INVITATION FOR APPLICATIONS FOR TRADING MEMBERSHIP OF
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LTD
National Commodity & Derivatives Exchange Limited (NCDEX) was promoted by ICICI Bank Limited, Life Insurance
Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock
Exchange of India Limited (NSEIL). Punjab National Bank, CRISIL, Canara Bank, Indian Farmers Fertiliser Co-operative
Limited (IFFCO), Goldman Sachs and Intercontinental Exchange (ICE) have also subsequently become the shareholders
of NCDEX. NCDEX has been set up to provide an on line platform for trading facilities in commodities futures trading. It is
an important step in upgrading trading facilities and bringing the Indian commodity markets in line with the international
markets.
NCDEX invites applications for Trading Membership (TM ) from persons who fulfill eligibility criteria contained herein for
trading in commodities. TM will have rights to trade on his own account as well as on account of his clients but shall
have no right to clear and settle such trades himself. All such trading member must be affiliated with any one of the
Professional Clearing Member or Strategic Trading and Clearing Member (PCM / STCM) who has been certified by the
Exchange as an approved PCM/STCM for the same.
The words “Member” and “Applicant” used hereinafter refer and apply to Trading Members (TMs)
The Applicants who are admitted as Members shall adhere to the conditions, stipulations and guidelines communicated
to them / notified from time to time by NCDEX and / or Forward Markets Commission (FMC) and / or any other Indian
regulatory / statutory authorities.
1.
CRITERIA FOR ADMISSION AS TRADING MEMBER ON NCDEX
A. ELIGIBILITY
1) The following persons are eligible to apply for becoming TMs subject to the provisions of Forward Contracts
(Regulation) Act, 1952, the rules, circulars, notifications, guidelines, etc., prescribed thereunder and any other
Indian law in force and the Byelaws, Rules and Regulations, guidelines, circulars, directions and decisions of
NCDEX: (a)
(b)
(c)
(d)
Individuals
Sole proprietorships
Partnership Firms
Co-operative societies registered with the registrar of co-operative societies of respective states / Union
Territories
(e) Companies, Corporations or institutions incorporated under Companies Act, 1956 or under any central or state
legislation and are permitted under their Memorandum of Association or applicable constitution document for
engaging in production / trading / consumption / broking in commodities / derivatives. The Applicants who are
in the process of being incorporated under Companies Act, 1956 or enactment as mentioned above or in the
process of amending their Memorandum of Association or their constitution document to include the activities
mentioned above as permitted activities, may also apply. However, their membership will be effective only
upon completion of the aforesaid process to the satisfaction of NCDEX.
(f) Such other persons / entities as may be permitted by the Relevant Authority of NCDEX.
2) No person shall be admitted as a Member if
(a) he is less than 21 years of age
(b) he is not a citizen of India
(c) he is not at least a graduate or having an equivalent qualification (relaxable at the discretion of NCDEX, in case of
persons with adequate experience in commodities/financial markets)
(d) he has been adjudged bankrupt or a receiver order in bankruptcy has been made against him or he has been proved
to be insolvent even though he has obtained his final discharge
(e) he has been convicted of an offence involving a fraud or dishonesty or any crime of similar nature
(f) he has been debarred from trading in commodities by statutory / regulatory authority
(g) he incurs such disqualification under the provisions of the Forward Contracts (Regulation) Act, 1952 or Rules
made thereunder so as to disentitle such persons from seeking membership of commodity exchanges
(h) NCDEX determines that it is not in public or business interest to admit him as a member on NCDEX
provided that:
1)
(i)
(j)
(k)
In case of individuals & sole proprietorships: The individual / sole proprietor shall fulfill all the
criteria of eligibility as stated above.
2) In case of partnership firms: all the partners should fulfill all the criteria of eligibility as stated above
except (c) provided that at least one of the partners fulfills eligibility criteria stipulated in (c) above.
3) In case of body corporates, companies and institutions, all the directors fulfill the eligibility criteria
stated above except (b) & (c) provided one of the directors fulfill the criteria stipulated in (c) above.
4) In case of co-operative societies, all the members of the governing body should fulfill all the criteria
of eligibility as stated above except (b) and (c) provided one of the members fulfill the criteria
stipulated in (b) and (c) above
it is a body corporate or a company or co-operative society which has committed any act which renders it liable to
be wound up under the provisions of the law
it is a body corporate or a company or a co-operative society in respect of which a provisional liquidator or receiver
or official liquidator has been appointed by a competent court
he or the partnership firm or body corporate or a company or a co-operative society as the case may be does not
possess a minimum net worth as prescribed herein or from time to time.
B. SHAREHOLDING/SHARING PATTERN FOR UNLISTED COMPANIES AND PARTNERSHIP FIRMS
Where the Applicant is an unlisted company (other than subsidiary / joint venture of listed companies) or a partnership
firm, the Applicant shall identify a Dominant Promoter Group at the time of making the application. The Dominant
Promoter Group shall consist only of individuals, not more than four in number who collectively shall hold at least 51%
of the paid up equity capital of the applicant company or the partnership firm directly or indirectly.
Any change in the shareholding of the company / partnership firm including that of the said Dominant Promoter Group
or their shareholding interest shall be effected only with the prior written permission of NCDEX. For arriving at the
shareholding of persons constituting the Dominant Promoter Group, the shareholding of his/their close relatives, viz.
parents, spouse, children and their descendants, brothers and sisters only may be counted provided these relatives give
an irrevocable and unconditional support in writing in the prescribed format in respect of such shareholding.
Indirect shareholding shall be calculated proportionately by reckoning the direct shareholding of the Dominant Promoter
Group along with the support of their specified relatives in the corporate shareholder of the TM company, provided the
specified relatives give their irrevocable and unconditional support to individuals in the Dominant Promoter Group in the
format prescribed in Annexure C-6.
Any change in the Dominant Promoter Group would require the TM to seek fresh approval of NCDEX for membership and
to pay approval fee and/or additional deposits to NCDEX and also abide by such conditions as NCDEX may stipulate while
granting such approval.
In case where none of the dominant promoters is on the Board of Directors of the company, then at least two directors, each
of whom holding a minimum of 5% of the paid up equity capital of the company, should be on the Board of Directors.
The partnership firms shall also identify a Dominant Partner Group consisting of not more than four individuals who
collectively shall always have more than 51% share in the profits & losses of the firm. The firm shall also comply with the
above requirements for change in the Dominant Partner Group.
C.
ADDITIONAL EDUCATIONAL REQUIREMENTS FOR TRADING MEMBERS
NCDEX may require the Applicants or one of their employees / directors / partners / member of governing body to pass a
certification programme, as stipulated by NCDEX and in the event of failure of the Applicant to comply with this
requirement, NCDEX may take action as deemed appropriate including suspension of trading rights. NCDEX reserves the
right to expand / modify the scope of its educational and certification requirements.
D.
FINANCIAL SOUNDNESS
An Applicant must possess a minimum net worth as prescribed by NCDEX which may be increased or decreased by
NCDEX at its absolute discretion at any time including after granting membership to the Applicant. The net worth for this
purpose should be calculated as per the method stipulated in Annexure C-1A
Preference however will be given to individuals/firms/corporates / co-operative societies with:
(i) individuals/partners/directors/ members of governing body having professional qualifications like CA, CS, CWA,
CFA, MBA (Finance), Food / Diary technology, Agricultural science, Mining Engineering, Metallurgy etc or any other
equivalent qualification from any reputed institution or direct experience in commodity trading as brokers/sub-brokers
(ii) Well established dealing offices with a well dispersed client network, principal dealing office for commodities in the
place from which it is applying for membership or is operating in the said place as a broker, sub-broker, authorised
assistant or authorised clerk or authorised representative or remisier or apprentice to a member of a recognised stock /
commodity exchange, dealer, jobber, market maker or in any other manner in dealings in equities / commodities.
(iii) Higher net worth.
E.
FEE / DEPOSIT STRUCTURE AND NET WORTH REQUIRMENT
Applicants accepted for admission will be required to pay the following fees ( exclusive of Service Tax ) / deposits and
also maintain net worth as given below:
(Rs)
Sr.
No.
1
2
4
5
6
Particulars
Admission Fee (one time, non-refundable )
Annual Membership Fees
Initial Margin (to be provided through the
Clearing Member )
i) Interest Free Cash Security Deposit
ii) Collateral Security Deposit
Net worth Requirement
Formula / Methodology applicable for
calculation of net worth
TM-APMC
Member/Farmer
Organization
(Rs )
TM- Others
( Rs )
2,50,000
10,000
5,00,000
10,000
STCM/PCM to
collect Deposits
5,00,000
As given in the
Annexure C- 1A
STCM/PCM to collect
Deposits
5,00,000
As given in the
Annexure C- 1A
The one time admission fee payable is non refundable and once in - principle approval letter for granting Trading
Membership is issued to the applicant pending compliance of documents, the admission fee shall become non
refundable.
Deposit for setting up VSAT terminals and operating cost for the VSAT / lease line network will be levied separately as per
the policy prevailing from time to time. NCDEX, however, would retain its right to amend / revise / include any charges
from time to time.
An applicant must pay the membership and other fees, deposits etc, as applicable at the time of admission. The security
deposits/ Initial margin or such deposit as may be stipulated from time to time, will be included while determining the net
worth of the TM and would, subject to Bye Laws, Rules and Regulations of NCDEX, be refunded to the TM upon surrender
of membership provided that a minimum period of 3 years & 3 months have elapsed from the date of membership or 6
months have elapsed from the date of last trade whichever is later.
MISCELLANEOUS
A.
INFRASTRUCTURE
NCDEX may specify such standards for investor service and infrastructure with regard to any category of Members, as it
may deem necessary, from time to time. This may include infrastructure like office premises, trading terminals, VSAT, and /
or other communication equipment etc.
B.
ADMISSION PROCEDURE
The admission procedure shall consist of appraisal of valid applications and other documents annexed thereto and interview
by a membership committee constituted by NCDEX for this purpose. Based on the performance of the applicant in the
interview and fulfillment of other eligibility criteria, the membership committee shall recommend the selection of TMs on
NCDEX. The final acceptance / rejection of any membership / recommendation for membership by the membership
committee shall be at the absolute discretion of the Managing Director of NCDEX and the decision of the Managing Director
shall be final and binding. No correspondence shall be entertained in respect of any such decision.
C.
SUBMISSION OF APPLICATION FORM
Eligible applicants are required to submit their applications for TM of NCDEX in the format prescribed in the Annexures
hereto, complete in all respects, along with all relevant documents and accompanied by non refundable Processing Fee of Rs
2248/- ( inclusive of Service Tax @ 12.36 % ) by demand draft / pay order drawn in favour of “National Commodity &
Derivatives Exchange Limited”, payable at Mumbai. Incomplete applications and multiple applications are liable to be
rejected. The application along with relevant documents and the demand draft / pay order must be submitted at the following
office of NCDEX.
Address
National Commodity & Derivatives Exchange Limited
1st Floor, Akruti Corporate Park
L B S Marg, Kanjur Marg ( West )
Mumbai 400 078
Tel. No. 22 - 66406789
Fax. No.22 - 66406899
www.ncdex.com
Notwithstanding anything contained herein, NCDEX shall have absolute discretion and right to relax, vary,
change, add to and delete any or all of the eligibility criteria for Application / Membership for any person or
partners or directors or any member of governing body. Further, the admission of the applicant as a
member would be at the sole discretion of NCDEX.
CHECKLIST
(For Corporate Applicants)
Along with the completed application form (Annexure A1 Revised), kindly attach the following documents,
Annexures




