Dated: 19th September 2013
Re: Procedure for surrender of SEBI Registration
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:
- 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.
- 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 www.cse-india.com under members here -
membership forms – surrender request. During the voluntary closure of
business, the member should ensure the following:
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.
should ensure that all outstanding dues of the Exchange and SEBI are cleared.
- 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
- 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.
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.