Requirement of Base Minimum Capital for Stock Broker and Trading Member

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..../SE/Cir-07/2005 dated February 23, 2005 had prescribed the requirement of Base Minimum Capital (BMC) for stock brokers trading on stock exchange. BMC is the deposit given by the member of the exchange against which no exposure for trades is allowed. 2. The BMC deposit requirement was prescribed to be commensurate with the risks, other than market risk, that the broker may bring to the system. Ove....

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....members shall maintain the prescribed BMC based on their profiles - Categories BMC Deposit Only Proprietary trading without Algorithmic trading (Algo) ₹ 10 Lacs Trading only on behalf of Client (without proprietary trading) and without Algo ₹ 15 Lacs Proprietary trading and trading on behalf of Client without Algo ₹ 25 Lacs All Trading Members/Brokers with Algo ₹ ....

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....aving nation-wide trading terminals. e. For stock brokers / trading members of exchanges not having nation-wide trading terminals, the deposit requirement shall be 40% of the above said BMC deposit requirements. f. The BMC deposit shall be maintained for meeting contingencies in any segment of the exchange. For members having registration for more than one segment of the same exchange, the BMC....

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....directed to: (i) make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision. (ii) bring the provisions of this circular to the notice of the stock brokers / trading members of the stock exchange and also to disseminate the same on the website. (iii) communicate to SEBI, the status of implementation of the provisions of this circular....