Certificate of net worth (Annexure – C1 & C-1A)
Undertaking from relative of persons constituting dominant promoter / partner group (Annexure – C6) –
only for unlisted corporates & partner firms.
Undertaking from corporate shareholders supporting persons constituting dominant promoter group
(Annexure – C6 - Corporate) – [only for unlisted corporates] with CA’s certificate for corporate
shareholding co’s shareholding pattern.
One set of summary sheets
Other documents
























Self-attested copies of Memorandum of Articles & Certificate of Incorporation , Certificate for
Commencement of Business for corporates / institutions
Self-attested copy of registration certificate for registration with registrar of co-operatives and byelaws
for co-operative societies
Attested copy of the board resolution authorizing the application for membership and authorizing the
company directors / officials to apply and sign on behalf of Company documents etc ( as per format
provided by the Exchange ), duly certified by at least two directors of the company.
Self-attested copy of the resolution by Governing / Managing body of co-operative society authorizing
the application for membership
Attested copies of proof of age, education and experience of directors, governing body members etc (
attestation, by CA/ Gazetted Officer or by any officer of the Exchange after verifying with the original).
Attested copy of PAN Card of applicant company (attestation by CA/ Gazetted Officer or by any officer
of the Exchange after verifying with the original)
Attested copy of PAN Card of all its directors copies (attestation by CA/ Gazetted Officer or by any
officer of the Exchange after verifying with the original)
Photo Identity ( e g PAN Card or Valid Passport or Valid Driving Licence or Voter’s ID card ) and Proof
of Residence [ e g Valid Passport or Latest Telephone Bill ( not more than 3 months old ) or Latest
Electricity Bill ( not more than 3 months old ) or Ration Card or Valid Driving Licence ] of all the
Directors ( these documents must be attested by CA/ Gazetted Officer or by any officer of the Exchange
after verifying with the original)
Acknowledged / Signed copy in - principle approval letter ( issued by the Exchange to the applicant after
clearing the Interview )
Specimen signature of authorized representative/s duly attested by bank officials with signature / stamp
of bank
Member Registration Form ( MR Form ) for registration of membership with FMC
User ID Application Form in Exchange prescribed format ( format attached ) to be submitted along with
attested copy of the PAN card of the proposed User
Letter from the Clearing Member ( as per prescribed format )
Stamped Trading Member Undertaking ( as per prescribed format ) duly notorised
Reference letter / Conduct Certificate from banks
Conduct certificate ( not more than 3 months old ) from the respective stock / commodity
exchanges where the applicant / partners / director / dominant promoter(s) /group company
/associate company is/are members.
Conduct certificate ( not more than 3 months old ) from the TCM ( applicable in cases where
the applicant is currently trading as a Client of NCDEX ‘s TCM )
Details of pending court cases, disciplinary action taken by any stock / commodity exchange / regulatory
authorities, bankruptcy proceedings etc (if any)
Self-attested copy of the last audited Balance Sheet
Self- attested copies of the latest returns of Income Tax and Wealth tax along with proof of filing the same.
Photographs of the signatories to be pasted on the application form
Details of the director/s who will appear for the interview
Insurance Policy for the risks associated with their business operations ( to be submitted by the applicant
company before the trading is commenced on the Exchange ).
Any other documents. Please specify_______________________________
Funds payment – Admission Fees – Rs. 5.00 Lacs + Services Tax @ 12.36% ( Rs 61800/- ) = Rs 5,61,800/( Adm Fees for Members of APMCs or Farmer Organizations
-Rs 2.50 Lacs + Services Tax @ 12.36% ( Rs30900/- )= Rs 2,80,900/-)
Processing Fees Rs 2000/- + Services Tax @ 12.36% ( Rs 248/- )
= Rs 2,248/Annual Mem. Fees
Rs. 10000/- + Services Tax @ 12.36%%( Rs 1236/- ) = Rs 11,236/Interest Free Cash Deposit .& Collateral Deposit : STCM / PCM will collect these Deposits
NCDEX reserves the right to call on any / all applicants to submit any further documents, any time during
the membership registration process or thereafter. The Applicant / Member is required to submit the
documents as required by NCDEX.
ANNEXURE-A1-REVISED
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED (NCDEX)
APPLICATION FORM FOR TRADING MEMBERSHIP OF NCDEX ( CORPORATES)
PART I
i)
ii)
iii)
Please read the accompanying notes carefully before filling up the form.
Please attach all relevant documents along with this application.
Please use additional sheets to furnish information, wherever necessary.
--------------------------------------------------------------------------------------------------------------1.
NAME OF APPLICANT:
2.
a) Constitution:
 CORPORATE - Pvt. Ltd.


