Guarantee for TGF agreement is enclosed as (Annexure 2)to be submitted to CSD Dept. Mr. Ajay Darji 2272 8468.

In respect of FDR, it should be in the name of BSE Ltd A/c Trade name of the memberand should be for a minimum tenure of one year or more. The FDRs should be dulydischarged by affixing proper revenue stamp, and by signature of the memberor by an authorized signatory of the member. FDR should also beaccompanied with the five-point undertaking from the Bank. (Annexure 3 ) to be

submitted to CSD Dept. Mr. Ajay Darji 22728468

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Payment of Insurance:

As per SEBI guidelines, each member needs to take Broker indemnity insurancepolicy (without error & omissions OR with error & omissions) with a minimumsum insured of Rs. 5 lakhs and to submit the proof of the same (photocopy of thepremium receipt issued by the insurance company along with the covering letteraddressed to the Investment & Accounts Dept.) to the Exchange For this they maycontact any of the INSURANCE providers like The Oriental Insurance, New IndiaAssurance or any other Insurance provider providing the above mention policy.

Contact person for insurance in BSE is Mr. Mr. Satyawan Shinde at 22728221

Opening of Bank and Demat Accounts:

The member has to open following accounts for the purpose of clearing and settlementof trades.

Bank Accounts:

a. Clients Accounts for pay-in and pay-out funds

b. Own Account for the members own transactions and for other general charges.

All these accounts can be maintained in any one of the following clearing banks in FortBranch only:

1. Bank of India, Stock Exchange Branch2. HDFC Bank, Fort Branch3. Standard Chartered Bank, Fort Branch4. AXIS Bank, Fort Branch5. ICICI Bank, Fort Branch6. Indusind Bank, Fort Branch7. HSBC, Fort Branch8. Oriental Bank of Commerce, Fort Branch

9. Union Bank of India10. Punjab National Bank11. State Bank of India12. Canara Bank, Fort13. Kotak Mahindra Bank Ltd, Nariman Point Branch.14. Citibank15. IDBI16. Corporation Bank.

17. Bank of Baroda.18. Deutsche Bank

19.YES Bank

20. Dhanlaxmi Bank

A member has to designate either the Client Account or Own Account as SettlementAccount for the purposes of receiving pay-in, pay-out, margin payment etc. In practice,the members designate Client Account as Settlement Account. The Own account is usedfor own transactions and for the purposes receiving the interest/ dividend etc. Themember can also open a separate Settlement Account other than the above-mentionedaccount.

Please note a member can designate only one bank as a Clearing Bank. Further, thesame clearing bank has to be designated for the purpose of both valan and margin

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obligations. Members cannot designate one bank for the purpose of margindebits/credits and another for valan debits/credits.

Demat Accounts:

The member also needs to open the following Demat accounts with both CDSL and NSDLfor the purpose of Settlement of Securities:In case of CDSL:

1. CM Unified Settlement Account or Pool account pay-out of securities2. CM Principal Account - pay-in of securities3. CM CISA (Clearing Member Investors Security Account) securities not

removed from CM Unified Settlement Account/ Pool account within 1 workingday or 2 calendar days whichever is earlier. Interest will be charged onSecurities in this account as prescribed by SEBI are recovered from themembers.

The member can contact Mr. Yogesh Kundnani / Mr. Sandeep Pathak / Ms Kirti

Nandiwdekar at 22723333 Ext 8684/ 8651 for CDSL Account Opening. These peoplecan also be contacted if member wants to become a DP.

In case of NSDL, the member has to open only one accounts i.e. Pool Account from whichboth the pay-in and pay-out of securities is made and the classification in respect of CISA

is made.

The member can contact Mr. Prashanth Vagal/ Mr. Harbinder Saini at 24994481/24994490 for NSDL Account Opening.

The member has to open both CSDL and NSDL account since for a single transaction thepay-in and payout can be done from the same account. E.g.: If member A transaction onRIL with member B and member B has his Demat securities in NSDL, the member Acan receive only in his NSDL account.

It may be noted that to avoid holdback of settlement payouts due to wrongaccounting information given by new members. New Deposit Based Membersare required to submit proof of account opening with CDSL & NSDL and bank

settlement account along with the commencement of business letter to BSE.

Beneficiary account for depositing Securities as collateral

The member intending to deposit securities as collateral has to open a separate DPaccount with BOISL. For opening this account, the members have to write a letter to theClearing and Settlement Department mentioning that they intend to open a Beneficiaryaccount for depositing the Securities as Collateral. The members can contact Mr.Surindra Rashinkar in Clearing and Settlement Department at 22728306 or 9819555418.

