Sr. No. 1. 2. 3. 4. 5. 6.

Particulars About Us Eligibility Criteria Other Terms & Conditions Selection & Admission Process SEBI Registration Process Payments / Deposits a b c d e f Earnest Money Admission fees Base Minimum Capital (BMC) Settlement Guarantee Fund (SGF) Annual Fees SEBI Registration Fees

Page No. 1 2 5 7 8 8 8 8 8 9 9 9 9

7. 8.

Investment Cost Prescribed Application Formats &Checklist

1. ABOUT US
Madhya Pradesh Stock Exchange Limited (MPSEL) incorporated in 1919 as an association of persons and is in the 90th year of its operation. MPSEL is one of the 8 permanently recognized Stock Exchanges in the country. MPSEL under Corporatization and Demutualization Scheme 2005 was converted into a limited company and was Demutualized, with strategic shareholders taking up 51% stake. MPSEL has 185 Trading Members and 315 listed companies. MPSEL is in process of reviving its Trading Platform for its Trading Members and Listed Companies in association with other regional stock exchanges. MPSEL follows and adheres to all the Corporate Governance Standards as specified by SEBI / RBI and other regulatory authorities from time to time and is committed to ensure establishment of a free and fair Corporate Governance mechanism. Governing Board of MPSEL consists of professional and experienced persons from diversified sectors of economy. Madhya Pradesh Stock Exchange Limited in its endeavor to fulfill the obligations and responsibilities towards creating investors awareness, financial literacy amongst the investors, general public, self employed professionals has promoted MPSE Institute of Knowledge Management (MIKM), an Institute for imparting training on various aspects of the capital market. MPSEL has a wholly-owned subsidiary, MPSE Securities Limited (MPSESL), which has taken up corporate membership of the National Stock Exchange of India Ltd. (NSE) in both the Capital Market and Futures & Options segments and The Stock Exchange, Mumbai (BSE) in the Equity segment. MPSESL is one of the biggest broking house in Madhya Pradesh facilitating NSE, BSE & CDSL operations. MPSESL has planned a pan India presence and has started regional offices in five cities outside Madhya Pradesh. MPSESL provides members of the exchange with the best technology and platform comparable with any leading brokerage house in the country. MPSESL has more than 92 terminals located in more than 20 cities.

2. ELIGIBILITY CRITERIA
The following are eligible to become Trading Member of MPSE as per Bye-laws of the Exchange subject to regulatory norms and provisions of SEBI:1. 2. Individuals Corporates (Corporations, Bodies Corporate, Companies or Institutions set up for providing financial services).

INDIVIDUAL
An Individual shall be eligible to be admitted as a Trading Member of the Exchange provided: i. He/she undertakes to comply with such other financial requirements and norms as may be specified by the Securities and Exchange Board of India for the registration of such entity under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (16 of 1992); He/she is not disqualified for being Members of any of the recognised Stock Exchange under clause (1) of rule 8 [except sub-clauses (b) and (f) thereof] or clause (3) of rule 8 [except sub-clauses (a) and (f) thereof] of the Securities Contracts (Regulation) Rules,1957; and

ii.

iii. He/she had not held the office(s) with/in any firm/company which is/had been a Member of any of the recognised Stock Exchange and had been declared defaulter or expelled by that Stock Exchange. Age Status Education Networth Minimum 21 years. Citizen of India Graduate 4,00,000/- (Rs. Four Lacs Only)

Experience Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial services or treasury, broker, sub broker, authorized agent or authorized clerk or authorized representative or remisier or apprentice to a member of Recognized Stock exchange, dealer, jobber, market maker or in any other manner in dealing in securities or clearing and settlement thereof. The above requirements stand waived for Chartered Accountants, Company Secretaries, ICWA, CFA, MBA and Members of other Stock Exchange(s) 2