CORPORATE - Public Ltd – Listed
CORPORATE - Public Ltd – Unlisted


CO-OPERATIVE SOCIETY
OTHERS – PLEASE SPECIFY
b) If you are a Corporate –Public Ltd – Listed Company, please submit details as under :
Sr. No.
Name of the Stock Exchange(s)
on which company is listed
Listed since (date)
A.
B.
3. Date of /Incorporation/Registration/Proposed :
4.
Details of the Chief Executive/Managing Partner/Proprietor:
Name
:
Address :
__________________________________________________________
____________________________________________________________
____________________________________________________________
City
________________________________________________________
Pin
________________
Tel.
________________
Mobile No.__________________
Fax
________________
Email ID
_________________
Contact Person’s Name ____________________________________
Designation
________________________________________
(Please give details of the Chief Executive/Proprietor/Partners/Chairman of the governing body and all
Directors/partners/members of governing body in Part II Point 1,, along with their detailed biodata)
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
5.
Registered Office ______________________
Address
__________________________________________________
_________________________________________________
City
_________________________ Pin
________________
Tel.
________________________
________________
Email ID
__________________________________
Fax
Contact Person’s Name______________________________________________
Designation
6.
Address for
Communication
:
___________________
Mobile No
________________
__________________________________________________
__________________________________________________
City
_______________________________ Pin ________________
Tel.
______________________ Fax ____________________
Email ID
_______________________________________________
Contact Person’s Name_______________________________________________
Designation
_______________________ Mobile No. ________________
7.
Name of the stock / commodity exchange(s) on which the applicant and / or any director / dominant
promoter / partner is a member..
Details of Stock/Commodity Exchange Memberships :
S.N
Name
in which
membership
exists
Name of Stock /
Commodity Exchange
Since
Membership No.
Mode of
acquisition
1.
2.
3.
4.
Notes : 1 . Preferably, submit conduct certificates from the respective stock / commodity exchanges for
the applicant / partners / director / dominant promoter(s) /group company /associate company
2. For each of these memberships, give details of disciplinary action, if any, taken by the Stock /
Commodity Exchange or any other regulatory authority in separate sheet( to be attached
herewith).
8. Net worth of the Applicant in Rs.__________ Lakhs as on ___________.
The Net Worth Certificate is attached in the format prescribed in Annexure C-1& C-1A.
( The applicant shall submit the Certificate of Net worth computed in accordance with the guideline given in the
enclosed Annexure C-1 & C-1A)
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
9. Are the promoters / Major Shareholders : ( delete which is not applicable )
a)
b)
c)
d)
e)
f)
Commodity Brokers
Stock Brokers Brokers
Commodity & Stock Brokers
Manufacturers
Agriculturists
Others (Please give full details)
Yes / No
Yes / No
Yes / No
Yes / No
Yes / No
10. Are you an Income Tax assessee?
YES / NO
If Yes, Please attach a copy of the latest IT Return with proof of filing.
11. Are you a Wealth Tax assessee?
YES / NO
If Yes, Please attach a copy of the latest Wealth Tax Return with proof of filing
12. Name and address of the bankers and the facilities availed from such banks. (Please enclose reference letters
from each bank)
13. Whether any court case/s are pending against:
A)
the applicant/partners/promoters/directors/staff
YES / NO
B) the applicant, Directors/Promoters and staff who have been a promoter / principal / partner /
director of any organisation in the past that has had any court case pending.
YES / NO
14. Whether any of the applicant/partners/promoters /directors/employees involved in any financial irregularities?
YES / NO
15. Has any disciplinary action been taken by any stock / commodity exchange against the applicant or any of the
partners/promoters / directors / shareholders / employees of the applicant? If so, please give details in a separate
sheet?
YES / NO
16. Please give full details of the applicant/partner / promoters/ shareholders / directors / any of the core staff who
will be dealing in the Commodities Segment:
(a)
has/have ever been adjudged bankrupt or have a receiver order been made against them or have been
proved to be insolvent at any time?
YES/ NO
(b)
has/have ever compounded with its creditors for less than full discharge of debts? YES / NO
(c)
has/have ever been involved in litigations, suits or proceedings or have been involved in any financial
liability of contingent or unascertained nature? YES / NO
(d)
has/have ever been at any time convicted of an offence involving fraud or dishonesty or financial
irregularities? YES / NO
(e)
has/have ever been denied / rejected for membership of any stock / commodity exchange or commercial
organisation? YES / NO
(f)
has/have ever been suspended / expelled / declared a defaulter on any stock / commodity exchange or he
has been debarred from trading in commodities by any Regulatory Authorities like RBI, SEBI, FMC,
Registrar of co-operative societies etc.? YES / NO
(g)
has/have committed any act, which renders it liable to be wound-up? YES / NO
(h)
has/have had a provisional liquidator or receiver or official liquidator appointed to it by a competent
court? YES / NO
(If answers to question nos 13 - 16 are yes, please give complete details separately.)
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
17. We hereby declare, assure and undertake as under :
b. We hereby agree that the dealers employed by the company shall clear the Certification Programme as specified
by the Exchange.
c. We declare and undertake that any of the promoters or dominant shareholders of the Applicant company do not
singly or jointly have / nor shall have at any time, an equity holding of 10% or more and/or any share in his/their
own name and/or jointly with any of his/their close relatives in any other membership of NCDEX.
d. In case the company is currently an unlisted company and goes for a public issue, the Offer document /
Prospectus shall be submitted to NCDEX for prior perusal, at least 21 days before opening of subscription list.
e. None of the memberships listed under Point 7 above has/have ever been suspended / expelled / penalised /
declared defaulter or any other disciplinary action initiated there against by the concerned commodity exchanges or
any other regulatory authority except as detailed herein below :
18. a. We declare on solemn affirmation that we have neither been declared defaulters by any Stock Exchange in India/
by SEBI or any commodity exchanges, nor are we related or associated with any other entity/person who have been
declared defaulters by any Stock/Commodity Exchanges in India/SEBI.
b. We further declare that, none of the dominant shareholders nor directors of our company and any other company in
our group, have been declared as defaulters by any Stock/Commodity Exchanges in India/SEBI or are related or
associated with any other entity/person who have been declared defaulters by any Stock/Commodity Exchanges in
India/SEBI.
c. We further declare that no enquiry/investigation has been initiated/pending against the company or any of the
dominant shareholders/directors or the shareholders and directors of the group companies by any Stock/Commodity
Exchanges/SEBI.
19.
Name of the Proprietor/Partner/Director/Dealer who will appear for the interview _____________________
(fill-up the enclosed format)
We enclose attested copies of Certificate of Incorporation, Certificate for Commencement of Business (if
applicable), and Memorandum and Articles of Association of the company.. Copies of the last audited Balance
Sheets is also enclosed.
We are not currently trading on your Exchange as Client of any of your member/s or otherwise*
OR
We are currently trading on your Exchange through the following member/s of your Exchange* :
Name of Member
Our Client Code
a)
b)
* Pl tick whichever is applicable and delete the one not applicable
1)
We are aware that as per your Exchange’s Rules & Regulations on our securing membership of your
Exchange and commencing trading on your Exchange as a member, we are not allowed to trade through any
other member of your Exchange without your prior permission in writing.
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
We hereby give our unconditional irrevocable undertaking in favour of National Commodity & Derivatives Exchange
Limited that :
A) Prior to commencement of trading on NCDEX as your member, we undertake discontinue all our trading as
clients of your member/s, if any
B) During the currency of our membership of your Exchange, we will not trade on your Exchange through any
other member/s of your Exchange without your prior permission in writing
We understand that our investments in any subsidiary / joint ventures shall be excluded while calculating our net
worth and in case the same falls below the minimum net worth stipulated by NCDEX before or after granting of
membership, NCDEX is free to take any action it deems fit, including termination of our membership
Any misstatement or misrepresentation or suppression of facts in connection with this application for trading
membership or breach of any undertaking or condition of admission to trading membership entails rejection of
application or expulsion of trading membership.
We hereby state that the information given above is true, correct and complete to the best of our knowledge and