The format of Pledge Deed can be obtained from the BSE website DOWNLOAD section.http://bseindia.com/about/downloads.asp]

This has to be given along with the authority letter given in Annexure 4.

DP Account and Auto Pay-in (Auto Delivery out [Auto DO]) withBOISL:

The members can also take the facility of Auto DO Facility. This is a facility madeavailable to the member-brokers for automatically generating delivery instructions ontheir behalf from their CM Pool accounts maintained with NSDL and CM Principal

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Accounts maintained with CDSL. This auto delivery facility is available for CRS (Normal &Auction) and for trade-to-trade settlements. The format for applying the same isenclosed herewith as Annexure 5(a) CDSL and Annexure 5(b) NSDL. The memberscan contact Mr. Daniel 22721233/ 34 Extn 5060/ 5085 or 2272 3838/ 2272 3017 fromthe BOISL. This is to be given along with authority letter given in Annexure 4.

Registering with BSE Webx : (Two original copies of annexure 6 are tobe submitted to DOT Dept.)

The member should also compulsorily register for Old BSE Webx for registering theclients in UCC. The relevant forms can be downloaded in the following Notice no20070111-7 dated 11th January 2007. Annexure 6.

Members who are interested in providing the internet trading facility to their clients willhave to register themselves for New BSE Webx system. This is the only Exchangeenabled platform for Internet trading facility

S.No

Item Charges

1 User Subscription ChargesA. BSE Webx EazyB. BSE Webx ClassicC. BSE Webx Premium

NILNILNIL

For technical queries of the product, members can contact special helpdesk for BSEWebx on the following numbers: 61363131

Undertaking for doing trades in own Account

The members have to provide an undertaking to the Exchange about the BOLT terminalsfrom which they would be doing own account trading. The format for the same isenclosed as Annexure 7 . This undertaking is to be submitted to Ms. Bina Khaneria:22728348. MS&D, 28th floor.

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Commencement of Business

After completing the formalities, the member has to give a letter stating that he is goingto commence business from a particular date. This letter should reach membershipdepartment three working days prior to the commencement date. The details to be

provided in the letter include the details of the DP accounts and the bank accounts alongwith the proof of payment for TGF and Insurance. The format for the letter is enclosed asAnnexure 8.

Other formalities to be completed:

Signing of the Clearing House Specimen Signature Card

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This card is a mandatory requirement for the purpose of signature verification by theClearing House.

In case of Individual member, the member and the representatives who would beauthorized have to sign the card.

In case of Corporate Member, the Designated Directors as well as the Authorized

Signatories have to sign on the card in front of an official of BSE. The member can obtainthe Blank Signature Card from the Clearing House or can contact their respectiveRelationship Managers. Duly filled in card can be submitted to Mr. Jitendra Doshi inMS&D. His contact nos. is 22728275.

Please note that the form is to be filled in Black Ball Point Pen. This card is to beaccompanied by the Board Resolution stating the authorized signatories and the aboutthe representatives as mentioned in the card. Their signatures should be there on theBoard Resolution for verification.

It is suggested that along with this members also give the Board resolution for thesignatories on the contract note. If member is so interested, he can add this in the BoardResolution containing the details on authorized signatories.

Obtaining Identity Card

The member has to obtain Identity Card as follows for his employees/ DesignatedDirector. This will enable the member to have access to BOISL and Contingency Pool.For this, the member should fill the application provided by Identity Card Departmentand fill up the form. The member can have either Gold Card for Designated Directors,Proximity Card for Clearing House entry and normal entry, Representative Card forentry purposes only. The fees payable for the same is debited to the General chargesaccount for which the member has to give a letter in the letterhead of the member.

Card Type ChargesGold Card 250/-Proximity Card 250/-RepresentativeCard

90/-

IML (Intermediate Message Layer)

The member, if required can also apply for IML wherein he can have third partydeveloped Dealer Systems. The IML system interfaces between the third partydeveloped Dealer Server Systems (DSS) and BSE's CTS. The DSS using BOLT will betrading from their own host machines using a set of messages under a protocol calledthe Open Message Bus. The open message bus will be updated and circulated amongapproved third party vendors by BSE from time to time. The application and the requireddetails for the same is available in thehttp://www.bseindia.com/about/downloads.asp under the heading DownloadHandbook and Application form for IML.

Compliance Officer and branch offices:

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Members are required to appoint compliance officer and submit the details to theExchange (in the Annexure 9) along with the Board Resolution for the same. In casemember is opening the branches simultaneously, he has to inform this to the Exchangein writing with the details of the said branches (including contact person and contactdetails). All the above details are to be submitted to Membership Services Dept.

