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Membership

  • Membership for the new segment in both the exchanges is not automatic and has to be separately applied for.
  • Membership is currently open on both the exchanges.
  • All members will also have to be separately registered with SEBI before they can be accepted.

Membership Criteria

NSE

Clearing Member (CM)

  • Networth - 300 lakh
  • Interest-Free Security Deposits - Rs. 25 lakh
  • Collateral Security Deposit - Rs. 25 lakh

In addition for every TM he wishes to clear for the CM has to deposit Rs. 10 lakh.

Trading Member (TM)

  • Networth - Rs. 100 lakh
  • Interest-Free Security Deposit - Rs. 8 lakh
  • Annual Subscription Fees - Rs. 1 lakh

BSE

Clearing Member (CM)

  • Networth - 300 lacs
  • Interest-Free Security Deposits - Rs. 25 lakh
  • Collateral Security Deposit - Rs. 25 lakh
  • Non-refundable Deposit - Rs. 5 lakh
  • Annual Subscription Fees - Rs. 50 thousand

In addition for every TM he wishes to clear for the CM has to deposit Rs. 10 lakh with the following break-up.

  • Cash - Rs. 2.5 lakh
  • Cash Equivalents - Rs. 25 lakh
  • Collateral Security Deposit - Rs. 5 lakh

Trading Member (TM)

  • Networth - Rs. 50 lakh
  • Non-refundable Deposit - Rs. 3 lakh
  • Annual Subscription Fees - Rs. 25 thousand

The Non-refundable fees paid by the members is exclusive and will be a total of Rs.8 lakhs if the member has both Clearing and Trading rights.

Trading Systems

  • NSE’s Trading system for it’s futres and options segment is called NEAT F&O. It is based on the NEAT system for the cash segment.
  • BSE’s trading system for its derivatives segment is called DTSS. It is built on a platform different from the BOLT system though most of the features are common.

Settlement and Risk Management systems

  • Systems for settlement and risk management are required to satisfy the conditions specified by the L.C. Gupta Committee and the J.R. Verma committee.
  • These include upfront margins, daily settlement, online surveillance and position monitoring and risk management using the Value-at-Risk concept.

Certification Programmes

  • The NSE certification programme is called NCFM (NSE’s Certification in Financial Markets). NSE has outsourced training for this to various institutes around the country.
  • The BSE certification programme is called BCDE (BSE’s Certification for the Derivatives Exchnage). BSE conducts it’s own training run by it’s training institute.
  • Both these programmes are approved by SEBI.

Rules and Laws

  • Both the BSE and the NSE have been give in-principle approval on their rule and laws by SEBI.
  • According to the SEBI chairman, the Gazette notification of the Bye-Laws after the final approval is expected to be completed by May 2000.
  • Trading is expected to start by mid-June 2000.

    
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