information. We also state that no relevant material fact has been suppressed. We agree that in the event of any of
the above statements being found false, incorrect or incomplete, we recognise that NCDEX may take any action as
it may deem fit, including termination of the trading membership. We also agree to provide NCDEX with all such
documents as may be called for and be required by NCDEX from time to time.
We hereby undertake to inform NCDEX about any change in the above-mentioned facts within 15 days of the
change taking place / coming to our knowledge, whichever is earlier.
Director’s Signature :
Name
:
Designation :
Director’s signature :
Name :
Designation :
Date
Place
Date
Place
Stamp of applicant Co
:
:
Affix Passport
size photograph
of the
Signatory
:
:
Affix Passport
size photograph
of the
Signatory
APPLICATION TO BE SIGNED BY:
For Co-operative Societies - By two persons duly authorized by resolution in accordance with Bye Laws
of the
society (submit copy of the relevant resolutions, duly signed)
For Corporates / Institution: - Managing Director/Whole Time Director/any other person authorised by the
Board.
(submit certified true copy of the relevant Board resolution)
ANNEXURE-A1-REVISED CONTINUED
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED (NCDEX)
APPLICATION FORM FOR TRADING MEMBERSHIP OF NCDEX ( CORPORATES)
PART II
This part should be filled and duly signed by the applicant entity and countersigned / certified by a Chartered Accountants
1. Details of Directors/Society Member
S.
N
Designation, since
Name
Age
Education
Nationality /
Residential Status of
each director @
Experience No. of years
Share holding
No.
Amt
% of
total
Directorships /
controlling
share holding in
other cos /
entities @@#
1
2
3
4
5
NOTES :
@ e g Resident Indian, NRI, PIO ( citizen of UK ), Foreign National ( citizen of Austria )
@@ : Enclose the conduct Certificate / Status report from the stock exchange for the companies.
# : For each of these memberships, give details of disciplinary action, if any, taken by the Stock / Commodity Exchange or any other regulatory authority in respect of these memberships
with dates in the following format:
* Expulsion ; Suspension ; Default ; Any other disciplinary action or enquiry against the member
*
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
CA’s Signature
CA’s firm’s stamp
x
2.
Shareholding Pattern of _________________( name of applicant company ) as on ______
S.N
Name #
Nationality/ Residential Status
of each shareholder @
Number of Shares held
( of Face value of Rs_____)
Amt paid up ( Rs )
%age of total
1
2
3
4
5
6
7
8
Others @@
TOTAL
100.00 %
NOTES :
# In case of your shareholder being a body corporate or your company being a subsidiary company, give similar details of the parent/holding company also separately.
@ e g Individuals : Resident Indian Individual, NRI individual , PIO ( citizen of …… ), Foreign National ( citizen of ………………),
Corporate shareholder : e g Indian Co without any foreign holding ( by NRI or PIO or OBC or FII or Non Resident – Ltd Liability Partnership etc as share
holders ) or e g , Indian Co with foreign holding ( by NRI or PIO or OBC or FII or Non Resident – Ltd Liability Partnership etc as shareholders )( if so the
shareholding pattern of such corporate shareholder co should also be submitted in same format ), Foreign Company ( with its country of incorporation ) etc
@@ Persons holding 2% or more of the paid up capital should be shown separately and not clubbed in Others.
3. Details of Applicant Company’s DOMINANT PROMOTER GROUP as on _____
Sr. No.
Name
No. of Shares @
Self
Relatives/
Corporate
Support
Total Amt paid up@
Self
Relatives/
Corporate
Support
%age of Total@
Self
Relatives/
Corporate
Support
Total
1.
2.
3.
4.
--------------------------------------------------------------------------------------------------------------------------------------TOTAL
===============================================================================
@ : For arriving at the shareholding of persons constituting the Dominant promoter group, the shareholding of close relatives, namely parents, spouse, children and their descendants,
brothers, sisters and associates only may also be counted provided these relatives give an irrevocable, unconditional support in writing on the prescribed format (Annexure C-6).
Director’s Signature 1. x
Director’s Signature 2 x
CA’s Signature
x
Stamp of applicant company
CA’s firm’s stamp
Details given under Part II Point No 1 above contains the latest list of directors as on the date of this application.
There has been no change in the Board of Directors of the undersigned, nor is it likely to be effected due to any
direct or indirect transfer of shares or other equity instruments in the share capital of the company or any direct or
indirect transfer of shares or other equity instruments in the share capital of any one or more companies or bodies
corporate holding any part of the paid up capital of the company. We undertake to keep NCDEX informed of any
changes in the board of directors
We hereby state that the information given above in Part II of this application as well as in the annexures /
enclosure/s are true, correct and complete to the best of our knowledge and information. We also state that no
relevant material fact has been suppressed. We agree that in the event of any of the above statements being found
false, incorrect or incomplete, we recognize that NCDEX may take any action as it may deem fit, including
termination of the membership.
We hereby undertake to inform NCDEX of the change in the above-mentioned facts within 15 days of the change
taking place/coming to our knowledge, whichever is earlier.
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
CERTIFICATE
This is to certify that :
a) the details of directors and their shareholding in ______________ ( name of
applicant entity ) as and the details of their Directorships / controlling shareholding in
other companies, as given ( in Part II, Point 1 )above,
b) that the Shareholding in ______________ ( name of applicant entity )as given ( in
Part II, Points 2 & 3 ) above
are 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.
Place:
For (Name of Certifying Firm)
Date:
Round Stamp
Name of Partner/Proprietor
Chartered Accountant /
Practising Company Secretary
Membership Number
SUMMARY SHEET
(Three sets of Summary Sheet should be submitted with the application form)
1.
Name of the Applicant
Constitution :
:
2.
Date of Birth/Incorporation/Registration
3.
Chief Executive/Chairman/Managing Partner/Proprietor
a) Name
:
b) Qualification
:
c) Experience - Nature
:
No. of years
d) Other directorships /
controlling interests
:
4.
:
:
:
Managing Director
a) Name
:
b) Qualification
:
c) Experience - Nature
:
No. of years
d) Other directorships /
controlling interests
:
:
Other Directors/Partners
(Please give following details for all other directors/partners)
a) Name
:
b) Qualification
:
c) Experience - Nature
:
No. of years
:
d) Other directorships /
controlling interests
:
a) Name
:
b) Qualification
:
c) Experience - Nature
:
No. of years
d) Other directorships /
controlling interests
:
:
5. Are you, any partner/directors/dominant promoter(s)/associate company, member(s) of any other stock /
commodity exchange? If so, name of the exchange along with dates when they were acquired and total turnover
figures for last 3 financial years (in Rs. Crores).
6.
Net worth as indicated in the application form (Rs. Lakh) :
Computed as on:
7. Level of Income (expressed in terms of percentage and amount in Rs. Lakh ) of applicants from activities such as :
a)
b)
c)
d)
Income
Stock / Commodity Broking
Merchant Banking
& related activities
Fund based activities
(such as Leasing /
Hire Purchase / Lending. etc)
Others (Please specify)
Percentage of Total
Signature of applicant…………………………………..
------- ~ ------- ~ ------- ~ ~ ------- ~ ------- ~ -------
NOTES FOR APPLICANTS
An applicant for membership is required to note the following and furnish all the documents.
1.
2.
3.
4.
5.
Applications should be complete in all respects.
Applications may be retyped on A4 size paper provided all the contents remain intact. Applications are also available at
www.ncdex.com
The Net worth should be computed as of March 31, of the immediate preceding financial year or later and presented in
the prescribed format given in Annexure C-1A, along with the computation sheet. For partnership firms net worth of
each partner should also be submitted. The Net worth certificate should preferably be submitted on the basis of audited
financial statements.
Applicant Company’s investments in any subsidiary / joint ventures should be excluded while calculating your net
worth and in case the same falls below the minimum net worth stipulated by NCDEX before or after granting of
membership, NCDEX will be free to take any action it deems fit, including termination of our membership
Details should be given of each item considered in the computation. Thus, details of investments, current assets,
current liabilities, fixed assets including land and building, Debtors outstanding for more than 3 months etc. should be
specifically stated. Even if the amount of any item involved in the computation is nil, it should be stated in the
computation.
6.
Preferably, please submit conduct certificates from the respective stock / commodity exchanges for the
applicant / partners / director / dominant promoter(s) /group company /associate company. Also, for each of
these memberships, give details of disciplinary action, if any, taken by the Stock / Commodity Exchange or
any other regulatory authority in separate sheet( to be attached herewith).
7.
Summary Sheets : Applicants should submit 1 copy of the summary sheets. The summary sheet should contain a
summary of information given in the application form and annexures in the prescribed format.

