17 January 2008
N O T I C E
Members are aware
that consequent upon several representations received by the Exchange from the
members to accept FDR, Shares and BGs as co-lateral securities for obtaining
exposure in trading under the BSE-CSE arrangement, the matter had been examined
by the Exchange authorities. As a temporary measure, to facilitate members to
trade on BSE platform, members may deposit a bank guarantee as per the format
enclosed herewith within an overall limit of Rs.25 lacs per member.
Members are
requested to note the above and take necessary action.
(Secretary)
Format
of Bank Guarantee towards
Base
Minimum Capital and Additional Capital (Liquid Assets)
(To
be on Stamp/Franked Paper of Rs.100/- or the value prevailing in the State
where executed, whichever is higher)
BG
No. : ____________________.
BG
Date : ____________________.
From :
|
(Bank
Name & Address)
|
(Hereinafter referred to as "the Bank")
To
The Calcutta Stock Exchange
(CSE) Association Ltd,
7,Lyons Range, Kolkata-700
001.
(Hereinafter referred to as "the Exchange (CSE)")
WHEREAS:
(i)
(Delete
inapplicable portion >>>>) Mr./Ms./M/s.____________________________, an individual / a sole
proprietary concern / a partnership firm / a body corporate, registered /
incorporated under the provisions of the Indian Partnership Act, 1932 / the
Companies Act, 1956, having his / her / its Registered Office at
..
..
.
.
..
.. ..
.. .. .. .. .. .. .. .
.. ..
.. .. .. .. .. .. .. ..
.. .. .. .. .. .
is
a Trading Member of the Equity
Segment of the Exchange (CSE) as well as BSE Trading Platform under the
BSE & CSE Agreement having Membership No.
, hereinafter referred to as the Trading Member (which expression
shall unless repugnant to the context or meaning thereof be deemed to mean and
include his / her / its successors, administrators and permitted assignees);of
The Calcutta Stock Exchange (CSE) Association Ltd.
.2
: 2
:
BG No. : ____________________.
BG
Date : ____________________.
(ii)
Trading Members in the Equity Segment of
CSE and /or Trading Member of BSE trading platform under BSE & CSE
agreement shall required to keep a certain amount as additional capital (liquid
assets) with the Exchange (CSE) for availing of the trading limits and / or adjustment against margins prescribed
by the Exchange (CSE) from time to time.
(iii)
Trading Members are also required to pay
to the Exchange (CSE), various types of margins (comprising, inter alia, of
Value at Risk margin, Extreme Loss margins, mark-to-market margins, Special
margins, gross exposure, additional volatility margins, etc.) as & when imposed
or any other margins in cash or any other form of collateral based on their
exposure and volume of the business done on the Exchange (CSE) that may be
prescribed by the SEBI, BSE & CSE from time to time.
(iv)
Trading Members are also required to
fulfill their engagements, commitments, and obligations arising out of trading
& settlement system of the Exchange (CSE).
(v)
The Exchange (CSE) desires that the
maintenance of the additional capital (Liquid Assets) / payment of various
margins as also the obligations arising out of clearing and settlement of
trades executed on the Exchange (CSE) as well as BSE Trading Platform under the
BSE & CSE Agreement may be secured by Trading Members, inter alia, by
executing a Bank Guarantee in its favour.
(vi)
At the request of the Trading Member, the
Exchange (CSE) has agreed to accept a Bank Guarantee issued in its favour from
Scheduled Commercial Banks for an amount of Rs. _____________, (Rupees
__________ _________________only) in lieu of equivalent additional capital
(liquid assets) requirement, various margin payments as required by the
Exchange (CSE) from time to time and to meet his / its obligations and
commitments under the trading & settlement system of the Exchange (CSE).
(vii)
The Trading Member has requested the Bank
to furnish to the Exchange (CSE) a bank guarantee of Rs. _____________ (Rupees
_______________ _____________only).
THE
BANK HEREBY AGREES AS UNDER: -
1. We,
the above-mentioned Bank at the request and desire of the Trading Member do
hereby irrevocably and unconditionally guarantee to pay Rs. _____________
(Rupees _______________ _____________) to the Calcutta Stock Exchange (CSE)
Association Ltd., as a security for additional capital (liquid assets), various
margin requirements and due performance and fulfillment by the Trading Member
of his / its engagements, commitments, operations, obligations or liabilities
arising out of the trading and settlement system of the Exchange (CSE) as well
as BSE Trading Platform under the BSE & CSE Agreement. The Bank agrees and
confirms that the said guarantee shall be available as a security for meeting,
satisfying, discharging or fulfilling all or any obligations or liabilities of
the Trading Member arising out of additional capital (liquid assets), various
margin payments and trading and settlement system of the Exchange (CSE) as well
as BSE Platform directed and decided by the Exchange (CSE) or such other person
or persons or committee or committees appointed by the Governing Board of the
Exchange (CSE) or by the Exchange (CSE) from time to time.
3
: 3 :
BG No. : ____________________.
BG
Date : ____________________.
