TaxTMI 
TaxTMI 
Networth and Deposit Requirements for Stock Brokers/ Clearing Members/ Self- Clearing Members
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....th the clearing corporation promoted by the respective stock exchange in the manner specified from time to time. ^7[3. The quantum of networth and deposit to be maintained by the trading member/ self-clearing member/ clearing member/ professional clearing member, dealing/clearing and settling trades in securities, shall be as specified in Table 1 and Table 2 of this Schedule.] 4. The quantum of deposit to be maintained by the stock broker/clearing member shall be separately calculated segment wise. ^8[5. The quantum of networth to be maintained by the stock broker/clearing member, as specified in Table 1 of this Schedule, shall be reckoned for all segments/stock exchanges.] ^10[6. (1) Where the trading member/ self-clearing memb....
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....etworth.] ^5[^9[(7)] Every Stock Broker shall be entitled to act as an underwriter only out of its own net worth/funds as may be prescribed from time to time.] ^11[TABLE 1 NETWORTH FOR MEMBERS DEALING IN SECURITIES Type of Member Base Networt {within 1 year of the date of notification of the Securities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2022} (in Rs.) Base Networt {within 2 years of the date of notification of the Securities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2022} (in Rs.) Variable Networth {within 1 year of the date of notification of the Securities and Exchange Board of India (Stock Brokers) (Amendment) Regulations, 2022} ....
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....ly, compulsorily and mandatorily convertible debentures / bonds / warrants which are convertible within a period of 5 years from the date of issue, 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, any debts and advances (except trade debtors of less than 3 months), prepaid expenses, losses, intangible assets and 30% value of marketable securities: Provided that in case of securities pledged to clearing corporation, the post haircut value of shares owned by the Trading Member / Clearing Member, as may be specified by the Board from time to time, shall be considered for c....
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.... in securities; 3 Substituted by the SEBI (Stock Brokers and Sub-brokers) (Amendment) Regulations, 2015.w.e.f 28-09-2015 Prior to substitution the heading for the table read as: " TABLE ON NETWORTH AND DEPOSIT" 4 Inserted by the SEBI (Stock Brokers and Sub-brokers)(Amendment) Regulations, 2015, w.e.f. 28-09-2015. 5. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/14 dated 30-03-2021 6. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/73 dated 23-02-2022 before it was read as "1. The stock broker shall have a net-worth and shall deposit with the stock exchange a sum as may be specified by the Board/ Stock Exchange for the relevant segment from time to time." 7. Substit....
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....d for all segments. It therefore means that if a stock broker/clearing member has a networth which is higher, then he may not be required to maintain separate networth for the other segments requiring lower networth." 9. Re-Numbered vide Notification No. SEBI/LAD-NRO/GN/2022/73 dated 23-02-2022 before it was read as "(6)" 10. Inserted vide Notification No. SEBI/LAD-NRO/GN/2022/73 dated 23-02-2022 11. Substituted vide Notification No. SEBI/LAD-NRO/GN/2022/73 dated 23-02-2022 before it was read as ^3[ TABLE 1 NETWORTH AND DEPOSIT FOR MEMBERS DEALING IN SECURITIES, OTHER THAN COMMODITY DERIVATIVES] Segment Stock Broker (in Rs.) Clearing member (in Rs.) Sel....