The names, educational qualifications and experience of the Proprietor/Partners/ Persons and Directors whose
bio- data are submitted should be briefly summarised in the summary sheets.

Information on the Proprietor/Partners/Chairman/Managing Director and Chief Executive should be stated
along with information on the other directors and dealers whose bio-data have been submitted.

Number of years experience in activities relating to banking services, financial services, stock/commodity
broking or treasury should be stated.

If necessary, the summary sheet may be retyped on A4 size paper to accommodate the required details.

Summary sheets are to be signed by the same persons signing the application forms.
Please submit , a certified true copy of Board Resolution passed by the applicant company authorizing company
directors / officials to apply and sign on behalf of Company ( as per format provided by the Exchange ) duly
signed by at least two directors of the company.
8.
9.
10.
11.
12.
13.
14.
Duly completed application should be submitted along with the following

Account Payee Bank Draft / Pay order for Rs. 2248/- payable at Mumbai. (in favour of National
Commodity & Derivatives Exchange Limited)

Certificate of Incorporation, Memorandum & Articles of Association

Net worth Certificate in the format provided in Annexure C-1.

Self-attested copies of the last audited Balance Sheet of the applicant Co.

Self-attested copies of the latest returns of Income Tax and Wealth tax along with proof of filing
the same.
Photo Identity ( e g PAN Card or Valid Passport or Valid Driving Licence or Voter’s ID card ) and Proof of
Residence [ e g Valid Passport or Latest Telephone Bill ( not more than 3 months old ) or Latest Electricity Bill (
not more than 3 months old ) or Ration Card or Valid Driving Licence ] of all the Directors ( these documents
must be attested by CA or Gazetted Officer or by any officer of the Exchange after verifying with the original)
Proof of age and educational qualification, should be ( duly attested by gazetted officer / Chartered Accountant or by
any officer of the Exchange after verifying with the original ) to be attached
Attested copies of Certificate of Incorporation, Certificate for Commencement of Business (if applicable),
Memorandum of Association and Articles of Association or Partnership Deed. In the MOA, Commodity broking /
trading / hedging / financing / processing / financial services should be one of the objects of the company (. suggested
MOA clause attached )
Insurance Policy for the risks associated with their business operations is to be submitted by the applicant
company before the trading is commenced on the Exchange.
In - principle approval letter will be issued by the Exchange to the applicant ( which contains the terms and
conditions of the membership ), after the interview by MAC is cleared by them. The Applicant Company is
required to return / submit to the Exchange, a copy of the In-Principle Letter , duly dated and signed by the
authorized signatory/ies
of the company on the acknowledgement portion ( at the bottom of the letter ), in token of having agreed to the
terms of In - principle approval letter.
15. Conduct Certificate from Bank. ( if the applicant company is newly formed Co at the time of applying for
membership, a letter from the Bank certifying maintenance of banking a/cs with them, may be submitted ).
16. Specimen signature of authorized representative/s duly attested by bank officials with signature / stamp of bank
17. Member Registration Form ( MR Form ) for registration of membership with FMC (format attached) should be
submitted.
17. User ID Application Form in Exchange prescribed format ( format attached ) to be submitted along with attested
copy of the PAN card of the proposed User
18
19.
Certified copy of PAN card of the member company ( attested by CA or Gazetted Officer any officer of the
Exchange after verifying with the original).
Also, certified copy PAN card of all the directors company ( attested by CA or Gazetted Officer or any officer of
the Exchange after verifying with the original)
20. Funds payment – Admission Fees –
Rs. 5.00 Lacs + Services Tax @ 12.36% ( Rs 61800/- ) = Rs 5,61,800/( Adm Fees for Members of APMCs or Farmer Organizations
-- Rs 2.50 Lacs + Services Tax @ 12.36% ( Rs30900/- )= Rs 2,80,900/- )
Processing Fees Rs 2000/- + Services Tax @ 12.36% ( Rs 248/- )
= Rs 2,248/Annual Mem. Fees Rs. 10000/- + Services Tax @ 12.36%%( Rs 1236/- ) = Rs 11,236/Interest Free Cash Deposit .& Collateral Deposit : STCM / PCM will collect these Deposits
21. Letter from the Clearing Member ( as per prescribed format )
22. Conduct certificate ( not more than 3 months old ) from the TCM ( applicable in cases where the
applicant is currently trading as a Client of NCDEX ‘s TCM )
23.
24.
25.
26.
Stamped Trading Member Undertaking ( as per prescribed format ) duly notorised ( Format attached )
Such other documents as may be called for and be required by the NCDEX from time to time.
Such other documents that the applicant believes are relevant to the application may also be submitted.
Attention of applicants is particularly drawn to the following provisions:

Any canvassing by an applicant shall debar his application from being considered for membership of
NCDEX.

