The Exchange has initiated a consultative
process in framing its rules, bye-laws and regulations. It intends to consult investors
and market participants before amending its Rules, Bye-laws and Regulations. These
proposals are placed on the CSE website (cse-india.com) for views/comments.
DISCUSSION PAPER
Subject: New Deposit Based Memberships of CSE
The Calcutta Stock Exchange (CSE) has got in
principal approval from BSE for its proposal for admitting Deposit Based
Members to participate in trading in BSE-CSE arrangement. The formal approval is expected shortly.
Accordingly, it is proposed to introduce
Deposit Based Membership at CSE who would be eligible to trade in both C-Star
and BSE-CSE arrangement upon the following terms & conditions.
Terms and Conditions:
- The Calcutta Stock Exchange Association Ltd. (CSE)
shall admit Deposit Based Members (Trading Membership) on its "Cash
Segment" against a deposit of Rs. 10,00,000/- (Rupees Ten Lakhs only).
- The Trading Member has only trading rights and no ownership
rights of CSEA Ltd.
- The applications should be complete in the prescribed
formats and in all respects. The specimen of the application form as well
as the other material including the terms and conditions and salient
features of the Trading Membership shall be made available.
- The application form in the prescribed format,
complete in all respects should be accompanied by a Demand Draft/Pay Order
for Rs. 1 lakhs (Rupees One lakh only) drawn in favor of "The
Calcutta Stock Exchange Association Ltd.," towards earnest money
deposit on which no interest will be payable.
- The earnest money deposit of Rs. 1 lakh (Rupees One lakhs
only) will be refunded (without interest) to the unsuccessful applicants.
- Applications can be made by individuals and corporates
who are eligible to become a Trading Member of CSE in accordance with the
Rules, Bye-Laws & Regulations of CSE and subject to such terms and
conditions as decided by CSE and SEBI from time to time.
- The successful applicants whose offers are accepted
by CSE will be required to pay the balance amount of the deposit within ONE
month from the date of receipt of the letter of acceptance of offer of the
person / corporate for Trading Membership of CSE.
- CSE will be entitled, at its sole discretion, to
forfeit the Earnest Money Deposit, if the successful applicants fail to
pay the balance amount within the stipulated time. The Earnest Money
Deposit of Rs. 1 lakh (Rupees ONE lakh only) is also liable to be
forfeited by CSE , at its sole discretion, if the successful candidate
fails to complete the necessary formalities to the satisfaction of CSE
within the stipulated time.
- The deposit of the Trading Members will be subject to
a Lock - in period of three years. Any Trading Member desiring to withdraw
his Trading Membership after such lock in period of three years or at any
point thereafter will have to give a one-year notice to that effect to CSE.
- In addition to the aforesaid amount of Rs.10 lakhs
(interest-free deposit), the Trading Member has to pay the following
amounts:
a) Base
minimum Capital - Rs.10,00,000
b) Settlement
Guarantee Fund - Rs. 2,00,000
c) Admission
Fees (non-refundable) - Rs. 25,000/- + Service Tax (As applicable)
d) Broker
Contingency Fund (non-refundable) - Rs. 1,00,000/- + Service Tax (As
applicable)
e) Annual
Subscription – 5,000/- + Service tax (As applicable)
f) Initial
Contribution towards SGF – 10,000/- + Service Tax (As applicable)
g) Any
other amount so required by CSE Ltd.
- CSE will be entitled to accept the applications for
Deposit Based Membership on such parameters and criteria as may be decided
by CSE from time to time.
- CSE reserves the right to reject any application
without assigning any reason whatsoever.
- The decision of CSE will be final and binding in all
respects.
- Applicants will have to ensure that the Designated
Directors of the applicant company are not whole time director or in full
time employment in any other company.
- Comments/Feedback:
Given the above, comment(s)/feedback is requested from the Public and
Market Participants.
- Timeline
- Comments/feedback may be sent before April 30, 2009 to Managing Director
& CEO, the Calcutta Stock Exchange Association Ltd., 7, Lyons Range,
Kolkata – 700 001