CORPORATE
A Company, as defined in the Companies Act, 1956, shall be eligible to be admitted as a Trading Member of the Exchange provided: i. it undertakes to comply with such other financial requirements and norms as may be specified by the Securities and Exchange Board of India for the registration of such company under sub- section (1) of section 12 of the Securities and Exchange Board of India Act, 1992; the directors of such company are not disqualified for being members of a stock exchange under clause (1) of rule 8 [except sub-clauses (b) and (f) thereof] or clause (3) of rule 8 [except sub-clauses (a) and (f) thereof] of the Securities Contracts (Regulation) Rules, 1957; and

ii.

iii. the directors of the company had not held the offices of the directors in any company which is/ had been a member of any of the recognised Stock Exchange and had been declared defaulter or expelled by that Stock Exchange. Age of Designated Directors Status Minimum Paid Capital Networth Designated Directors Education Experience of Designated Directors Minimum 21 years Company registered under the Indian Companies Act, 1956. Rs. 10,00,000/- (Rs. Ten Lacs Only) Rs. 10,00,000/- (Rs. Ten Lacs Only) At least Two directors should be Designated Directors who would be managing the day to day trading operations. Each of the Designated Director should be at least a Graduate or equivalent qualification. Should have a minimum of 2 years experience in an activity related to dealing in securities or as portfolio manager or as investment consultant or as a merchant banker or in financial services or treasury, broker, sub broker, authorized agent or authorized clerk or authorized representative or remisier or apprentice to a member of Recognized Stock exchange, dealer, jobber, market maker or in any other manner in dealing in securities or clearing and settlement thereof. The above requirements stand waived for Chartered Accountants, Company Secretaries, ICWA, CFA, MBA and Members of other Stock Exchange(s). Dominant Promoter Group Dominant promoter group should be identified as per norms of the Exchange and/or SEBI, the regulatory body.

WHO CANNOT BECOME A MEMBER?

Further to the capital and networth requirements, no entity shall be admitted as a member if

INDIVIDUAL
a) He/she has been adjudged bankrupt or a receiving order in bankruptcy has been made against him/her or he/she has been proved to be insolvent even though he/she has obtained his/her final discharge; He/she has compounded with his/her creditors for less than full discharge of debts; He/she has been convicted of an offence involving fraud or dishonesty; He/she is engaged as principal or employee in any business other than that of securities except as a broker or agent not involving any personal financial liability or for providing merchant banking, underwriting or corporate or investment advisory services, unless he/she undertakes to severe his/her connection with such business on admission; He/she has been at any time expelled or declared a defaulter by any other stock exchange; He/she has for the time being been debarred from trading in securities by Regulatory Authorities like SEBI, RBI, etc. However, decision of the Governing Board in this regard will be final; He/she has been previously refused admission to trading membership unless a period of one year has elapsed since the date of such refusal/rejection; No Disciplinary action / conviction is pending in any Exchange against the applicant; He/she incurs such disqualification under the provisions of the Securities Contract (Regulations) Act, 1956 or Rules made thereunder so as to disentitle such persons from seeking membership of a stock exchange;

b) c) d)

e) f)

g) h) i)

Provided further that the eligibility conditions and/or disabilities and/or liabilities in relation to Individual trading members would apply to the corporate representative(s) of the Individual trading members as nominated/appointed to act, engage and deal on the Exchange on behalf of the Individual trading members.

CORPORATES
a) b) It has compounded with its creditors for less than full discharge of debts; It is engaged in any business otherthan that of securities except as a broker or agent not involving any financial liability or for providing merchant banking, underwriting or corporate or investment advisory services, unless it undertakes through its authorized representative to severe its connection with such business on admission; 4

c) d)