The number of members to be admitted shall be at the sole discretion of NCDEX.
Annexure : C-1
Certificate dated _________ submitted by ____________________ to NCDEX
(For Corporates, Institutions, Co-operative Societies, Individuals & Sole Proprietorships)
CERTIFICATE
This is to certify that the Net worth of_M/s./Mr./Ms.______________________as on _____________as per the
statement of computation of even date annexed to this certificate is Rupees______________ only.
It is further certified that the computation of Net worth 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.
Date:
For (Name of Accounting Firm)
Place:
Stamp
Name of Partner
Chartered Accountant
Membership Number
Annexure C – 1A.
Computation of Net worth of Trading Members as part of Membership Requirements
The TM members are required to provide the Net worth Certificate as per the format provided in Annexure C - 1
The TM members have the option of calculating their net worth as per any of the two methods given below. However,
once a TM member chooses one of the two given methods, he will have to continue to compute his net worth using the
same method unless a change of method is specifically approved by NCDEX.
Method 1:
The net worth should be computed either as per the format given below;
Paid up Capital *
Net worth calculated as follows:
Paid up Capital
Add: Reserve & Surplus
(excluding revaluation reserves)
Less: Accumulated losses if any Less: Miscellaneous Expenditure Total Net worth
* Give details of capital issued after the date specified above.
Or
Method 2:
By valuation of their assets on the following basis :
A.
Listed (Quoted) investments in the name of the applicant (at market value)
(Detailed list to be enclosed)
B.
Margin of 30% on market value of listed (quoted) Investments
C.
Net value of listed Investments (A) – (B)
D.
Investments in unlisted (unquoted) companies (as per Note No. 2)
E.
Margin of 50% on (D)
F.
Net value of unlisted Investments (D) – (E)
G.
Other Investments (at cost) like PPF, NSC at current value, Statutory deposits with NCDEX, Deposits with
registered
NBFCs, Bank FDs
H.
Total Net Investments (C) + (F) + (G)
I.
Market Value of Land & Building component of the Fixed Assets (Full details of such assets like survey
number,
location, address, extent of land & building to be furnished)
J.
Margin on I at 50%
K.
Net value of such fixed assets (I – J).
L.
Debtors not exceeding 3 months + Cash & Bank balance
M.
Current Liabilities
N.
Long term liabilities
O.
Net worth (H + K + L) – (M + N)
Notes: 1.
Valuation of
fixed assets for the consideration of net worth would have to be certified by government
approved valuers which should not be more than 2 years old. Only those items of land & building that are in the
name of the TM member as well as in the possession of the TM member shall be included under the head (I) Land & Building component of the Fixed Assets. Those properties that are leased out by the TM member or
taken on lease shall not be included for computation of net worth. Fixed Assets other than Land & Building
shall not be included for the purpose of computation of net worth.
2.
Valuation of unlisted investments would be at “fair value” of the said investment, i.e. the average of the “break
up value” and the “earning value”. For this purpose: -
a)
The “break up value” means the equity capital and reserves as reduced by intangible assets and revaluation
reserves, divided by the number of equity shares of the investee company.
b)
The “earning value” means the value of an equity share computed by taking the average of profits after tax as
reduced by the preference dividend and adjusted for extra-ordinary and non-recurring items, for the
immediately preceding three years and further divided by the number of equity shares of the investee company
and capitalised at the following rate:  In case of predominantly manufacturing company, eight percent;
 In case of predominantly trading company, ten percent; and
 In case of any other company, including an NBFC, twelve percent;
 If, an investee company is a loss making company, the earning value will be taken at zero.
(For e.g. earning value for an NBFC with capitalisation rate of 12%, is earning per share multiplied
by 100/12)