2. The
Bank hereby agrees that if in the opinion of the Exchange (CSE), the Trading
Member has been or may become unable to meet, satisfy, discharge or fulfill any
obligations, liabilities or commitments or any part thereof to the Exchange (CSE)
arising out of the additional capital (liquid assets), various margin payments
or its clearing & settlement mechanism / arrangement of the Exchange (CSE)
as well as BSE Trading Platform under the BSE & CSE Agreement, then without
prejudice to the rights of the Trading
Member under its Rules, Bye-laws and Regulations or otherwise, the
Exchange (CSE) may at any time thereafter and without giving any notice to the
Trading Member invoke this guarantee to meet the aforesaid obligations,
liabilities or commitments of the Trading Member.
3. The
Bank undertakes that on first demand of the Exchange (CSE), it shall, without
any demur, protest or contest and without any reference to the Trading Member
and notwithstanding any contest by the Trading Member, pay to the Exchange
(CSE) a sum not exceeding Rs._________ (Rupees _____________ _____________ ) as
may be demanded by the Exchange (CSE) . The decision of the Exchange (CSE) from
time to time as to the obligations or liabilities or commitments of the Trading
Member and the amount claimed shall be final and binding on the Bank.
4. This
guarantee shall not be prejudiced by the failure of the Trading Member to
comply with the Rules, Bye-laws and Regulations of the Exchange (CSE). The
Exchange (CSE) shall be at liberty to vary, amend, change or alter any terms or
conditions or its Rules, Bye-laws or Regulations relating to Trading Membership
of the Exchange (CSE) in general or as applicable to the Trading Member in
particular without thereby affecting its rights against the Trading Member or
the Bank or any security belonging to the Trading Member now or hereafter held
or taken by the Exchange (CSE), at any time. The discretion to make demands
under this guarantee shall exclusively be that of the Exchange (CSE) and the
Exchange (CSE) is entitled to demand hereunder notwithstanding being in
possession of any deposits or other securities of the Trading Member.
5. The
validity of this guarantee shall not be affected in any manner whatsoever if
the Exchange (CSE) takes any action against the Trading Member including
default, suspension or expulsion of the Trading Member from the Exchange (CSE).
Once a Trading Member is suspended or expelled, the Exchange (CSE) should
ensure that the Trading Member would not be allowed to do any fresh business
through the Exchange (CSE) till the suspension or expulsion is revoked /
annulled and any liability subsequent to the default, suspension or expulsion
would not be covered by this guarantee.
6. This guarantee shall not be affected by any
change in the constitution of the Exchange (CSE) or the Trading Member or the
Bank and it shall remain in force notwithstanding any forbearance or indulgence
that may be shown by the Exchange (CSE) to its Trading Members.
4
: 4
:
BG
No. : ____________________.
BG
Date : ____________________.
7. The Bank undertakes to pay to the Exchange
(CSE), the amount hereby guaranteed within twenty
four hours (excluding any holidays or bank strike) of being served with a
written notice to the Branch Manager of the Bank's Branch office address stated
hereinabove or to such other address as the Exchange (CSE) may be aware of
either by hand delivery or by Registered Post or by Speed Post or by Courier
Service, requiring the payment of this amount.
8. The Bank hereby consents to the Exchange
(CSE) for:
(i)
Making any variance, change or
modification of any agreement with the Trading Member and/or others as the
Exchange (CSE) thinks fit;
(ii)
Giving time to the Trading Member for
payment of any sums due from the Trading Member;
(iii)
Making any compromise with the Trading
Member;
(iv)
Releasing or parting with any security;
and / or
(v)
Agreeing not to sue the Trading Member.
9. The
Bank irrevocably agrees that this guarantee shall not be avoided, released or
prejudicially affected and the Bank shall not be discharged from its liability
hereunder to the Exchange (CSE) by reason of the aforesaid or by reason of any
act or omission by the Exchange (CSE), the legal consequence whereof may be to
discharge the Trading Member and / or the Bank or by any act or omission by the
Exchange (CSE) which would, but for this provision, be inconsistent with the
Bank's right as a surety. The Bank agrees that this guarantee shall remain
valid and enforceable notwithstanding any forbearance or delay in the
enforcement of the terms of the contract between the Bank and Trading Member or
of the Exchange (CSE)s Rules, Bye-laws and Regulations. The Bank waives all the
rights available to the Bank as surety under Section 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
(CSE).
10. The Bank agrees that in the event of the
Exchange (CSE) now or at any time hereafter holding any security, the Bank
shall not be entitled to the benefit of such security or to receive such
security notwithstanding that the Bank may have made payment under this guarantee.
11. The
Bank undertakes not to revoke this guarantee during its currency except with
the previous consent of the Exchange (CSE) in writing and this guarantee shall
be continuous and irrevocable.
12. The Bank hereby states that this guarantee is
not issued on the basis of any arrangement with or counter guarantee of any
other Bank.
13. Notwithstanding
anything mentioned hereinbefore, the aggregate liability of the Bank under this
guarantee is restricted to Rs. ____________ (Rupees ___________________________)
and it will remain in force for a period of ___ months i.e. upto ______ day of
__________ ______.
.5
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:
BG No. : _____________________.
BG Date : ____________________.
14. Unless
a claim/demand in writing is made against the Bank under this guarantee before
the expiry of three months from the aforesaid date, i.e., on or before ______
day of __________ _______, all rights of the Exchange (CSE) under this
guarantee shall cease and the Bank shall be relieved and discharged from all
liabilities hereunder.
Executed
at ______________, this ______ day of ____________, ________.
For _____________________________ (Bank)
____________________________ (Name of the Branch)
Sd. /-
Authorized Signatories
Seal of the Bank.