Ref.SE/3117 To, The Presidents and Executive Directors Dear Sir, Registration of brokers As you would know, under Section 12(1) of the Securities & Exchange Board of India Act 1992, no stock broker shall buy or sell or deal in securities except under, and in accordance with the conditions of a certificate of registration obtained from the Securities & Exchange Board of India (SEBI) in accordance with the Rules and Regulations made thereunder. In case of a present member stock broker of recognised Stock Exchanges, he may continue to do his present business, if he has made an application for such registration within a period of 3 months from the establishment of the Board, till the disposal of such application. The Board was constituted on February 21, 1992 and hence, in terms of the SEBI Act, the present member stock brokers of the Stock Exchanges will have to submit their application through the Stock Exchanges (where they are members) to SEBI by May 21, 1992. For the above purpose, we enclose an application form for registration as a Stock Broker with SEBI. You are requested to arrange to take copies of the application forms and supply them to the member-brokers of your Exchange and advise them to fill up the same in all details, enclosing supporting documents and registration fees by cheque/demand drafts favouring SEBI as prescribed in Schedule II (enclosed) and submit them to you by May 7, 1992. The Exchange should carry out a scrutiny of applications received from the member stock brokers to ensure that all the required information has been furnished by the member stock brokers. After the scrutiny, the Stock Exchange should incorporate its recommendations and comments on the applications as envisaged therein and forward the same to SEBI alongwith the cheques/demand drafts given by member stock brokers. All such applications received by the Stock Exchanges and duly scrutinised by them, may be so forwarded as to reach SEBI by May 20, 1992 to enable it to process the same as required under the Act. Kindly ensure that the above time schedule for submission of applications by the member stock brokers and scrutiny thereof by your Exchange is strictly adhered to. Please acknowledge receipt of the letter. Yours faithfully, U.C. DIKsh*t Encl: As above SCHEDULE - I APPLICATION FOR REGISTRATION WITH SEBI AS A STOCK BROKER 1. Name of applicant Member-Broker: 2. Trade name of member, firm, corporate body, institution: 3. Form of Organisation - Sole proprietorship, partnership, corporate body, financial institution. Please give name of proprietor, all partners, directors. 4. Educational Qualification of proprietor, partners, directors, etc.:
April 10, 1992
of all the recognised Stock Exchanges.
sd/-
(ADVISER)
| NAME | STATUS | QUALIFICATIONS |
5. Name of Stock Exchange of which the applicant is a stock broker: 6. Date of acquiring membership: 7. Mode of acquiring membership (whether selected by the Exchange, transfer from relatives, or membership rights bought
from the market, if bought from the market the purchase price of card may be indicated).
8. In case of new members please give details of past business, before the date of acquiring membership of the stock exchange.
9. Whether member of more than one stock exchange/s? If so, please give name of the stock exchange/s and code/s number/s allotted.
10. Number of membership cards of stock exchanges in the names of family members/close relatives.
| NAME OF MEMBER | CODE NO. | RELATION-SHIP | STOCK EXCHANGE | TURNOVER (YEAR) |
11. Infrastructural arrangements :- indicate fax, telex, phones, number of offices and residential numbers. Also indicate the number of employees, no. of authorised assistants, number of sub-brokers - for primary and secondary markets. Office Address Telex No. Phone No. Fax No. 12. Number of branch offices and their location with phones, telex and fax numbers. Address of Branch Off. Phone No. Tlx.No. Fax No. Contact Person a. Net worth (Rs. Lakhs) : Also enclose certified copies of the latest audited Balance Sheet and Profit & Loss Account). NOTE: In case of partnership or proprietary concerns, please indicate capital minus drawings, certified by the Chartered Accountant. b. Liquid Assets like cash, bank balance and marketable securities (Rs. lakhs) as on latest date. 13. Any disciplinary action taken by the Exchange against the member broker during the last three years like imposition of fines, suspension from trading, etc. Nature of irregularity Action taken by the Exchange 14. Whether the member broker has been a office bearer/member of Council of Management/Governing Board of the Exchange during any of the last 3 years. Please give details. 15. Whether the stock broker has been a member of any committee of the stock exchange during any of the last three years. Please give details. 16. Number of pending arbitration cases filed against the member broker. Name of Complainant investor / member-broker Brief nature of dispute Progress of Arbitration 17. Details of court cases pending against the member stock broker, if any. 18. Number of complaints forwarded by stock exchange or SEBI/Government which are yet to be resolved. Name of Complainant Nature of Complaint Reason for delay in resolving the complaint 19. (a) Volume of Turnover during the year 1991-92 (Rs. lakhs) (as per records maintained under the bye-laws of the stock exchange).
