TaxTMI 
TaxTMI 
Securities And Exchange Board of India (Stock Brokers And Sub-Brokers) (Second Amendment) Regulations, 2013)
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....- (i) the opening statement shall 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,- "(f....
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....t of registration. 5. The Board shall take into account for considering the grant of a certificate, all matters relating to trading, settling or dealing in securities 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....
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.... in control, he shall obtain prior approval of the Board for continuing to act as such after the change; (d) he shall pay fees charged by the Board in the manner provided in these regulations; (e) he shall take adequate steps for redressal of grievances, of the investors 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 co....
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.... A stock broker registered with the Board, who desires to operate in any segment(s) of the clearing corporation promoted by the stock exchange of which he is a member, shall apply to the concerned clearing corporation in the manner specified by the Board. (4) On receipt of an application under sub-regulation (2) or sub-regulation (3), the 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....
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....licant or its director or partners, any time convicted of any economic offence? If so, furnish the details. 6. Whether the applicant or its directors or partners, declared insolvent or declared defaulter by any exchange? If so, furnish details. 7. Whether the applicant or its directors or partners at any time subjected to any proceedings or penalty by the Board under SEBI Act or any of the regulations framed under the SEBI Act? If so, furnish the details. 8. Whether any disciplinary action has been initiated/ taken or penalty has been imposed by SEBI/ stock exchange(s)/ clearing 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 recommende....
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.... 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 Clearing Corporation and is recommended for registration with the Securities and Exchange Board of India. Signature : Name : Designation : (iii) Form AB, Form AC, Form DA, Form DB and Form DC shall be omitted; (iv) for Form D, the following shall be substituted, namely, - "FORM D [Regulations 6 and 10B] CERTIFICATE OF REGISTRATION In exercise of the powers conferred 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....
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....-clause (c) or (d) of clause 1 may opt to pay fees in accordance with this Schedule before completion of the relevant time periods mentioned in those sub-clauses, by exercising an option in writing to that effect and communicating it to the Board, in such manner and within such time as may be specified by the Board. PART B CHARGE OF FEES 3. (1) On and from the applicability of this Schedule, every stock broker/ clearing member/self clearing member shall pay to the Board in accordance with Part C, a fee in respect of the securities transactions including off-market transactions undertaken by them, at the rates mentioned below: Segment Rate/ Amount (in Rs.) Remarks Stock Broker Clearing member Self-clearing member Cash 0.0001 per cent of the price at which the securities are purchased or sold (Rs. 10 per crore) * * All sale 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 ....
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.... clause (b). (2) Every recognized stock exchange shall collect from every stock broker in any segment other than cash segment, the fee payable under clause 3 in respect of turnover in the relevant segment of that stock exchange in accordance with the provisions of its bye-laws. (3) The fee collected by a recognized stock exchange under sub-clause (1) or (2) of this clause during a calendar month shall be paid by the stock exchange to the Board by the fifth working day of the following calendar month. (4) All recognized stock exchanges shall maintain such registers and furnish such returns or information to the Board in respect of the fee collected under this Schedule, as may be specified by the Board. (5) Without prejudice to sub-clause (4), a recognized stock exchange shall also be liable to furnish such information or explanations to the Board as may be required by it in respect of fee collected or liable to 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....
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.... separate networth for the other segments requiring lower networth. TABLE ON NETWORTH AND DEPOSIT Segment Stock Broker (in Rs.) Clearing member (in Rs.) Self-clearing member (in Rs.) Networth Deposit Networth Deposit Networth Deposit Cash * * * * * * Equity Derivatives * * 3 crore 50 lakh 1 crore 50 lakh Currency Derivatives 1 crore * 10 crore 50 lakh 5 crore 50 lakh Debt 50 Lakh (including for proprietary trading member) * 3 crore * 1 crore * * As may be specified by the Board from time to time. Explanation.- For the purposes of this Schedule, 'networth' shall mean paid up capital, free reserves and other securities approved by the Board from time to time but shall not include fixed assets, pledged securities, value of member's card, non-allowable securities (unlisted securities), bad deliveries, doubtful debts and advances (debts or advances overdue for more than three months or debts or advances given to the associate persons of the member), prepaid expenses, losses, intangible assets and 30% value of marketable securities: Provided that the deposit requi....
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.... and Sub-Brokers) (Amendment) Regulations, 2003 vide S.O. No. 1095 (E). (n) November 20, 2003 by the SEBI (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations, 2003 vide F. No. SEBI /LAD /20795 /2003. (o) March 10, 2004 by the Securities and Exchange Board of India (Criteria for Fit and Proper Person) Regulations, 2004 vide S.O. No. 398(E). (p) August 1, 2006 by the SEBI (Stock Brokers and Sub-Brokers) (Amendment) Regulations, 2006 vide S.O. No. 1235 (E). (q) September 7, 2006 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) (Second Amendment) Regulations, 2006 vide S.O. No. 1447 (E). (r) September 25, 2006 by the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers)(Third Amendment) Regulations, 2006 vide S.O. No. 1600(E). (s) May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 vide Notification No. LAD-NRO/GN/2008/11/126538. (t) August 11, 2008 by the Securities and Exchange Board of India (Stock Brokers and Sub Brokers) (Amendment) Regulations, 2008 vide Notification No. LADNRO/GN/2008/20/134766. (u) June 29, 2009 by the Securities and Exchange Board of India....