Dated: 19th September 2013




Re: Procedure for surrender of SEBI Registration



Trading Members are hereby informed that the procedure for surrender of SEBI Registration is being revised in line with the procedure adopted by other national exchanges.  For a better understanding of the members for surrender of business/SEBI Registration, the process flow involved in this regard is given below: 


  1. Stage I: The Trading Member has to first voluntarily close down his/their business for a minimum period of 6 months. Request letter stating the voluntary closing of business with effect from particular date and also mentioning the reason for surrender should reach the deposited with the Membership Department of the Exchange. In case of a corporate, the request for voluntary closing of business and surrender of SEBI Registration should be supported by a Board Resolution.  In case of an active Trading Member, the request letter for voluntary closure should reach atleast 10 days in advance of the “Closure Date” to enable the Exchange for initiating necessary action for deactivation of TWS etc.



  1. Stage II: On completion of the mandatory six month period, the trading member has to submit the documents for surrender of membership as per checklist given in the Exchange website at under members here - membership forms – surrender request. During the voluntary closure of business, the member should ensure the following:


a)      All the sub-brokers and authorized persons affiliated under them have to be cancelled/surrendered for cancellation i.e the member should apply to the Exchange for cancellation of the same.

b)      Member should ensure that all outstanding dues of the Exchange and SEBI are cleared.


  1. Stage III: After receiving all required documents for surrender, the Exchange issues notice to the members of the Exchange inviting claims if any against the member willing to surrender the SEBI Registration, within seven working days from the date of the notice of the Exchange and also seek details from all Stock Exchanges in India regarding (i) association of the member with any of their defaulter member brokers (ii) pending investigation/inquiry by the Exchange and (iii) complaints/arbitration/disciplinary proceedings pending in their Exchange etc., and allows them 15 days time from the date of the Exchange letter to report


  1. Stage IV: Upon completion of the time period, if there are no claims against the member by the other members of the Exchange and no adverse reports from other Exchanges, the Exchange places the surrender request before concerned authorities of the Exchange and thereafter forwards the file to SEBI for its consideration and cancellation of the Registration Certificate.


Henceforth, trading members willing to surrender their SEBI Registration are required for follow the above guidelines and process flow.  Members are requested to take note of the same and act accordingly.


MAV Raju

General Manager