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:

 

  1. 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).

 

  1. The Trading Member has only trading rights and no ownership rights of CSEA Ltd.

 

  1. 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.

 

  1. 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.

 

  1. The earnest money deposit of Rs. 1 lakh (Rupees One lakhs only) will be refunded (without interest) to the unsuccessful applicants.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. CSE reserves the right to reject any application without assigning any reason whatsoever.

 

  1. The decision of CSE will be final and binding in all respects.

 

  1. 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.

 

  1. Comments/Feedback: Given the above, comment(s)/feedback is requested from the Public and Market Participants.

 

  1. 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