It has been at any time expelled or declared a defaulter by any other stock exchange; It has for the time being been debarred from trading in securities by any Regulatory Authorities like SEBI, RBI, etc. however, the decision of the Governing Board in this regard will be final; It has been previously refused admission to trading membership unless a period of one year has elapsed since the date of such refusal/rejection; No Disciplinary action / conviction is pending in any Exchange; It incurs such disqualification under the provisions of the Securities Contract (Regulations) Act, 1956 or Rules made there-under so as to disentitle from seeking membership of a stock exchange; The applicant fails to furnish its Memorandum and Articles of Association and/or constitution and/or Rules & Regulations and Bye-laws, if any, along with Board Resolution(s) electing to be a Corporate Trading Member and appointing named Director(s) / corporate representative(s) to act, engage and deal on behalf of such TM on the Exchange, andalso to furnish the specimen signature of such Director(s) / corporate representative(s). It has committed an act of insolvency, or an act for which such Body Corporate is liable to be wound up under the provisions of law nor has a Provisional Liquidator or Receiver or Official Liquidator been appointed against such Body Corporate. If the aforementioned events happen, the Governing Board of MPSE shall suspend the right of the corporate TM to trade on the Exchange either directly or indirectly or through the named corporate representative(s)/ Director(s). The eligibility conditions and/or disabilities and/or liabilities in relation to Corporate Trading Members would also apply to the Director(s)/corporate representative(s) of the Body Corporate as nominated/appointed to act, engage and deal on the Exchange on behalf of the Corporate Trading Member. Directors/Designated directors/ Compliance Officer of the applicant company have disqualification(s) as mentioned above for Individuals. Other Terms and Conditions

e) f) g)

h)

i)

j)

k) 3.

The applicant must note and adhere to the following terms and conditions: 1. The Trading Member has only Trading Right and there will be no shareholders/ ownership right of MPSEL. The TM is non-transferrable and can only be surrendered to MPSEL. The applications should be in the prescribed formats and complete in all respects.

2. 3.

4.

On admission of membership of the Exchange the applicant will have to severe connection with business, if any, other than that of securities. The Information Charter-cum-Application Form as well as the other material (including the Terms and Conditions and salient features of the Trading Membership) can be obtained from the Membership Department of the Exchange or through post by sending a self addressed stamped envelope to Membership Services Department, Madhya Pradesh Stock Exchange Limited, 201, Palika Plaza, Phase II, MTH Compound, Indore 452 001. The application form in the prescribed format, complete in all respects should be accompanied by a Demand Draft/Pay Order/Cheque for Rs. 1,00,000/- (Rupees One Lakh only) drawn in favor of Madhya Pradesh Stock Exchange Limited payable at Indore towards earnest money deposit on which no interest will be payable by MPSEL, shall be submitted and it cannot be withdrawn by the Applicant. Applications can be made by Individuals and Corporate who are eligible to become a Trading Member of MPSEL in accordance with the Bye-Laws of MPSEL and Rules & Regulations of SEBI, and as per terms and conditions as decided by the Governing Board of MPSEL from time to time. The successful applicants whose offers are accepted by MPSEL will be required to pay the balance amount of Deposit, Admission Fee, Annual Fee & SEBI Fee alongwith the required documents for SEBI Registration within fifteen days from the date of receipt of the 'Letter of Acceptance of Offer' by applicant for TM of MPSEL. MPSE will be entitled, at its sole discretion, to forfeit the Earnest Money Deposit, if the successful Applicant fails to pay the balance amount of Deposit, Admission Fee, Annual Fee & SEBI Fee or to complete the necessary formalities for SEBI Registration to the satisfaction of MPSE within the stipulated period of 15 days.

5.

6.

7.

8.

9.

10. The deposit of the Trading Members will be subject to a lock-in-period of Two years. Any Trading Member desirous to withdraw / surrender his Deposit-based Trading Membership after such lock in period of Two years or at any point thereafter, will have to give a six months prior notice to that effect to MPSE. The Deposit amount, BMC and any other amount (payable/receivable) will be refunded without any interest to the said member within 3 months from receipt of NOC from SEBI. 11. The successful applicant will have to pay the following amounts/deposits to MPSEL [including the Earnest Money of Rs. 1,00,000/- (Rupees One Lakh only) already paid ]

Sr. No. 1. 2. 3. 4. 5. 6.