3.
Details of items comprising investments, current assets, current liabilities and long term liabilities should be
given separately.
4.
Current assets should exclude loans to related entities, bad and doubtful debts and debts outstanding for more
than 3 months, advance against capital assets, pledged securities / assets, prepaid expenses and also intangible
assets.
5.
Debtors should be distinguished as debtors arising from commodity operations and others.
6.
Value of membership card / Deposits with any other Stock / Commodity Exchange are to be excluded for the
purpose of computation of net worth.
7.
Advance / Investment with or debts due from persons / entities notified under Special Court (Trial of
Offences Relating to Transactions in Securities) Act, 1992 are to be excluded for the purpose of computation of
net worth.
Applicant entity’s ur investments in any subsidiary / joint ventures shall be excluded while calculating our
net worth and in case the same falls below the minimum net worth stipulated by NCDEX before or after
granting of membership, NCDEX will be free to take any action it deems fit, including termination of our
membership.
8.
Annexure : C-6 ( Relatives )
Certificate dated__________ submitted by_____________________to NCDEX
UNDERTAKING FROM …………………………………………. ( Name of the Applicant or Member Entity
WITH REGARD TO SUPPORT OF RELATIVE/S OF PERSON/S CONSTITUTING
DOMINANT PROMOTER / PARTNER GROUP
We ……………………………………….. ( Name of the Applicant or Member Entity ) declare and undertake that:
M/Ms___________________________________is/are the absolute owner of ______ (no.) of shares of Rs. ___ each,
Rs. _______per share paid up, which constitutes _____ % of the total paid up capital of our company as on this date.
M/Ms___________________________________is/are the absolute owner of ______ (no.) of shares of Rs. ___ each,
Rs. _______per share paid up, which constitutes _____ % of the total paid up capital of our company as on this date.
M/Ms___________________________________is/are the absolute owner of ______ (no.) of shares of Rs. ___ each,
Rs. _______per share paid up, which constitutes _____ % of the total paid up capital of our company as on this date.
M/Ms___________________________________is/are the absolute owner of ______ (no.) of shares of Rs. ___ each,
Rs. _______per share paid up, which constitutes _____ % of the total paid up capital of our company as on this date.
We hereby declare that the aforesaid person/s are close relatives ( I e either parent/s or spouse or children or their
descendants or brothers and sisters of Mr/Ms. ________________( Name of the concerned DPG constituent ) and that
he/she/they has/ have submitted to us letter/s of support extending irrevocably and unconditionally support in respect
of their shareholding / sharing pattern, in favour of Mr/Ms. ________________( Name of the concerned DPG
constituent ) , a shareholder / partner in the above mentioned company / partnership firm We hereby declare that the
aforesaid person/s have further confirmed to us that they have no objection to their above-mentioned shareholding /
sharing
pattern
being
clubbed
with
the
shareholding
/
sharing
pattern
of
Mr/Ms.
______________________________________( Name of the concerned DPG constituent ), for the purpose of
determining the dominant promoter / partner group of the said company / partnership firm and that they will give prior
information to us and to the National Commodity & Derivatives Exchange Limited before selling or otherwise
transferring any part or whole of their above mentioned shareholding / sharing pattern.
We hereby undertake that we will not allow the above named person/s to selling or otherwise transferring any part or
whole of their above mentioned shareholding / sharing pattern and also will not grant such permission to them without
obtaining prior written permission from the National Commodity & Derivatives Exchange Limited.
We clearly understand that NCDEX has agreed to grant membership and/ or continue our membership relying on
this undertaking. We agree that in the event of any breach of the undertaking given above, NCDEX may take any
action as it may deem fit, including termination of the trading membership.
WITNESS BY
:
For ____________________( Name of Applicant Co )
Name
:
Signature :
1) x
Address :
2) x
Date
:
Directors
Names of Directors
Place:
Date:
CERTIFICATE
This is to certify that the Shareholding / sharing pattern in ______________________________________________as
given above, 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..
Date:
For (Name of Accounting Firm)
Place:
Stamp
Name of Partner
Chartered Accountant / Practising Co Secy
Membership Number
Note : For arriving at the shareholding of persons constituting the Dominant group, the shareholding of close relatives,
namely parents, spouse, children and their descendants, brothers and sisters only may be counted provided these
relatives give an irrevocable, unconditional support in writing to the applicant entity who in turn submits Annexure C-6
to the Exchnage.. Please refer to part B of chapter 1 of the invitation for application document as well as Application
Form ( Annexure A-1 ) Part II, Point 2/3.
Annexure : C-6 ( Corporate Support )
Certificate dated_________
submitted by____________ __
_to NCDEX
UNDERTAKING REGRDING SUPPORT OF CORPORATE SHAREHOLDER SUPPORTING
DOMINANT PROMOTER GROUP
UNDERTAKING FROM …………………………………………. ( Name of the Applicant or Member Entity)
We …………………………………………………………………… ( Name of the Applicant or Member Entity )
declare and undertake that:
1. …………………………………………………………….( Name of the Corporate Shareholder ) .is/are the absolute
owner of ______ (no.) of shares of Rs. ___ each, Rs. _____ per share paid up, which constitutes _____ % of the total
paid up capital of our company as on this date.
2. Mr./Ms._____________________________________, dominant promoters of the Trading Member Company along
with his/her specified relatives @ viz Mr/ Ms……………………………..… Mr /Ms………………………………….
are having _____% shareholding in ………………………………………….…. ( Name of the Corporate Shareholder ).
3. ……………… ………………………………( Name of the Corporate Shareholder ) has written to us stating that we
may convey confirmation to NCDEX, on their behalf, to consider the shareholding of Mr / Ms …………..………….
Name of the DPG constituent ) in their company in the permissible proportion to arrive at the dominant shareholders in
the our Company and also requested us to give an irrevocable undertaking on their behalf conveying to NCDEX
extension of their unconditional support to Mr./Ms. __________________________________ (Name of the Dominant
promoters of the TM Company) to enable NCDEX to consider the aforesaid as dominant group.
4. Accordingly, we hereby confirm that ……………………………………. ( Name of the Corporate Shareholder ) has
submitted to us their written letterextending support to Mr./Ms. _________________________ (Name of the Dominant
promoters of the TM Company ) in order to enable us to confirm extension of our unconditional and irrevocable
support of ……………. …………………….. ( Name of the Corporate Shareholder ) to ……………………………….
to Mr./Ms.__________________________ _________(Name of the Dominant promoters of the TM Company) for the
purpose of the determining the dominant group in our Company.
We also undertake to give prior information to NCDEX before any change in the shareholding effecting/allowing of
Mr./Ms.____________________________________ * or their close relatives named above under para 2 is effected in
……………………. …………………………….. ( Name of the Corporate Shareholder )
WITNESS BY
:
Name
Signature :
Address :
Date
:
For ____________________( Name of Applicant Co )
1) x
2) x
:
Directors
Names of Directors
Place:
Date:
* Name of the Dominant Promoters of the TM Company along with their specified relatives having shareholding in the
corporate giving the undertaking.
@ Specified Relative means close relatives, namely parents, spouse, children and their descendants, brothers and sisters
of persons constituting the Dominant group
CERTIFICATE
Shareholding Pattern of the Corporate Shareholding Company
This is to certify that the shareholding of M/s. ___________________________ ( Corporate Shareholding Company )
is/are as mentioned below, based on our scrutiny of the books of accounts, records and documents. We further certify
that the information given above is true and correct to the best of our knowledge and as per information provided to our
satisfaction.
Sl. No.
Name of the Share holder
No. of Shares
Paid up
Capital
Share
%
Shareholdi
ng
Date:
For (Name of Accounting Firm)
Place:
Stamp
Name of Partner
Chartered Accountant /
Practising Company Secretary
Membership Number
Note: The above certificate should be given along with the undertaking ([Annexure : C-6 ( Corporate Support )].
(To be executed on stamp paper of Rs. 300/- and duly notarised)
1. Trading Membership Undertaking – Corporate
This undertaking is executed at ___________ on this _________ day of
___________, 2009
Authorised Director’s Signature.
x
To :
National Commodity & Derivatives Exchange Limited
Regd. Office
1st flr, Akruti Corporate Park,
LBS Marg, Kanjurmarg (W),
Mumbai - 400 078
hereinafter called “NCDEX” or “the Exchange” (which expression shall unless it be
repugnant to the context or meaning thereof be deemed to mean and include its
successors and assigns)
BY
Authorised
Director’s Signature. x
....….........................................................................................................
Regd.Office .....................................................................…………………………………
Authorised Director’s Signature. x
hereinafter called “The Undersigned” (which expression shall unless it be
repugnant to the context or meaning thereof be deemed to mean and include its
successors and permitted assigns).
WHEREAS NCDEX has agreed to admit the Undersigned as a Trading Member on its
trading platform in accordance with the Bye-Laws, Rules and Regulations of NCDEX
in force from time to time.
AND WHEREAS NCDEX has, as a precondition to the Undersigned being admitted as
a Trading Member, interalia required the Undersigned to furnish the undertaking in
the manner and on the terms herein below:
AND WHEREAS at a duly convened meeting of the Board of Directors (the "Board")
of the Undersigned being _________________________ Limited, the Board has
authorised Mr/Ms._____________ and Mr/Ms.____________________ to sign,
execute and furnish the Undertaking to NCDEX on its behalf on the following lines.
NOW THEREFORE in consideration of NCDEX admitting the Undersigned as a Trading
Member on its platform, the Undersigned hereby undertakes and agrees that:1. the Undersigned shall comply with all such requirements, existing and future with
regard to and in connection with its admission and continuation as a Trading
Member;
Director’s Signature 1. x
Director’s Signature 2 x
Seal / Initial of Notary
Stamp of applicant company
2. the Undersigned shall adhere to the Bye-laws, Rules and Regulations of NCDEX
as in force from time to time;
3. the Undersigned shall settle its deals through a Clearing Member of NCDEX and
abide by and adopt the Bye Laws, Rules and Regulations pertaining to the
trading and risk management systems of NCDEX and any other agencies
appointed by NCDEX for this purpose and any amendments made thereto from
time to time and the Undersigned shall execute the requisite prescribed
documents with the Clearing Member of NCDEX;
4. NCDEX shall be entitled to amend its Bye-laws, Rules and Regulations unilaterally
and the Undersigned shall be deemed to have consented to them, and
accordingly be bound by the Bye-laws, Rules and Regulations prevailing from
time to time and NCDEX shall be entitled to all powers vested in them under the
Rules, Bye-laws and Regulations, by which the Undersigned unconditionally
agrees to be bound;
5. the Undersigned shall abide by the code of conduct as laid down from time to
time by NCDEX and also all the Rules, Bye-laws and Regulations, circulars,
guidelines etc. framed by NCDEX or the Forward Markets Commission
(hereinafter referred to as `FMC’) or any other Regulatory Authority/ies from
time to time;
6. the Undersigned shall maintain and preserve all information, records, books and
documents pertaining to the business of the Undersigned as a Trading Member
