TaxTMI 
TaxTMI 
Application for recognition of clearing corporation under regulation 4/ Application for renewal of recognition of clearing corporation under regulation 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018
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....llip;………. ………………………. Subject: Application for recognition or renewal of recognition of a clearing corporation under regulation 4/regulation 12 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018. Sir, 1. We/I on behalf of .................. (name and address of clearing corporation) being a clearing corporation hereby apply for recognition/renewal of recognition for the purposes of the said Act in respect of clearing and settlement of contracts in securities. 2. Two copies of the rules, memorandum and articles of association relating in general to the constitution and management of the clearing corporat....
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....n of the clearing corporation. 7. Has your business viability plan been appraised by a reputed agency having expertise in securities market for its viability? Give a copy of the appraisal report. 8. Have you entered into an agreement with recognised stock exchange(s) for clearing and settling its trades? Give the name of such stock exchange(s) and details of its organisation and management. Part II - Clearing membership of clearing corporation. 9. State the number of clearing members at the time of application. Also specify how many are inactive. 10. State whether there is any provision, resolution or convention for limiting the number of clearing members and whether in pursuance thereof you have fixed a ceiling on the number of cleari....
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....e? 21. Do you undertake periodic inspection of your clearing members? Give details including the number of annual inspections and manpower available for conducting inspection. Part III - Governing Board 22. What is the present strength of your governing board? Give details of the constitution, powers of management, election and tenure of office of members of the governing board, and the manner in which its business is transacted. 23. Are any trade or commercial interest represented on your governing board? If so, give details of interests represented. 24. Do you associate members of investors associations with the management of your clearing corporation? If so, state the manner in which it is done. 25. Are there any Government or the ....
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....r admitting derivative transactions for clearing and settlement? 36. Do you have the right to prohibit, withdraw or suspend clearing and settlement of dealings admitted for clearing and settlement? If so, under what circumstances is this right exercised? 37. Give details of the clearing and settlement charges and other charges, if any, levied by your clearing corporation. 38. What provisions have you made for periodical settlement of contracts and differences thereunder, the delivery of, and payment for securities and the passing of delivery orders? 38. How do you fix, alter or postpone the dates of settlement? 39. Do you provide any safeguards for the prevention of market manipulation, especially in the case of physical delivery of sh....
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....antee Fund? Do you perform stress tests on a periodic basis. Give details and results of the latest stress test. 45. What is the netting procedure adopted by the clearing corporation for determining the obligations of the clearing member? 46. What is your policy in respect of settling trades of shareholder stock exchange and non-shareholder stock exchange? 47. Do you have any provisions for regulating the volume of business and exposure taken by any individual clearing member other than through a system of margins? If so, give details. 48. What provisions have you made for regulating- (a) the entering into contracts, their performance and rescission (b) the consequences of breach, default or insolvency on the part of trading or clearing....
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....lation) Act, 1956, recognition to the said clearing corporation for .................. year/years ending ....................... 20...... subject to the conditions stated herein below or as may be prescribed or imposed hereafter. Seal of the Board Date: Place: Mumbai Signature of Officer ***************** NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/121 dated 07-02-2023 w.e.f. 01-04-2023 before it was read as, "(4) We/I, on behalf of the said clearing corporation, hereby undertake to comply with the requirements of section 4 of the said Act and such other conditions and terms as may be contained in the certificate of recognition or be provided or imposed subsequently. Proof of payment by way of direct cr....