Dated: 17th June 2010
Consequent upon the decision of the Exchange authorities to disburse interest on Rs.7.50 lacs out of the Base Minimum Capital (BMC) deposit of Rs.10.00 lacs, all trading members of the Exchange are hereby informed that the Exchange had formulated a scheme wherein Rs.7.50 lacs interest free deposit held with the Exchange shall be converted into a Fixed Deposit with HDFC Bank Ltd., for a minimum period of one year and the same shall be lien marked in favour of CSE or BSE or NSE (upon commencement of the arrangement under Section 13 of SCRA) as per Exchange requirement.† Under this scheme, members shall comply with the following terms and conditions:
1. Members having full BMC of Rs.10.00 lacs in Cash Deposit shall only be eligible for this arrangement.
2. Members with shortfall of BMC should replenish their BMC with additional cash deposit to avail this facility.
3. Members will get interest directly from the HDFC Bank from the date of deposit under this scheme.†
4. Members will also get TDS Certificate in their favour from the HDFC Bank directly.
5. This arrangement has been made by the Exchange with HDFC Bank only.† Therefore, those members who want to avail the benefit of the scheme should have an account with HDFC Bank, Stephen House Branch.
6. The Exchange shall not be liable for any interest, TDS Certificate or loss of interest if any upon prematurity, change of lien on fixed deposit etc.,
7. This fixed deposit shall be auto-renewable at the prevailing rate of interest with HDFC Bank and at any time the FD closing proceeds shall be credited to the Exchange Account only.
8. The Exchange can premature the fixed deposit without any further consent of the member as per its applicable Bye-laws and Regulations in case of default of any dues to the Exchange.
9. The members having full BMC of Rs.10.00 lacs in Cash Deposit should approach the Securities Department of the Exchange with the following documents for booking the lien marked FD
a. Request Letter for booking Fixed Deposit (annexure 2) on the memberís letter head
b. Request Letter (annexure 1) on the memberís letter head
c. Copy of the PAN Card and address proof of the member duly self attested.
d. One time Board Resolution for booking FD from the member (only in case the member is a Pvt. Ltd./Ltd Company)
e. An undertaking to the Exchange for compliance of all terms and conditions of this Notice of even date as well of applicable Bye-laws and Regulations of the Exchange. (annexure 4)
10. Only upon receipt of the above documents, the Exchange will arrange fund in its account with HDFC Bank and issue the following documents to the Bank for booking the lien marked fixed deposit.
a) NOC for booking FD (annexure 3)
b) One-time hold & release letter giving details of the members.
11. Exchange will process all requests under the scheme twice in a month.† Accordingly, completed applications received from the Members from 26th of a calendar month till 10th of next calendar month would be processed by 15th of the said month and completed applications received from the Members from 11th till 25th of the calendar month would be processed by 30th of the said month.† No claim of members for interest would be entertained for the interim period of application and booking of FD.
The letter formats to the Bank, to the Exchange (as annexure) and FAQ are given below for download.† Members are requested to take note of the same and act accordingly.
For any further queries and information, members may kindly call Securities Department at 2230-8636 or call the undersigned.
DGM (Surveillance, MOP & Securities)