Description Base Minimum Capital (Refundable) Deposit Amount (Interest free & refundable) Admission Fees (non-refundable)

Amount 1,00,000/1,00,000/2,00,000/-

Initial Contribution Towards SGF Non refundable 5,000/Annual Fees SEBI Registration Fees (Initial) 2,250/5,000/-

Plus Service Tax (As applicable)

12. The condition for educational qualification may be relaxed for the suitable candidates at sole discretion of Governing Board of MPSE. 13. MPSEL will be entitled to accept the applications for Trading Membership on such parameters and criteria as may be decided by MPSEL from time to time. 14. MPSEL reserves the right to Reject any application without assigning any reason. 15. No change in shareholders, directors, designated directors, authorized representatives, registered office, etc. of corporate TM will be made without prior written permission from MPSEL. Subsequently, complete set of papers/documents must be submitted to MPSEL. 16. The Trading Rights would be awarded only on completion of all stipulated procedures & formalities as specified by MPSEL & SEBI. 17. The decision of MPSEL will be final and binding in all respects.

4. SELECTION & ADMISSION PROCESS

The applications will be scrutinised by the Membership Selection Committee (MSC) of MPSEL. MSC will shortlist the name of applicant(s) whose application(s) is/are complete in all respect & will conduct interview of the shortlisted applicants with prior notice thereof. The successful candidates will be issued Letter of Acceptance. The successful candidates will be required to pay balance amount of Deposit, Annual Fee, Admission Fee, SEBI Registration Fees and complete other formalities for SEBI Registration within the stipulated period of 15 days.

5. SEBI REGISTRATION PROCESS

After scrutiny of the documents submitted by candidate for SEBI Registration, the same will be sent to SEBI for Registration of candidate as TM alongwith the recommendation of MPSEL.

6. PAYMENTS / DEPOSITS
The details of Payments/Deposits are as under: a. Earnest Money/Deposit

An applicant is required to pay Earnest Money of Rs.1,00,000/- (Rupees One Lakh only) alongwith the Application Form through cheque/pay order/demand draft favouring 'Madhya Pradesh Stock Exchange Ltd.' towards interest free deposit. Earnest money is to be adjusted against the Deposit Amount of Rs. 1,00,000/- (Rupees One Lacs only). MPSEL will be entitled, at its sole discretion, to forfeit the Earnest Money Deposit, if the successful applicant fails to pay, Admission Fee, Annual Fee & SEBI Fee alongwith the required documents for SEBI Registration within 15 days from the date of receipt of the 'Letter of Acceptance of Offer' by applicant for TM of MPSEL. b. Admission Fees The Successful Candidate will be required to deposit Admission Fee of Rs.2,00,000/(Rupees Two lakh only) through cheque/pay order/demand draft favouring 'Madhya Pradesh Stock Exchange Ltd. within 15 days from the date of receipt of the 'Letter of Acceptance of Offer' by applicant for TM of MPSEL. c. Base Minimum Capital (BMC) The Trading Member is required to deposit Base Minimum Capital (BMC) of Rs.1,00,000/(Rupees One Lakh only) with the Exchange. He will be required to fulfill the capital adequacy norms as specified by SEBI from time to time. Title Cash Fixed Deposit Fixed Deposit or Bank Guarantee or Eligible Securities (with 30% Margin/haircut) TOTAL 100% Rs. 1,00,000/50% Rs. 50,000/Percentage contribution Minimum 25% Minimum 25% Amount Rs. 25,000/Rs. 25,000/-

BMC will be deposited with MPSE after receipt of SEBI Registration Certificate. 8

d.

Settlement Guarantee Fund (SGF)

The Trading Member will be required to deposit Rs.5,000/- (Rupees Five Thousand only) + Service Tax (as applicable) as initial contribution towards SGF to trade on Platform of MPSE after receipt of SEBI Registration Certificate. This amount is non-refundable. e. Annual Fee

The successful candidate will be required to pay Rs.2,250/- (Rupees Two thousand only) + Service tax (Tax as applicable) towards Annual Fee of MPSE within 15 days from the date of receipt of the letter of acceptance of offer by applicant. f. SEBI Registration Fees The successful candidate will be required to submit Rs.5,000/- (Rupees Five thousand only) towards SEBI Registration Fees through demand draft favouring 'SEBI' payable at Mumbai alongwith the SEBI Registration documents. The SEBI Fees will be payable in future as per Schedule IIIA of SEBI (Stock Brokers & Sub- Brokers) Regulations, 1992 on the basis of Turnover of a Trading Member.