Fastrade

FASTRADE is a terminal based and Internet based Market access solution developed byMarketplace Technologies Pvt. Ltd, a 100% subsidiary of Bombay Stock Exchange Ltd

It allows the user to get live market quotes from multiple exchanges and execute ordersin multiple markets simultaneously.

FASTRADE is an approved market access platform for BSE, NSE, MCX, NCDEX, NMCE

For trading on BSE Cash and Derivatives segment, FASTRADE software licenses will be

provided absolutely free of Cost to all BSE members. (Rate for other exchange is

attached below).Members will have to procure servers and requisite server software

licenses at their own cost.

Pre-requisites for installing FASTRADE server:

2 IML ids from BSE

Dual core processor server with 4GB RAM

MS-SQL 2005 Server Standard/Enterprise with SP 1/2

Windows Server Edition 2003

Installation Procedure for installing FASTRADE Dealer Terminals

Step 1: Member needs to install a server at his premises. A basic server for supportingless than 10 dealer terminals could have the following specs:

Dual core processor server with 3/4GB RAM

Dual core processor server with 3.2 GHZ

MS-SQL 2005 server Standard/Enterprise with SP 1/2

Windows server edition 2003

For more than 10 user terminals, please download detailed server specs from the following link:Download Server specs.

http://www.bseindia.com/downloads/fastrade/Server%20Specs.zip

Step 2: Apply for two IML Ids from BSE.Download IML id forms

http://www.bseindia.com/downloads/fastrade/IML%20forms.zip

Step 3: Fill the FASTRADE Basic Detail form (BDF) and send it to [email protected] the BDF

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Installation Procedure for installing Internet based FASTRADE exe forend clients

Step 4: In addition to the above 3 steps, the member has to enroll for an ITORS Audit

(Internet Trading Order Routing system) which is a SEBI mandate.

1. Fill in Annexure 1 and submit it to the Membership department - Mr. Chirag Sodawaterwalla.You can fax the application to 22723001Download the Annexure 1 for ITORS Audit Request

http://www.bseindia.com/downloads/fastrade/ITORS%20Notice%20-%20Annexure%201.doc

2. Fill in Annexure 2 and hand it to the system auditor at the time of ITORS AuditDownload Annexure 2

http://www.bseindia.com/downloads/fastrade/ITORS%20Notice%20-%20Annexure%202.doc

3. Please refer to the following handbook for useful information on ITORS Audit:Download the ITORS Handbook

http://www.bseindia.com/downloads/fastrade/ITORS%20handbook.zip

FASTRADE Price-card

Please note: Billing and invoicing will be done by Marketplace Technologies Ltd.

FASTRADE Price Card forDealer Terminals

No. of Terminals Charges (Rs.)

BSEOther

Exchangesegments

100 0 85 Exchange/Segment/Month/user

FASTRADE Price Card for Internet based Terminals

No. of Terminals Charges (Rs.)

BSE

OtherExchangesegments

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IBT exe upto 100 users 0 20 Exchange/Segment/Month/user

100-500 users 0 15 Exchange/Segment/Month/user

>500 users 0 10 Exchange/Segment/Month/user

IBT(browser)

Enterpriselicense

0 8000Per month enterprise license for all segments allexchanges

Incentive Scheme

Each month's total transaction charge accrued to BSE (cash and derivatives), will result in

an equivalent offset on the subsequent months FASTRADE billing; subject to a maximum

cap in the offset limited to the value of the FASTRADE billing.

The credit will expire at the end of the month.

Members Opting for F&O segment on FASTRADE will also be eligible for SPARK Back

office (BSE Derivatives), enterprise license free of charge.

Billing for non-BSE segment usage of FASTRADE will be done by Marketplace technologiesdirectly with Brokers.

Enclosure:1) TWS registration form (Annexure 10)2) BSE Connectivity Forms (Annexure 11)3) IML application form (Annexure 12)

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Annexure 1(To be executed on Rs.100/- stamp paper)

(To Be Submitted to MSD)From:-

(Hereinafter referred to as the Member Broker)

To,

Bombay Stock Exchange Ltd.Phiroze Jeejeebhoy Towers,Dalal Street,Mumbai 400 001.

