Annexure 1
MINIMUM NETWORTH REQUIREMENT & METHOD OF COMPUTATION OF NETWORTH
AS PER THE TYPE OF MEMBERSHIP
All active members as on September 30, 2014 of Cash segment, Equity Derivative Segment,
Currency Derivative Segment and New Debt Segments of the Exchange are advised to submit the
Networth Certificate & Computation of Networth as per the following requirements and method:
Segment
Cash
Equity Derivative
Currency
Derivatives
New Debt Segment
Trading MemberTM/LTM (Networth
in Rs.)
30 lakhs
25 lakhs
1 Crore
Clearing MemberTCM/PCM
(Networth in Rs.)
NIL
3 crore
10 Crore
Self-Clearing
Member-SCM
(Networth in Rs.)
NIL
1 Crore
5 Crore
500 Crores(For
Banks)
500 Crores(For
Banks)
500 Crores(For
Banks)
50 lakhs
3 Crore
1 Crore
TM : Trading Membership
LTM : Limited Trading Membership
TCM : Trading and Clearing Membership
PCM : Professional Clearing Membership
SCM : Trading and Self Clearing Membership
Members who trade only in cash Segment are allowed to submit the Networth Certificate and
computation of networth in the Exchange prescribed format as per Annexure 2 and Annexure
2.2. Banks will be allowed to submit the Networth certificate as per Annexure 2.1 and
computation of Networth as per RBI guidelines. All other members are required to submit the
Networth Certificate and computation of networth in the SEBI prescribed format as per Annexure
3 and Annexure 3.1.
The members of Equity Derivative Segment, Currency Derivative Segment and New Debt
Segments who were inactive as on September 30, 2014 by virtue of voluntary deactivation of
their terminal or non-commencement of business but were active in Cash Segment as on
September 30, 2014 may submit the Networth Certificate and Computation of Networth either as
per Annexure 2 & 2.2 (Exchange prescribed format) or as per Annexure 3 & 3.1 (SEBI prescribed
format).
A member is treated as an inactive member as on September 30, 2014 only if he has voluntarily
closed the business and informed the Exchange about the voluntary closure or non
commencement of business.
Member is treated as an active member even though the member has not traded for a single day
during the F.Y. 2014-15 and its trading terminals are active as on September 30, 2014, and
hence required to submit Networth Certificate & Computation of Networth as on September 30,
2014.
Annexure 2
NETWORTH CERTIFICATE For Exchange prescribed format
(In Original & on the letterhead of the Chartered Accountant / Practicing Company Secretary)
NETWORTH CERTIFICATE
This is to certify that the networth of M/s __________________ (Membership No._____), trading
member of BSE Ltd as on _____________, as per statement of computation of networth of even
date annexed to this report is Rs. _________/- (Rupees __________________________ Only).
It is further certified that
1. _____________________ (Name of the Trading Member) is not engaged in any fund-based
activities or business other than that of securities. Existing fund based assets, if any, have
been divested from the books of account and have not been included for the purpose of
calculation of networth.
2. the computation of networth, based on my / our scrutiny of the books of accounts, records
and documents maintained by the trading member and produced before me / us for
verification, is true and correct to the best of my / our knowledge and as per information
provided to my / our satisfaction.
For (Name of Certifying Firm)
Name of Partner / Proprietor
Signature & Seal of Chartered Accountants / Practising Company Secretary
Membership Number of certifying firm:
Place:
Date:
For Banks Only
ANNEXURE 2.1
(on letter head of C.A.)
NETWORTH CERTIFICATE
This is to certify that the networth of M/s__________________ as on _____________, as per
RBI Guidelines is Rs. _________/- (Rupees __________________________ Only).
We further certify that:
The computation of networth, 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 networth is in accordance with Reserve Bank Of India guidelines.
For (Name of Certifying Firm)
Name of Partner / Proprietor
Signature & Seal of Chartered Accountants
Membership Number:
Place:
Date:
ANNEXURE 2.2
Computation of Networth : EXCHANGE PRESCRIBED
Name of the Trading Member
Clearing No.
Statement of Networth as on _________________
Sr. No. Particulars
Rs.
1.
Listed (Quoted) Investments
2.
Market value of listed (quoted) securities (other than
Government) in the name of trading 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 trading 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
Cost price or fair value (Average of Earning value
and Breakup Value) whichever is higher certified
by CA.
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 (Market value or Cost price
whichever is higher – Market price to be certified
by a government approved valuer)
15. Margin of 50% on Fixed Assets i.e. 50% of 14
16. Receivables which are less than 3 months old