Residential Phone of Proprietor, Partner & Directors
Number of employees No. of authorised assistants
No. of sub-broker - Secondary - Primarya. Paid up Capital
b. Free Reserves (excluding revaluation reserves)
c. Total (a+b).
a. Out of (a) above turnover on account of jobbing.
b. Out of (a) above:i. turnover in his own account :c.Average daily turnover during the year (Rs. lakhs):
ii. turnover on behalf of individual investors :
iii. turnover on behalf of corporate investors :
iv. turnover on behalf of investment institutions/mutual funds.
d. Volume of Turnover in specified and non-specified shares:
e. Delivery of securities taken during the year (Rs. Cr.):
f. Delivery of securities given during the year (Rs. Cr.):
20. Main activities in which the stock broker is involved (Please tick mark):
(a) Secondary Market
a. Primary Market
b. Investment advice
c. Portfolio Management
d. Underwriting
e. Issue management
f. Whether the person is authorised as merchant banker by SEBI Market Maker
g. Any other, please specify.
21. Details of underwriting during 1991-92:
a. Number of issues underwritten:
b. Amount underwritten:
c. Any Devolvement? If yes, the names of issues, and how the liability was met.
22. Books maintained by the member broker (Please give names):
23. Any dues payable to the stock exchange?
24. Any suspension / default proceedings pending against the member broker.
25. Any newsletter being published by the stock broker (enclose a copy).
I/We certify that the information given in this application form is true to the best of my/our knowledge and belief. I/we shall promptly notify SEBI of any changes in the information during the period that my registration is being considered and if registration is accepted, also thereafter. I/we understand that any findings of false information at any stage of time, my/our registration shall be liable to cancellation.
I/We shall abide by the Code of Conduct, rules, regulations, guidelines and directives issued by SEBI from time to time.
Signatures:
Date:
Recommendation of the Stock Exchange:
This is to certify that __ is a member broker of this exchange since _ and no disciplinary action is pending against the member. (If pending, please specify the nature of irregularity and likely action against member).
Application is recommended/not recommended for registration by SEBI.
Authorised Signatory.
Signature
__ Stock Exchange
SCHEDULE - II
I. FEES TO BE PAID BY BODY CORPORATE APPLICANTS:
REGISTRATION ANNUAL
FEES FEES
RS.10 LAKHS RS.10,000
II. FEES TO BE PAID BY APPLICANTS OTHER THAN BODY CORPORATE APPLICANTS :
REGISTRATION ANNUAL
FEES FEES
(RS.) (RS.)
CATEGORY A 5 LAKHS 10,000
CATEGORY B 3 LAKHS 5,000
CATEGORY C 1 LAKH 3,000
CATEGORY A : Stock Brokers who are or will be members of Bombay, Delhi and Calcutta stock exchange.
CATEGORY B : Stock Brokers who are or will be members of Bangalore, Cochin, Madras and Ahmedabad stock exchange.
CATEGORY C : Stock Brokers who are or will be members of other stock exchanges.
Note: Registration fees may be paid in two equal instalments - one along with the application for registration and second on intimation of approval of registration.
FOR STOCK EXCHANGES ONLY
Checklist for examining the applications for registration with SEBI as stock brokers of recognised stock exchanges
The following points will be taken into consideration while examining the application form of a stock broker for registration with SEBI. An application may be rejected if there are many adverse points against the stock broker.
1. Completeness of application forms in all respects alongwith enclosures.
2. Cheque/draft for Registration fees enclosed.
3. Liquid Assets like cash, bank balance and marketable securities (Rs. lakhs) as on latest date as certified by a Chartered Accountant.
4. Disciplinary action taken by the Exchange against the member broker during the last three years like imposition of fines, suspension from trading, etc.
5. Nature of irregularity and action taken by the Exchange.
6. Number of pending arbitration cases filed against the member broker by the investors and other stock brokers.
7. Nature of disputes and progress of arbitration cases.
8. Details of court cases pending against the stock broker. Any criminal case?
9. Number of complaints forwarded by stock exchange or SEBI/Government which are yet to be resolved.
10. Volume of Turnover during the year 1991-92. (It will indicate whether the stock broker is inactive).
11. Any underwriting Devolvement?
12. Any dues payable to the clearing house or stock exchange?
13. Any suspension/default proceedings/disciplinary action pending against the member broker.
14. Recommendation of the stock exchange.