(Hereinafter referred to as the Exchange)

Dear Sirs,

WHEREAS:

(i) The Member Broker is a member of the Exchange;

(ii) Pursuant to Rule 36 of the Rules, Bye-laws and Regulations of theExchange and Resolutions passed by the Governing Board at its

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meeting held on September 4, 1995, all monies, securities, fixeddeposits and other properties and things which are now or whichmay from time to time be furnished by a member of the Exchangeto the Exchange as BSE Minimum Capital are to be treated as thatmembers Base Minimum Capital Contribution to the Exchanges

Trade Guarantee Fund (hereinafter referred to as Fund);

(iii) The Member-Broker is desirous of executing this Letter-Agreementin connection with the Member Brokers Base Minimum CapitalContribution.

THE MEMBER-BROKER HEREBY AGREES AND DECLARES AS UNDER:

1. The Member-Broker has furnished and/or may hereafter from time to timefurnish to the Exchange money, fixed deposits with banks, securities andother properties and things as Base Minimum Capital (hereinafter referredto as the Member Brokers Base Minimum Capital Contribution). Cont. 2

. 2 .

2. Upon any member of the Exchange being declared a defaulter, theMember-Brokers Base Minimum Capital Contribution shall be available tothe Exchange / the Defaulter Committee and the Fund for appropriationand application in accordance with the Exchanges Rules, Bye-laws andRegulations, 1957 and the provisions of this Letter-Agreement.

3. At any time after the Member-Broker or any other member of theExchange has failed to fulfill, perform or pay any dues, obligations orliabilities to the Exchange, the Exchanges Clearing House or any memberof the Exchange (and whether or not the concerned member or the

Member-Broker has been declared a defaulter), the Exchange / theDefaulters Committee shall, without any reference to or further consent ofthe Member-Broker (this Letter-Agreement consisting such Consent), beentitled to forthwith appropriate and utilize the Member-Brokers BaseMinimum Capital Contribution mentioned in the Annexure to this Letter-Agreement towards paying and discharging the concerned members / theMember-Brokers obligations and/or augmenting and/or replenishing theFund and/or otherwise in accordance with the Exchanges Rules, Bye-lawsand Regulations, 1957 (as amended from time to time).

4.(a) At any time after an event referred to in paragraph 3 above has

occurred, the Defaulters Committee or the Exchange may givewritten notice of not less than 24 hours to the Member-Broker topay to the Exchange / the Defaulters Committee / the Fund a sumof not exceeding the amount mentioned at item No. [2] Of theAnnexure to this Letter-Agreement.

(b) If the Member-Broker does not pay, the sum mentioned at item no.[2 of the Annexure to this Letter-agreement to the Exchange / theDefaulters Committee / the Fund within the period specified in the

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notice referred at clause (a) above then, the Exchange / DefaultersCommittee shall be entitled to :

(i) Realize, liquidate or sell all or any of the securities and otherproperties forming part of the Member-Brokers BaseMinimum Capital Contribution.

(ii) appropriate and utilize the proceeds of such sale, realizationand/or liquidation towards paying and discharging theconcerned members and/or the Member-Brokers obligationsand/or augmenting and/or replenishing the Fund and/orotherwise in accordance with the Exchanges Rules, Bye-lawsand Regulations, 957 (as amended from time to time);

(c) If the net proceeds of such sale, realization and/or liquidation areless than the sum mentioned at item 2 of the Annexure to thisLetter-Agreement, the Member-Broker shall forthwith pay thedeficiency to the Exchange / the Defaulters Committee within 7(seven) days of the Exchange / the Defaulters Committee calling

upon the Member-Broker to do so, failing which the Member-Broker,if not already declared a defaulter, shall be liable to be declared adefaulter;

Cont. 3

. 3 .

(d) If the net proceeds of such sale, realization and/or liquidationexceed the sum mentioned at item 2 of the Annexure to this Letter-Agreement, the Exchange shall pay such excess to the Member-Broker;

5. The Member-Broker agrees and undertakes to forthwith replenish

his/her/its Base Minimum Capital Contribution in the event of the value ofthe Member-Broker Base Minimum Capital Contribution at any time beingless than the required value for any reason whatsoever (including byreason of all or any portion of the Member-Brokers Base Minimum CapitalContribution being utilized).

6. The Member-Broker agrees and undertakes to forthwith furnish additionalmoney, deposits, securities, etc. as his/her/its Base Minimum CapitalContribution if the Exchange increases the value of the Base MinimumCapital required to be maintained by the Exchanges members.

7. This Letter-Agreement shall apply mutatis mutandis to all cash, securities,

deposits and other property, which may at any time hereafter be furnishedby the Member-Broker for replenishing his/her/its Bse Minimum CapitalContribution and/or towards further Base Minimum Capital Contribution.

