Dated: 17th January 2013




Re: Requirement of Base Minimum Capital (BMC) for Stock Brokers/Trading Members of CSE


Attention is drawn to CSE’s Notice dated 20th December 2012, bringing the provisions of SEBI Circular No. CIR/MRD/DRMNP/36/2012, dated December 19, 2012 to the notice of stock brokers/trading members of the Exchange on the subject captioned above. 


In continuation to the aforementioned circular, Trading Members are requested to take note of introduction of the following categories of trading members for maintenance of Base Minimum Deposit (BMC) based on the profile of the trading members as under:



Profile of Trading Members

Total BMC Amount (Rs.)

Out of total BMC, deposit in “Cash Equivalents”  (Rs)

Cash Deposit on which Interest would accrue to SGF (Rs)

Amount of Lien Marked Fixed Deposit that can be accepted (Rs)


Only Proprietary trading without Algorithmic trading (Algo)

4 Lac


2 Lac

1 Lac

3 Lac


Trading only on behalf of Clients (without proprietary trading) and without Algo

6 Lac


3 Lac

1.5 Lac

4.5 Lac


Proprietary trading and trading on behalf of Clients without Algo

10 Lac


5 Lac

2.5 Lac

7.5 Lac


Trading Members/ Brokers with Algo

20 Lac

10 Lac

5 Lac

15 Lac



All Trading Members of the Exchange are advised to inform the Exchange in writing about their nature of trading and choose any one category latest by 15th February 2013 to enable the Exchange to enhance/reduce the requirement of their applicable BMC as above.  In case a trading member does not inform about their profile of trading, it would be presumed that the trading member would be trading on their proprietary account as well as trading on behalf of Clients without Algo and will be classified in Category 3 by default.


All Trading Members are requested to take note of the above and inform about the nature/profile of trading accordingly.




B.Madhav Reddy