7.

Investment Cost

The Investment to be made by the Trading Member is as under :

Sr. No. 1 2 3 4 5 6 Description Deposit (Interest free & refundable) Admission Fees (Non-refundable) SEBI Fees Annual subscription/Fee Base Minimum Capital (Refundable) Amount 1,00,000 (Rs.) Remarks

Rs. 1.00 Lakh as Earnest Money with Application

2,00,000* 5,000 2,250* 1,00,000

At the time of Admission (within 15 days from date of receipt of letter of acceptance) After receipt of SEBI Registration

Initial Contribution to Settlement Guarantee Fund (Non-refundable 5,000* Total 4,12,250

*Plus Service Tax (As Applicable)

MPSE Securities Ltd.

MPSE Securities Limited (MPSESL), is a 100% subsidiary of Madhya Pradesh Stock Exchange. MPSESL is a brokering arm of MP Stock Exchange. Only members of Madhya Pradesh Stock Exchange Limited (MPSEL) are eligible to become sub-brokers of MPSE Securities Limited. .1. THE COMPANY MPSE Securities Limited incorporated in the year 2002 is corporate member of National Stock Exchange Limited and Bombay Stock Exchange Limited. MPSESL is a depository participant of CDSL. MPSESL with more than 7500 broking accounts, 7000 demat accounts, 90 trading work stations is one of the biggest broking house of Central India. MPSESL offers trading terminals for cash and derivative segments. 2. BROKERAGE Lowest brokerage structure as compared to any other broking house. 3. SURVEILLANCE SYSTEM Surveillance system which ensures the highest risk management even in worse scenario of January 2008. 4. CONNECTIVITY Connectivity modes at par with leading brokerage houses in the industry like PRI/BRI, Internet Broad Band, Lease line, VSAT, establishment of locational hub etc. 5. FRONT-END SOFTWARE Front-end software ODIN which is having market share of more than 75% and provide the best connectivity. 6. INTERNET BASED TRADING Internet based trading (IBT) for all scrips traded on National Stock Exchange. 7. MULTI-CITY OPERATIONS Multi city operations which will provide opportunity to brokers to set their office any where in India. MPSESL has already set up Regional Offices in five centers and has trading terminals in more than 20 cities.

10

8.

BACK OFFICE SOFTWARE Back office software Shilpi which enjoys good market credibility and acceptability in the industry and running successfully for last five years.

9.

KNOWLEDGE SUPPORT MPSE Institute of Knowledge Management (MIKM) an initiative of Madhya Pradesh Stock Exchange provides short and medium term courses which includes Basics in Capital Market, Technical Analysis, Fundamental Analysis, Mutual Funds etc. bringing knowledge support to MPSESL. Training modules for brokers and staff members of brokers to ensure smooth working, timely pay-in pay-out, effective delivery management, handling of back office software.

10. TECHNICAL AND FUNDAMENTAL RESEARCH MPSESL has set up a Technical Analysis wing which provides intraday trading strategies, weekly, monthly calls under best of technical knowledge. Fundamental Analysis is available for all companies through best of the software in the industry. 11. RELATIONSHIP MANAGER Relationship manager takes care of specific needs of broker under single window. 12. IPO DESK IPO desk will provide facility of IPO bidding, sub broker registration, fundamental analysis etc. 13. MUTUAL FUNDS Mutual funds marketing is being started as a support services and will include training, sub broker registration, fortnightly update, all this with an intention to ensure that all members of MPSEL work as mutual fund advisor/broker. 14. Future & Option MPSESL works on a very lucretive brokerage structure in Future & Option segment at National Stock Exchange Derivative Segment. In fact MPSESL was the first Regional Stock Exchanges Subsidiary to activate Future & Option business under revised norms of SEBI. 15. Future Plans MPSESL will be activating currency derivative segment in August 2009.