8. The Exchange or the Defaulters Committee may permit the Member-Broker to withdraw all or any part of the Member-Brokers Bse MinimumCapital Contribution upon the Member-Broker furnishingadditional/alternate cash, securities, deposits and/or other property or

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otherwise on such conditions, if any, as the Exchange or the DefaultersCommittee may think fit to impose.

9. This Letter-Agreement is in addition to any and all other rights of theExchange and no provision of this Letter-Agreement shall be construed aslimiting , restricting or otherwise prejudicially affecting or derogating fromany right of the Exchange.

10. The Member-Broker shall be liable to bear and pay the stamp duty withwhich this Letter-Agreement is chargeable.

IN WITNESS WHEREOF the Member-Broker has executed this Letter-Agreement.

ANNEXURE

Base Minimum Capital Contribution

1. Cash Contribution Rs. ________________/-

Money : Rs. ________________/-

Deposits : Rs. ________________/-

2. Value of Non-Cash Contribution Rs. ________________/-as on _________________.

3. Total Value of Member-BrokersBse Minimum Capital contribution Rs. ________________/-

Yours truly,

Name :

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Clearing Code No. :

Address :

Date :

Place :

Annexure 2Trade guarantee fund format

(To Be Submitted to CSD DEPT.)

LETTER OF GUARANTEE

[FINAL TO BE ON STAMP PAPER] Rs. 100/-

From :________________________[INSERT NAME OF BANK]

[INSERT ADDRESS OF CONCERNED BRANCH]

(hereinafter referred to as the Bank)

To:

Bombay Stock Exchange Ltd.Phiroze Jeejeebhoy Towers,Dalal Street,Fort,Mumbai 400 001.

(hereinafter referred to as the Exchange)

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WHEREAS :-

(i) [DELETE INAPPLICABLE PORTIONS >>> MR./Ms._______________ / M/s. _______________ a sole proprietary concern ofMr./Ms._________________ ___ / M/s.__________________________, apartnership firm registered under the Indian Partnership Act, 1932, /

__________________________ Pvt. Ltd., a company incorporated under

the Companies Act, 1956, having its registered office at_________________________ , _________________________________,(hereinafter referred to as the Member Broker) is a member of theExchange;

(ii) Pursuant to Bye-law [374] of the Exchanges Rules, Bye-laws andRegulations, the Exchange has called upon the Member Brokerto procure in favour of the Exchange a bank guarantee in thesum of Rs. 10,00,000/- (Rupees Ten Lakhs only) (hereinafterreferred to as the Guaranteed Sum),

(iii) The Member Broker has requested the Bank to furnish this

bank guarantee in favour of the Exchange, which the Bankhas agreed to do, and hereby does, as under : Cont. 2

. 2 .

IT IS HEREBY AGREED BY THE BANK AS UNDER:-

1. We, the abovementioned Bank, do hereby agree, undertake and

guarantee that if the Member Broker fails to fulfill, perform or pay anyduties, obligations or liabilities to the Exchange, the Exchanges ClearingHouse or any Member of the Exchange then the Bank shall, forthwith uponthe Exchange calling upon the Bank to do so (and in any event within theperiod specified at paragraph 3(v) below), pay to the Exchange such sumas the Exchange may specify (not exceeding the Guaranteed Amount).

2. Any statement in writing by the Exchange that an event specified atparagraph I above has occurred shall be conclusive, final and blinding andshall not be questioned by the Bank.

3. The Bank shall pay the amount payable by it under paragraph I above to

the Exchange :-

(i) without any demur, protest or contestation,

(ii) without any counterclaim, deduction or set-off;

(iii) without making any reference to the Member Broker;

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(iv) notwithstanding any (a) dispute, claim, contention or contestationby the Member Broker, or (b) any dispute or claim between theExchange and the Member Broker, or between the Exchange andthe Bank, or between the Member Broker and the Bank, and

(v) within twenty four hours of receipt of a written notice from theExchange calling upon the Bank to pay such amount; Provided that

if such twenty four hours period expires on a day which is a Sundayor a public holiday (as defined under Section 25 of the NegotiableInstruments Act, 1881) in Mumbai then such amount shall be paidon or before the next day which is not a public holiday).

4. The decision of the Exchange as to the amount payable by the MemberBroker and/or by the Bank under this guarantee shall be final and binding.