17. Loans, Advances and Deposits
18. Loans and advances excluding loans and advances given
to associates and related entities
19. Deposits excluding non-refundable deposits
20. Cash & Bank Balance
21. Other Assets, if any, (specify), which are used for the
purpose of business
22. Total Assets ( 13+15+16+18+19+20+21)
23. Current Liabilities
24. Long Term Liabilities
25. Total Liabilities( 23+24)
26. Net Worth ( 22-25)
Rs.
Rs.
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
X
x
x
Signature & Seal of Chartered Accountants / Practising Company Secretary
Membership Number
X
X
Page 1 of 2
Notes: 1. For computation of loans and advances and sundry debtors (arising from securities
operations and others) as a component of current assets, all advances / loans and
sundry debtors other than those arising out of securities dealing have to be
excluded. Only such loans, advances and sundry debtors arising due to the
securities dealings are to be included as current assets for the purpose of networth
computation.
2. Details of items comprising investments, current assets, current liabilities and long
term liabilities should be given separately.
3. The following non-allowable assets should not be included in any head, while
computing the networth:(a) Pre-paid Expenses
(b) Losses/ Accumulated losses
(c) Miscellaneous Expenditure
(d) Deferred Expenditure
(e) Bad deliveries
(f) Intangible assets
(g) Doubtful debts / advances not provided for
(h) Non-refundable deposit
(i)
Loans and advances given to related entities.
(j)
Advances against capital expenditure.
______________________________________________________________________________
Page 2 of 2
Annexure 3.
Networth Computation as prescribed by SEBI (on letter head of C.A.)
(In Original & on the letterhead of the Chartered Accountant / Practicing Company Secretary)
NETWORTH CERTIFICATE
This is to certify that the networth of M/s__________________ (Membership No._____) as on
_____________, as per statement of computation of even date annexed to this report is Rs.
_________/- (Rupees __________________________ only).
We further certify that:
_____________ is not engaged in any fund based activities or business other than that of
securities. Existing fund based activities, if any, have been divested from the books of accounts
and have not been included for the purpose of calculation of networth *
The computation of networth is in accordance with the method of computation prescribed in
Schedule VI of the SEBI (Stock broker and Sub brokers) Regulations, 1992.
The computation of networth, 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.
For (Name of Certifying Firm)
Name of Partner / Proprietor
Signature & Seal of Chartered Accountants / Practising Company Secretary
Membership Number of Certifying firm :
Place:
Date:
Note: If not applicable/ non compliant, confirmation to that effect should be clearly mentioned
in the networth certificate alongwith justifications.
===============================================================
Annexure 3.1
Networth Computation
Capital + Free Reserves
Less: non-allowable assets
(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% value of marketable securities
* Explanation – Includes debts/advances overdue for more than three months or given to
associates.
ACTIONS FOR NON-COMPLIANCE
Annexure – 4
Trading Members of the Exchange are required to submit the Networth Certificate & Computation
of Networth as on September 30, 2014 by December 31, 2014 failing which as per the decision of
the Governing Board fines are imposed after the said due date in terms of the Exchange Notice
No. 20090812-13 dated August 12, 2009.
If a member fails to submit the above till June 30, 2015, then in addition to fines the BOLT
Terminals of the defaulting members will be deactivated w.e.f July 1, 2015.
The following norms for levying fines have been laid down for late / non-submission of networth
certificate within stipulated time
Late / Non Submission of Networth Certificate & Computation of Networth
As on : September 30, 2014
: Due Date : December 31, 2014
Date of Deactivation of Bolt w.e.f. July 1, 2015
Fine / Penalty Structure
Fine of Rs.100/- per day for first month from the due date.
Fine of Rs.200/- per day for the next one month.
Thereafter Rs.300/- till the date of submission or date of deactivation
whichever is earlier.
Networth Certificate, Computation of Networth statement (as applicable) should be
strictly in the prescribed format.
The trading members may please note that submission of:
i.
ii.
iii.
iv.
v.
Incorrect/incomplete documents,
Un-audited accounts,
Documents not being in the prescribed format,
Documents submitted online not legible or readable
Networth below the minimum networth requirement
will be treated as non-submission and will be treated as non-compliance.
Points to be considered to avoid Non-compliance:



Relevant Documents to be submitted before the due date i.e. 31st December, 2014
The Networth Certificate should be in Original, on the letter head of the Chartered
Accountant / Company Secretary and should also contain the Membership No. & seal
of the Chartered Accountant / Practicing Company Secretary.
Original Networth Computation should be as per the relevant format (as applicable)
certified by Chartered Accountant/ Practicing Company Secretary.
Annexure - 5 (i)
PROCEDURE FOR ONLINE UPLOADING OF NETWORTH
Members have to submit Networth Certificate & Computation of Networth online through
BSE portal:
Member has to visit BSE portal at URL: http://connect.bsewebx.co.in
Before Login Please Make Following Changes in Internet Option.
First
Step 1. Go To Tool Option.
Step 2. Select ‘Internet’ Option.
Step 3. Select ‘Security’ Option.
Step 4. Click On ‘Custom Level’ Button.
Step 5. ‘Enable’ All ActivX Related Radio Button.
Sept 6. Click OK Button.
Second
Step 1. Go To Tool Option.
Step 2. Select ‘ Local Intranet’ Option.
Step 3. Select ‘Security’ Option.
Step 4. Click On ‘Custom Level’ Button.
Step 5. ‘Enable’ All ActivX Related Radio Button.
Sept 6. Click OK Button.
Third
Step 1. Go To Tool Option.
Step 2. Select ‘Internet’ Option.
Step 3. Select ‘Security’ Option.
Step 4. Select ‘Trusted Sites’ Option.
Step 4. Click On ‘Sites’ Button.
Step 5. Add http://connect.bsewebx.co.in
Sept 6. Click ‘Add’ Button.
Step 7. Click On ‘Ok’ button.
If you are using Internet Explorer version 8 then following given setting are also
required –
1. Click on the Tools option
2. Click on the compatibility View.
3. Add BEFS URL.
4. Click on ADD button
Note: Pop Up blocker must be off.
Annexure 5 (ii)
Members have to submit a Networth Submission online through BSE portal:
System Requirements (hardware & software):
For applicant machine configuration please refer below:
Applicant Machine Configuration
HARDWARE
SOFTWARE
256 MB RAM or above
Windows XP Professional
Color SVGA Monitor
Internet Explorer 6.0 or above & SP1 (1024X 768 Display)
JVM MDAC2.8 or above only for machines from where
processing is to be done
Procedure to be followed for submission of online Networth Submission is as given below:

Upon receipt of scanned documents from applicant through BSE Portal, the status of application on
BSE Portal shall be displayed by default as ‘Documents awaited’ with remarks shown as ‘physical
documents to be submitted within seven (7) days from the date of uploading data.

In case of receipt of physical documents, the status in BSE PORTAL shall be changed to ‘Documents
Received’.

After receipt of physical documents from the applicant, the scanned documents and the information
submitted through BSE PORTAL shall be scrutinized by the Exchange.

Upon scrutiny, if the physical documents are found complete, the status in BSE PORTAL shall be
changed to ‘Documents Received-Complete’.

In case of in-complete documents, the applicant will be informed vide letter / email or both
highlighting the deficiencies in the Networth submission. The status in BSE PORTAL shall be changed
to ‘Documents Received-Incomplete’.

Upon re-submission of complete application on BSE PORTAL, the applicant shall also submit physical
documents within 7 calendar days of re-submission request on BSE PORTAL.
The nomenclatures of the files to be uploaded are:
For September Net worth
Subject
Networth Certificate
Networth Computation
File Name
Netcertclearingnoseptyyyy
Netcompclearingnoseptyyyy
Eg : in case Clg. No. 123456, the files names would be as follows :
File Name
netcert123456sept2014
netcomp123456sept2014
Subject
Networth Certificate
Networth Computation
Members are requested to keep ready the scanned documents with the aforesaid files
names before uploading on BSE Portal.
For the detailed screens for uploading the documents, please refer screen page no. 1
to 14.
Annexure 5 (iii)
1
Please put your Clearing No. & Password & Click on “Login”
2
Select Networth
Certificate
3
1. Click on ‘Add
New’ Option
2.
Select Mode as “Half Yearly” & Financial Year
as‘31/03/2014’
4
Step 1
Please enter the details in
the screen as per your
Computation of Networth
certified by Auditors.
Step 2
Please note that if all the
fields given in the screen is
not applicable, the members
are required to enter ‘0’ in
such fields
Step 3
Name of the Auditors,
Auditor No., Address and
Phone no. of Auditors
should be entered.
 After entering the requisite details, please click on “Save update” button
 On click “save update” button, the following screen will be displayed.
Note : Before clicking on “Save & Update” please confirm that the details are
entered as per “SEBI prescribed format in case you are submitting the
networth as per SEBI prescribed
5
If you are Active Derivative Member, the above message is showing that you should
enter and upload the documents in SEBI prescribed Format only. Please click “OK”
6
The Message is showing that the “Record added successfully”.
Members are requested to keep ready the scanned documents with the correct files
Nomenclature before uploading on BSE Portal.
Next Step, please click “Document upload” button for uploading the scanned documents
7
Please upload respective file one by one by clicking “Browse’ button as per the given
sequence.
The system will not upload the file if the files names are not as per the defined “file
nomenclature”
The nomenclature of the files to be uploaded are:
Subject
File Nomenclature
Networth Certificate
netcertclearingnomaryyyy
Networth Computation
netcompclearingnomaryyyy
Eg : in case Clg. No. 123456, the files names would be as follows :
File Name
Subject
netcert123456sept2014
Networth Certificate
netcomp123456sept2014
Networth Computation
“123456” means your Clearing Number.
8
On uploading all files sequentially the system will indicate the receipt by “right mark”
in select column.
On uploading all files, please click “Save Update” button. The system will take some
time to update.
9
If you are uploaded the documents with incorrect file nomenclature or the files
nomenclature containing capital letter, system will show File format or File name not
correct.
You have to just click “O. K.” button and Re-upload files sequentially with correct file
nomenclature & click on “Save & Update’ button.
10
Click to “Generate ID” to generate the unique Application ID
No.
11
The System will generate Application ID – the
print of the same has to be sent
to the Exchange by the member alongwith the physical document,
within 7 days from the date of online submission to the following address:
The Sr.General Manager
Membership Operations Dept.
BSE Ltd.
Mezzanine Floor, P. J. Tower
Dalal Street, Fort,
Mumbai 400 001.
12
Problem & Solution
 After updating the networth details as shown in and while uploading the scanned
documents, if system gets logged off due to some technical reason or if there are any
changes to be made in the figures already entered and saved by you, members are
requested to repeat the process shown as per Screen 1 & 2 and then click on “Search”
button and Select ‘Half Yearly” & Half Yearly “30/09/2014” to retrieve the entered
networth details.

On retrieving the same, members are requested to make changes in order to ‘save
update’ the data again.
Members are then requested to follow the procedure as shown in the screen no. 7 to 11