11

Specimen application form for making the offer (on letterhead of the individual/ corporate entity along with the earnest money of Rs. 1 Lakh)

The Executive Director, Madhya Pradesh Stock Exchange Ltd., Indore Sir, Sub: " Offer for Trading Membership " Please acquaint the Board of Directors of Madhya Pradesh Stock Exchange Ltd. (MPSE) that I/We am/are desirous of being admitted as a member with only trading rights on the " Madhya Pradesh Stock Exchange Ltd." on the terms and subject in all respects to the Rules, Bye-laws & Regulations of the Exchange, which now are or hereafter may be, for the time being in force. I/We have read & understood the aforesaid Rules. I/We, the applicant company am/are agreeable to the selection and admission procedure, and further agree that the discretion of the Board of Directors of Madhya Pradesh Stock Exchange Ltd. shall be final and binding upon me/us. Yours faithfully, Name: Signature: Date: Encl: Rs.1 Lacs DD or P.O. or cheque payable at par

12

CHECK LIST FOR CORPORATES APPLYING FOR TRADING MEMBERSHIP

Note: Please request you to submit the forms in the serial number as mentioned in the checklist for faster processing of the application. *** THESE DOCUMENTS ARE TO BE SUBMITTED ONLY AFTER APPLICANT RECEIVES THE LETTER OF ACCEPTANCE OF OFFER. Documents Remarks Sr. Documents to be given submitted No. 1 Appendix A II ( format to be provided after acceptance of offer) 2 Auditors Certificate (format to be provided after acceptance of offer) 3 Annexure II (Details of the Company) (format to be provided after acceptance of offer) 4 Memorandum and Articles of Association * 5 Prospectus of Statement in lieu of prospectus * 6 Director Report, Auditors report, Annual Accounts (For the Last Three years) * 7 Returns filed Assessment Orders /Statement of Income / wealth (For the last three years) * 8 Short History of the company and its activities on letter head of company signed by directors. 9 Capital Structure * (Authorised capital, Issued capital and subscribed capital (On the members letter head) 10 Shareholding Pattern in respect of each shares. (Sr. No. | Name of the shareholder Percentage of Holding and Amount Holding) * (In case a member has a corporate entity as its shareholders then the shareholding pattern of that corporate entity would required to be submitted till the last individual shareholder is identified) 11 Board resolution aut horising the direct ors to apply for membership. 12 Net worth Certificate (certified by C.A.) & statement of calculation as per the annexure attached. 13 Balance Sheet (Including All schedules) in concurrent to the Net worth statement submitted. (Certified by CA) 14 NOC / Status report from the Stock Exchange (s) where an applicant company is a member (s). 15 At least one reference from the banker. 16 Recommendation of two existing members on recommending member's letter head. 17 Details of all the Directors of the applicant company [Name, Qualification, Address, brief market experience in years, shareholding in the company] on letterhead signed by directors. 18 Certified Pan card copy. *Documents pertaining to the Company duly certifie d by a chartered accountant as true & correct 13

Documents to be submitted by each Designated Directors *** THESE DOCUMENTS ARE TO BE SUBMITTED ONLY AFTER APPLICANT RECEIVES THE LETTER OF ACCEPTANCE OF OFFER. Name of the Designated Director Sr. No. 1. 2. 3. 4. 5. 6. Documents to be given Annexure I(format to be provided after acceptance of offer) Board Resolution Authorising appointment of designated director A brief Bio Data of the Designated Director (self signed on plain paper/on letter head of individual director) Certificates of educational Qualifications Certificates relating to the Experience in the Capital market Balance Sheet and P & L Account for last three years AND / OR Assessment orders &/or statement of Income / wealth &/or copy of Income tax returns for the last three assessment years (Certified by a CA) If the Designated Director is a member of any other Stock Exchange in his individual capacity then the Designated Director has to submit NOC/Status report of that particular Exchange also. If an associate concern/entity is a member of any other stock Exchange then the NOC / Status report of that particular exchange is also to be submitted At least one reference from the banker. Certified Pan Card copy Documents submitted Remarks

7.