5. The Exchanges right under this guarantee shall not be prejudiced by thefailure of the Member Broker to comply with the Rules, Byelaws orRegulations of the Exchange. The Exchange shall be at liberty to vary,amend, change or alter its Rules, Bye-laws and Regulations (including

those relating to membership of the Exchange, default, settlement,security, liability of members and trade guarantee, in general or asapplicable to the Member Broker in particular) without thereby affectingthe Exchanges rights against the Member Broker or the Bank or any othersecurity furnished by the Member Broker now or hereafter held or takenby the Exchange. The Decision to make a demand under this guaranteeshall exclusively be that of the Exchange and the Exchange shall beentitled to make a demand hereunder notwithstanding that it (or anycommittee of the Exchange) may be in possession of any deposits,securities or other assets or security of the Member Broker.

Cont. 3

. 3 .

6. The Exchanges rights under this guarantee shall not be prejudiciallyaffected in any manner whatsoever if the Exchange takes any actionagainst the Member Broker including action by way of declaration offdefault, suspension or expulsion of the Member Broker from the Exchange.

7. This guarantee shall not be affected by any change in the constitution ofthe Exchange or the Member Broker or the Bank and it shall continue toremain in force notwithstanding any forbearance or indulgence that maybe shown by the Exchange to the Member Broker.

8. The Bank hereby consents to the Exchange :

(i) making any variance, change or modification of any agreement withthe Member Broker, and/or other as the Exchange thinks fit;

(ii) giving time to the Member Broker for payment of any sums duefrom the Member Broker;

(iii) making any composition with the Member Broker;

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(iv) granting any indulgence to the Member Broker;

(v) releasing or parting with any security; and/or

(vi) Agreeing not to sue the Member Broker.

The Bank irrevocably agrees that this guarantee shall not be avoided, releasedor prejudicially affected and the Bank shall not be discharged from its liabilityhereunder to the Exchange by reason of the aforesaid or by reason of any act oromission by the Exchange the legal consequence whereof may be to dischargethe Member Broker and/or the Bank or by any act or omission by the Exchangewhich would, but for this provision, be inconsistent with the Banks right as asurety. The Bank agrees that this guarantee shall remain valid and enforceablenotwithstanding any forbearance or delay in the enforcement of the terms of thecontract between the Bank and the Member Broker or of the Exchanges Rules,Byelaws and Regulations. The Bank waives all the rights available to the Bank assurety under Sections 133, 134, 135, 139 and 141 of the Indian Contract Act,1872. The Bank also agrees that the Bank shall not be entitled to the benefit of

subrogation to any security held by the Exchange.

9. The Bank agrees that in the event of the Exchange now or at any timehereafter holding any security, the Bank shall not be entitled to the benefitof such security or to receive such security notwithstanding that the Bankmay have made payment under this guarantee.

10. Any notice or other correspondence addressed by the Exchange to theBank may be addressed to the Assistant General Manager of the Banksbranch office address stated hereinabove or to such other address as theExchange may be aware. Such notice/correspondence may be served byordinary post or hand delivery or otherwise and, in case of post, shall be

demand to have been served on the Bank at the time it would have beendelivered in the normal course.

. 4 .

11. The Bank shall not be entitled to revoke this guarantee during its currencyexcept with the previous written consent of the Defaulters Committee ofthe Exchange.

12. Notwithstanding anything mentioned hereinabove, the aggregate liabilityof the Bank under this guarantee is restricted to Rs. ________________(Rupees ________________ _________________________________ only) and it will

remain in force for a period of 12 month, i.e. up to ___________________ dayof ______________________. Unless a claim/demand in writing is madeagainst the Bank under this guarantee before the expiry of three monthsfrom the aforesaid date, i.e. before the ______________ day of

___________________ all rights of the Exchange under this guarantee shallcease and the Bank shall be relieved and discharged from all liabilitiesthere under.

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Yours truly,

Date:

Place: MUMBAI

Annexure 3

(FIVE POINT UNDERTAKING ON BANKS LETTER HEAD)(To Be Submitted to CSD DEPT.)

Bombay Stock Exchange Ltd.Phiroze Jeejeebhoy TowersDalal Street

Mumbai 400 001.

Dear Sir,

We refer to deposit receipt (FDR) No. .. issued inthe name of Bombay Stock Exchange Ltd. A/c. .(memberss name) .

Sr. FDR Number Issue Date Principal Maturity Date

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No. Amount (Rs.)

We hereby confirm that,

i. There is no lock in period for encashment of the said FDR and the lien

on the said FDR has been created in favour of Bombay Stock ExchangeLtd. (BSE) only.

ii. The amount under the said FDR would be paid to BSE on demandwithout demure on or before or after the maturity of the said FDRwithout any reference to M/s. .. (members name).

iii. The FDR is payable at Mumbaiiv. Encashment by BSE, whether premature or otherwise would not

require any clearance from M/s. (members name) or any otherauthority/person.

v. We agree that on encashment of FDR by BSE, the interest accrued willalso be released to you.

vi. We undertake that at the time of encashment of aforesaid FDR No.

