In this regard, members are requested to comply with the following requirement:

Size: px

Start display at page:

Download "In this regard, members are requested to comply with the following requirement:"

Allan Kelly
5 years ago
Views:

1 NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED Circular to all trading and clearing members of the Exchange Circular No. : NCDEX/MEMBERSHIP-003/2018/094 Date : April 12, 2018 Subject : Submission of Half Yearly Net Worth as on 31 st March, 2018 for the Financial Year Attention of members is drawn to the Exchange Circular No. NCDEX/COMPLIANCE-16/2016/239 dated September 27, 2016 on Enhanced Supervision of Stock Brokers/Depository Participants and In this regard, members are requested to comply with the following requirement: 1. Half Yearly Net Certificate along with Statement of Computation of Net as on March 31, 2018 based on unaudited financial statement should be submitted to the Exchange on or before May 31, 2018 as specified in point (a) of para (Monitoring Criteria for Stock Brokers) of aforesaid Exchange circular dated September 27, Members are requested to upload all the above details as per prescribed format in an electronic format through NCFE Portal. No physical copies should be submitted to the Exchange. 3. Computation of Net Worth should be as per L. C. Gupta Method only. 4. Formats for submission of Net (Net Certificate & Computation of Net ) and Actions for Non Compliance are provided in Annexure I and II respectively. Members are advised to take note of the above and ensure due compliance on or before May 31, For and on behalf of National Commodity & Derivatives Exchange Limited Seema Nayak Executive Vice President Encl: Annexure I & Annexure II For further information / clarifications, please contact 1. Customer Service Group on toll free number: Customer Service Group by to : askus@ncdex.com 1 / 6

2 Annexure I Formats for submission of net : Net Worth Certificate (Annexure C-1) (To be provided on the Letterhead of the certifying Chartered Accountant) Certificate dated submitted by ( T M I D ) to NCDEX CERTIFICATE This is to certify that the Net of M/s./Mr./Ms. as on as per the statement of computation of even date annexed to this report is Rs. only (Rupees (in words) ) calculated as per L.C. Gupta method of Annexure C 1A. We further certify that: The computation of net based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction. The computation of net is in accordance with method of computation prescribed by Dr. L. C. Gupta method committee report. We hereby confirm that we are not the related party to the aforesaid entity. Place: For (Name of Chartered Accountant Firm) Date: Name of the Partner/Proprietor Chartered Accountant CA Stamp and Membership Number 2 / 6

3 (To be provided on the Letterhead of the certifying Chartered Accountant) Statement of Computation of Net (Annexure C-1A) Computation of Net as on prescribed by Dr. L.C. Gupta Committee is as follows: A. Capital B. Free Reserves C. Less Non-allowable assets viz., (a) Fixed Assets (b) Pledged Securities (c) Member s card (d) Non-allowable securities (unlisted securities) (e) Bad deliveries (f) Doubtful Debts and Advances* (g) Prepaid expenses, losses (h) Intangible Assets (i) 30% of Marketable securities D. Total Net Worth(A+B-C) *Explanation: Includes debts/advances overdue for more than three months or given to associates For (Name of Chartered Accountant Firm) Place: Date: Name of Partner/Proprietor Chartered Accountant CA stamp and Membership Number 3 / 6

4 Annexure II - Action for Non-Compliance: 1. Non Submission of half yearly Net All members are required to ensure that they submit net certificate along with computation of net based on unaudited financial statement as on March 31, 2018 in the prescribed formats, as applicable, on or before May 31, 2018 in order to avoid any late / non-submission charges. Further, non-submission of any of the documents or submission of documents in other than the prescribed format would be construed as non-submission. In terms of Exchange circular no NCDEX/COMPLIANCE-020/2017/285 dated October 31, 2017 on revised penalty structure, Non-submission charges would be levied as under: Charges of Rs. 200/- per day for 1 st Month after the due date Charges of Rs. 500/- per day for 2 nd month after the due date till the date of submission or disablement 2 weeks notice shall be given to the member after 2 nd month from the due date, subsequent to which the member shall be in all segments by the Exchange The disablement notice issued to the Member shall be shared with all the Exchanges for information. 2. Minimum Net Requirement : All the members of the Exchange are required to maintain Net at all points of time as prescribed by the Exchange. In case the Net is below the prescribed minimum, the Exchange would initiate appropriate disciplinary action including the following. Matrix for blocking Base capital/additional Base Capital: Type of Membership Prescribed Net Shortfall of Net Action by the Exchange Trading For Corporate: Members Rs. 25 Lakh prescribed limit For other than corporate: Rs. 10 Lakh 4 / 6

5 Type of Prescribed Net Shortfall of Net Action by the Exchange Membership Rs.1 crore but not less Capital up to Rs. 12,50,000 than Rs. 90 lakh shall be blocked and will not Trading Cum Rs. 90 lakh but not Capital up to Rs. 25,00,000 Clearing Members Rs. 1 Crore less than Rs. 75 lakh shall be blocked and will not Rs. 75 lakh but not Capital up to Rs. 50,00,000 less than Rs. 50 lakh shall be blocked and will not be Rs. 50 lakh Rs. 3 crore but not less Capital up to Rs. 17,50,000 than Rs crore shall be blocked and not be Strategic Trading Cum Rs crore but not Capital up to Rs. 35,00,000 Clearing Members* Rs. 3 Crore less than Rs crore shall be blocked and will not be Rs crore but not Capital up to Rs. 52,50,000 less than Rs. 1.5 crore shall be blocked and will not be Rs. 1.5 crore Professional Clearing Members* Rs. 10 Crore Rs. 10 crore but not less than Rs. 9 crore Capital up to Rs. 12,50,000 will be blocked and will not be 5 / 6

6 Type of Prescribed Net Shortfall of Net Action by the Exchange Membership Rs. 9 crore but not less Capital up to Rs. 25,00,000 will than Rs. 7.5 crore be blocked and will not be Rs. 7.5 crore but not Capital up to Rs. 50,00,000 will less than Rs. 5 crore be blocked and will not be Rs. 5 crore Note: In case of STCMs/PCMs, if net falls below prescribed levels, other than blocking of Base capital/additional Base Capital, STCMs/PCMs will be allowed 3 months time to increase their net (under intimation to the TMs affiliated with such STCM/PCM) - failing which, they will not be allowed to clear trades of the TMs affiliated to them. TMs associated with such STCM/PCM will make alternative clearing arrangements during this three month period. The Exchange will also not allow any new TMs to be affiliate with such STCM/PCM 6 / 6

With regard to the above, the DPG identification norms are given below:

With regard to the above, the DPG identification norms are given below: NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED Circular to all trading and clearing members of the Exchange Circular No. : NCDEX/MEMBERSHIP-007/2018/139 Date : June 01, 2018 Subject : Revised norms