8. 9.

10. A certificate to be submitted on the letterhead of C.A. as per following format: This is to certify that <name of proposed designated director/s> of <name of the applicant company> possesses a minimum of 2 years capital market experience as required under the provisions contained in Rule 8 sub-rule 4A sub-clause (v) of Securities Contract (Regulation) Rules, 1957. Signature. with Rubber Stamp & Membership No. Place : Date : 11. Copy of Form No. 29 and 32 filed with ROC. 12. Certificate of BCFM/NCFM Exam conducted by MPSE/NSE 14

Check List for Individual Membership

Note: Please request you to submit the forms in the serial number as mentioned in the checklist for faster processing of the application *** THESE DOCUMENTS ARE TO BE SUBMITTED ONLY AFTER APPLICANT RECEIVES THE LETTER OF ACCEPTANCE OF OFFER.

1.

Age proof (Individual applying should be between 21 years and 60 years of age) and copy of educational qualifications (duly certified by CA or Notary) Certificates of experience (duly certified by CA ) Your bio-data giving name, educational qualification, date of birth , age as on date of application and complete details of experience in capital market. * Profit & Loss a/c & Balance Sheet for last three years preceding the date of the application along with annexure thereto and the Net-Worth certificate for last three years. Latest possible Profit & Loss a/c & Balance Sheet, along with the Present networth certificate for the said period. Statement of investment (quoted & un-quoted) at cost & market price for the last 3 years and for the period for which latest documents are submitted. Copy of Income-tax & wealth tax Assessment Orders, computation of income & wealth for the last three years and details of taxes paid for these years. No objection certificate from the Stock Exchange of which you are a member. * Confirmation of loans & advances given as per the Balance Sheet as on 31st March, of the preceding financial year & for the period for which latest documents are submitted. Such other documents as may be called for and be required by the Exchange. Recommendation from the two members of the Exchange in the enclosed format.

2. 3.

4.

5.

6.

7.

8. 9.

10. 11.

[*] Documents must be certified by a chartered accountant as true and correct. 15

FORMAT FOR CALCULA TION OF NETWORTH

(For Trading Members of the Equity Segment of the Exchange other than Clearing Members of the Derivatives Segment) Statement of Networth as on -------Sr. No. Particulars Rs. Rs. Rs.

1. Listed (Quoted) Investments 2. Market value of listed (quoted) securities (other than Government) in the name of member (forming part of the Balance Sheet) 3. Margin of 30% on Market value of listed (quoted) securities (other than Government), i.e., 30% of 2 4. Net value of listed (quoted) Investments (other than Government), i.e., 2-3 5. Market value of listed (quoted) securities (Government) in the name of member (forming part of the Balance Sheet) 6. Margin of 10% on Market value of listed (quoted) securities (Government), i.e., 10% of 5 7. Net value of listed (quoted) Investments (Government), i.e., 5-6 8. Unlisted (unquoted) Investments 9. Book value of Unlisted (unquoted) Securities 10. Margin of 50% on Book Value of Unlisted (unquoted) Securities i.e. 50% of 9 11. Net value of Unlisted (unquoted) Investments i.e. 9-10 12. Other Investments at cost, if any 13. Total Net Investments ( 4+7+11+12) 14. Fixed Assets (used for the purpose of business) including land & building 15. Receivables which are less than 3 months old 16. Loans, Advances and Deposits 17. Loans and advances excluding loans and advances given to associates and related entities 18. Deposits excluding non-refundable deposits 19. Cash & Bank Balance 20. Other Assets, if any, (specify), which are used for the purpose of business 21. Total Assets ( 13+14+15+17+18+19+20+21) 22. Current Liabilities 23. Long Term Liabilities 24. Total Liabilities( 23+24) 25. Net Worth ( 22-25) 16
x x x x x x x x x x x x x x x x x x x x x x