______________ by M/s. (member name) or any other authority/person,whether premature or otherwise will be done only if the aforesaid FDRNo. _____________ is accompanied with the release of lien letter issuedby BSE.

vii. We undertake that the aforesaid FDR No. _____________ would standautomatically renewed by the Bank on the respective maturity dates.

Yours faithfully,

For (bank) .

Authorised Signatory (with Banks stamp)

TOP

Annexure 4

(On the letter head of the member)(To be submitted to clearing BANK and Acknowledgement copy to be

submitted BOISL.)

Date : _____________

To,Name & Address of the Clearing Bank

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Dear Sir,

Sub: Authority letter for debiting the Settlement account in respect of BOISLcharges

With reference to the settlement Account No._________________ that has

been opened in your bank in our name, we hereby authorise you todebit our settlement Account with the charges or other dues, whichBOISL shall submit to you from time to time.

In the event of any wrong debit made by bank on the basis of the bills submittedby BOISL, we shall bring the same to the notice of BOISL and any adjustment tobe made shall be BOISLs end only.

We further declare that the bank would not be held responsible in any mannerwhatsoever for debiting our current account from time to time on the advise ofBOISL.

Thanking You,

Yours Faithfully,For (Clearing Member Name)Clg. No.________

NameDesignation

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Annexure 5(a)[On the Letter Head of the member (for CDSL)]

(To be submitted to BOISL)

Date:

To,

Bombay Stock Exchange LimitedDalal Street, Fort,Mumbai 400023.

Dear Sir,

Ref : Authority to debit Clearing member Principal Accounts for pay-inof Securities.

With reference to the Notice No. 116820/2002 dated March 14, 2002, we notethat:

1. The Stock Exchange, Mumbai (BSE) has established a settlement mechanismby which deals by its clearing members in securities held through the CDSLare settled through the CDSL.

2. BSE has for the aforesaid purpose established interface with CDSL.

3. As per the Bye Laws, Rules and Regulations of BSE, the members shallauthorise BSE to instruct the Depository to debit their Clearing Membersprincipal Accounts for the relevant settlement maintained with the DPs forthe relevant settlement for the purpose of meeting their delivery obligation inrespect of pay-in of securities.

4. Having due regard to the above, we hereby irrevocably authorise BSE toinstruct the Depository to debit the Clearing Members principal Accounts forthe relevant settlement for the purpose of meeting our delivery obligation inrespect of pay-in of securities from time to time.

5. We are aware that it will be our ultimate responsible to monitor our pay-inobligation from time to time.

We further undertake to abide by such other or further guidelines / instruction,as may be communicated / devised by BSE.

Yours Faithfully,

For and on behalf of Clg. No. _________

Authorised signatory.

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Annexure 6(TWO original copies to be submitted to DOT)

To:

The Department of Operations and Trading (DOT 2nd

Floor) (Twooriginal copies to be submitted to DOT)BSEWebx Registration- Application form for broker

1. Name of the Member Firm

2. BSE Clearing No.

3. SEBI Registration Number4. SEBI Registration Date5. PAN No.6. Correspondence Address with

pincode

7. E-Mail Address where WEBXrelated Communications are to besent

8. Contact Persons Details:a. Name of Personb. Telephone Numberc. Mobile Numberd. E-Maile. Phonef. Fax

9. Modules Applying forPlease tick on the module you want to

activate

(Please note that UCC & MemberDatabase will be available to allmembers by default)

Internet Trading (ITS)

Electronic Contract Note

(ECN)

Unique Client Code

(UCC)

Member Database10.

ECN Details(Required only if you areapplying for ECN module) :

a. Certifying Authority TCSb. Serial Number of Digital

Certificatec. Date of Issue of digitalCertificated. Date of Expiry of DigitalCertificate

Declaration:I hereby agree to the Terms and conditions mentioned as part of theannexure II and agree to pay the charges as defined by the exchangefrom time to time.

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Authorised Signatory(Affix company stamp)

Annexure 7

Pro Account Format to be submitted on members letterhead(To be submitted to MEMBERSHIP DEPT.)

Date:

To,Member Services and DevelopmentBSE LimitedMumbai

Kind Attn: Deputy General Manager

Sub: Pro-account Trading Terminal

Dear Sir,

I/ we refer to the Exchange Notice 20070516-4 dated Wednesday, May 16,2007 on the captioned subject.

In this connection, the details of the trading terminals from where I / we areplacing orders on Own Account are as under:

(1)

(2) (3) (4) (5) (6)

Sr.No BSETerminalNo./ BSEIML ID No.

User NamewithDesignation

PostalAddress Name of theDirectors,AuthorisedPersons alongwith theDesignationsupervisingstationed atthe location

DefaultlocationYes or No& Addressof Defaultlocation

I/ we hereby undertake that I/ we will not place any order on Own Accountthrough any other terminals and location mentioned above without the priorapproval of the Stock Exchange, Mumbai.

Thanking you,Yours faithfully,

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Signature(Director/ Authorized Signatory)

Annexure 8(To be submitted to MEMBERSHIP DEPT.)

On the letter head of the Member

The Membership DepartmentBombay Stock Exchange Limited1st Floor, Rotunda Building,Dalal Street, Fort,Mumbai 400 001.

Dear Sir,

Sub: Commencement of Business

We would like to inform you we have completed the below mentioned formalities

1. Deposit of trade Guarantee Fund and Initial contribution of Rs.10,000/- andTGF agreement

2. Rs. 10,00,000/- cash/ FDR/BG towards TGF3. Application for Connectivity4. Insurance premium5. Bank Account details as mentioned below (attach proof)

Sr.No.

Particulars Details

1 Name of BankClient AccountSettlement AccountOwn Account

6. CDSL and NSDL Accounts as mentioned below (attach proof)

Sr.

No.

Particulars Details

1 NSDL Account NumberCDSL Account Number

A) Principal Account (Pay-inAccount)

B) Pool Account (pay-out Account)C) CISA Account

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We would like to commence our business from ____________ (date). Request youto do the needful.

We further declare that we are not associated as sub brokers with anyof the member of Bombay Stock Exchange. (or) We are registered assub brokers with SEBI Registration number

with the main member < Name of the main member > with SEBI

registration number. Please note that we have / are canceling our sub brokership and please find the relevant documents enclosed regardingthe proof for submission of cancellation of / documents for cancellationof our sub brokership

Thanking you,For (Member Name)

Designated Director

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Annexure 9

ON MEMBERS LETTERHEADThe Deputy General ManagerThe Member Services & Development Department28th Floor, P. J. Tower,Dalal Street, Fort,Mumbai 400 001.

Sub: Appointment of Compliance Officer

Dear Sir/ Madam

I/We have appointed Shri./Ms.---------------- as our Compliance officer in keepingwith the Regulation 18A of the SEBI (Stock Brokers and Sub-brokers)Regulations, 1992.

$We wish to inform you that Shri./Ms. -----------is a new appointment with effectfrom / is a replacement in place of Shri./Ms. -------------- who has ceased to be ourcompliance officer with effect from..

Information on the Compliance Officer is as below:

Name of the new

complianceofficerappointed

Qualification

TelephoneNo. and

MobileNumber

OfficeAddres

s

EmailAddre

ss

Nameof

Father/Relative

Residentialaddress

PreviousEmploym

ent/Name otheOrganization

I/We hereby undertake that we will keep the Exchange informed of any futurechange in the compliance officer.

Yours faithfully counter signed by

For ------------ (name of the member)

Signature of Member/ Director Signature of the ComplianceOfficer

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$ Strike off what is not applicable to you

CHECKLIST FOR MEMBERS

Name of the Member

Clg. No.

Date of commencement of Business

Sr.

No.Formalities to be completed

Pending /

Completed

To Be Submitted

to1. TGF of Rs.10 lakhs + agreement Yes No

Clearing &Settlement Dept.( 1St Floor)

2. balance payment apart from TGF Yes NoMembershipDepartment ( 28th

Floor)

3. Insurance

Yes No

Investment &AccountsDepartment

4. Connectivity Yes No

DOT ( Networks)2nd Floor

5. BOLT IDs registration form Yes No


6. Bank Accounts

Yes No

MembershipDepartment ( 28th

Floor)

7. CDSL & NSDL Accounts

Yes No


Floor)

8.Webx for UCC Yes No


9. Pro Account Submission

Yes No

Membership

Department ( 28th

Floor)

10.

Signature Card

Yes No


Floor)

11.

Identity Card forms

Yes No

Identity CardDepartment ( 2nd

Floor)

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12.

Auto Payin Facility Yes No

BOISL ( GroundFloor)

13.

Letter for Appointment ofCompliance Officer

Yes NoMembershipDepartment ( 28th

Floor)

Documents

Procedural Requirement for Commencement of Business 26032010