on the platform of NCDEX for such period as may be specified by NCDEX from
time to time;
7. the Undersigned shall permit access and/or inspection by NCDEX, FMC or any
other authority authorized/appointed for the purpose, to all records, books,
information, documents as may be required therefor;
8. the Undersigned shall submit periodic reports, statements, certificates and such
other documents as may be required by NCDEX, FMC or any other authority
appointed for the purpose and shall comply with such audit requirements as may
be stipulated by NCDEX or any of the above authorities from time to time;
9. the Undersigned shall follow and comply with all such orders or instructions
including any such order or instruction, whether being in the nature of a penalty
or otherwise, as may be issued by NCDEX or any committee or agency of NCDEX
constituted for the purpose, in the event of the Undersigned committing any
violation of any Rules, Bye laws, Regulations or practice or code of conduct
prescribed by NCDEX in respect of the conduct of the business in NCDEX;
10. the Undersigned shall conduct business on NCDEX prudently and shall ensure
that it shall not be prejudicial or detrimental to public interest or the market in
general, and to NCDEX in particular;
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
Seal / Initial of Notary
11. if any difference/dispute arises as to the interpretation, the meanings or the
effect of this undertaking or as to the rights and liabilities of the Undersigned or
as to any other matter relating to NCDEX's operations, the same shall be settled
to the extent and in the manner provided under the Rules, Bye-laws and
Regulations of NCDEX;
12. the Undersigned shall pay to NCDEX either directly or through the Clearing
Member or in any other manner as may be prescribed, any margins, costs,
levies, compensations, charges and expenses including fees prescribed by NCDEX
from time to time, arising from or incidental to the Undersigned operating on the
NCDEX’s trading systems; and the Undersigned undertakes to establish other
systems as permitted and required in accordance with the specifications
prescribed by NCDEX from time to time;
13. the Undersigned shall use the NCDEX's infrastructure facilities and equipment
only for the purpose for which they are permitted to be used;
14. the Undersigned shall furnish security deposits, bank guarantees, pledge
securities, hypothecate movables, create lien on bank accounts or furnish such
other security as may be permitted or required by NCDEX from time to time and
to do all acts, deeds and things to enable NCDEX to exercise or invoke all or part
of the above mentioned securities / deposits / bank guarantee/s and other
collateral to secure recovery of default in payment and other incidental charges
relating to default and any other dues of NCDEX and /or its clearing
house/agents, if any;
15. the Undersigned shall bring in additional deposits and funds as and when
required to maintain the level of capital adequacy, margin requirements or other
norms as stipulated from time to time to operate on NCDEX;
16. the Undersigned shall be an active participant on NCDEX on being admitted as a
Trading Member on its platform.
17. the Undersigned is aware that the Undersigned would be/is admitted as a
Trading Member on NCDEX’s platform on paying the prescribed membership fee,
interest free deposit, initial and/or other margins and collateral securities in the
manner prescribed by NCDEX
and that the Undersigned do unequivocally
undertake that it shall not be entitled to make any claim for refund of the
interest free deposit and collateral securities except when it surrenders its
membership to NCDEX, that too for the amount lying after appropriation of
amounts due from the undersigned towards liabilities or obligation towards
NCDEX and/or its clearing house/agent;
18. without prejudice to the foregoing, NCDEX shall be entitled to appropriate any
property, funds, amounts, deposits or other sums due to the Undersigned or to
the credit of the Undersigned in such events or contingencies as may be
stipulated in the Rules, Bye-laws and Regulations or directions of NCDEX in force
from time to time;
Director’s Signature 1. x
Director’s Signature 2 x
Seal / Initial of Notary
Stamp of applicant company
19. NCDEX shall not be held responsible or liable for any failure of computer
systems, telecommunication network and other equipment installed at the offices
of the Undersigned and NCDEX shall also not be held responsible for any misuse,
mishandling, damage, loss, defect etc. and NCDEX has the right to inspect and
supervise all computer systems, software programs, tele-communications
equipment, VSAT etc, installed at the office of the Undersigned and the
Undersigned shall not make any alterations, modifications and changes without
the prior written consent of NCDEX;
21. the Undersigned shall not disclose, reveal or compromise any material
information relating to operations, membership, software, hardware, etc. of
NCDEX without prior written consent of NCDEX except and to the extent as may
be required in the normal course of its business;
22. the Undersigned shall keep the password in strict confidence and secrecy and
shall not disclose the same to any person and Undersigned shall be bound by all
transactions and trades done on the NCDEX by use of the password.
23. where in the opinion of NCDEX, any change in the composition of the Board of
Directors of the Undersigned has resulted or is likely to result due to any direct
or indirect transfer of shares or securities in the share capital of the Undersigned
or any one or more companies or bodies corporate holding any part of the paidup capital of the Undersigned, NCDEX will be entitled to review continuation of
the Undersigned as a Trading Member on its platform; and the Undersigned shall
be bound by any decision taken by NCDEX in this regard which shall be final;
24. within 3 days from the date of the meeting of the Board of Directors of the
Undersigned or other authorised committee, the Undersigned shall notify NCDEX
of any approval or refusal to transfer the shares or securities forming part of the
issued capital of the Undersigned, if such transfer has or is likely to result in any
change in the composition of the Board of Directors of the Undersigned;
25. the Undersigned shall execute, sign, subscribe to such other documents, papers,
agreement, covenants, bonds, and/or undertakings as may be prescribed or
required by NCDEX from time to time;
26. the Undersigned undertakes to make such contributions to Settlement
Guarantee Fund or any such other fund pertaining to/constituted by the
Exchange as and when required by NCDEX and also comply with all requirements
stipulated by NCDEX in respect thereof;
27. the Undersigned undertakes to subscribe to the mandatory insurance cover as
required by NCDEX for the Trading Members of NCDEX and to pay the requisite
insurance premium and also to comply with all requirements of NCDEX in respect
thereof;
28. the Undersigned shall get itself registered with the relevant Sales Tax
/VAT/Excise/Mandi or other Authority(ies) as required under law and undertakes
to pay all applicable sales tax/VAT/Excise/service tax/Mandi fee and stamp duty
and other such levies.
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
Seal / Initial of Notary
29. the Undersigned shall reimburse NCDEX any tax such as sales tax, VAT, mandi
fee, excise duty , service tax, stamp duty etc., (including interests and penalties
thereon if any) or any such other levy, in the event of NCDEX having incurred or
being levied and made to pay or bear any such liability by the respective
Authorities.
30. the Undersigned shall take prior approval from NCDEX before forming any
partnership, subsidiary or acquiring a major shareholding in any other company;
and undertakes to comply with any additional conditions as may be stipulated by
NCDEX in that regard and agrees to be bound by any decision as may be taken
by NCDEX on account thereof.
31. In the case of unlisted body corporates, the dominant promoter group shall
consist only of individuals, not more than four in number who shall hold at least
51% of the paid up capital directly or indirectly. Any change in the said
dominant promoter group or their shareholding interest shall be effected only
after prior permission from NCDEX; The undersigned agrees to pay any fee as
prescribed by NCDEX from time to time for such changes in the dominant
promoter group.
32. the Undersigned agrees and undertakes that the fees, security deposits, other
monies and any additional deposits paid, either directly to NCDEX or through one
of its Clearing Members or in any other manner prescribed, whether in the form
of cash, bank guarantee, securities or otherwise and lying with NCDEX, to the
account of the Undersigned shall be subject to a first and paramount lien for any
sum due to NCDEX and all other claims against the Undersigned for due
fulfillment of engagements, obligations and liabilities of the Undersigned arising
out of or incidental to any dealings made subject to the Byelaws, Rules and
Regulations of NCDEX. NCDEX shall be entitled to adjust or appropriate such
fees, deposits and other monies for such dues and claims, to the exclusion of the
other claims against the Undersigned, without any reference to the Undersigned;
33. the Undersigned shall ensure that the data communication link between the
NCDEX’s equipment and Undersigned’s Trader Workstation shall be used on
point-to-point basis only. The Undersigned shall further ensure the above link will
not be connected to any other telecommunication network, except as permitted
by NCDEX;
34. the Undersigned agrees to pay all charges, fee or other monies including all
margins and deposits prescribed by NCDEX from time to time as and when
demanded by NCDEX including but not limited to membership charges and
renewal of membership charges. NCDEX shall be entitled to suspend and/or
terminate the membership of the Undersigned in the event of non payment of
any such charges by the Undersigned.
35. The Undersigned agrees that it shall not be permitted to appoint any
Dealer/Franchisee/Sub-broker or any Authorised Person to trade on its behalf.
However, it shall be allowed to trade on behalf of Clients.
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
Seal / Initial of Notary
36. the Undersigned shall indemnify NCDEX against any loss or damage including
liabilities arising out of failure to comply with any or all of the above Clauses and
/or failure to comply with the Rules, Bye-laws and Regulations of NCDEX or
directions thereunder or directions of the Regulatory authority/ies.
The Undersigned do hereby confirm that the information provided by the
Undersigned in the application form for the Trading Membership of NCDEX is true
and correct to the best of knowledge and belief of the Undersigned and that the
above undertakings will be binding on the successors and permitted assigns of the
Undersigned.
Signed sealed and delivered
by the within named
being the authorised person
in terms of the resolution
of the Board of Directors of
M/s__________________
at the duly convened meeting
held on .................................,
)
)
)
)
)
)
)
)
For……………………………………………………..
Dir. 1 x
Dir. 2 x
in the presence of
)
Mr / Ms .....................
)
Witness’s name, address & signature)
Seal & Signature of the Notary
Directors
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED
Identity Card for Interview
Name of the Applicant
Affix Passport
size photograph
of the
Interviewee
:
Constitution
:
Name of the Interviewee
:
Age
:
Status/Designation
:
___________________________
_______________________
(Signature of the Examinee)
(Signature & Seal of the Applicant)
Note: This Identity Card should be brought by the examinee for the Interview.
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED
Identity Card for Interview
Name of the Applicant
Constitution
Name of the Interviewee
:
:
Age
Status/Designation
Affix Passport
size photograph
of the
Interviewee
:
:
:
___________________________
_______________________
(Signature of the Examinee)
(Signature & Seal of the Applicant)
Note: This Identity Card should be brought by the examinee for the Interview.
Board Resolution from Applicant Company for seeking membership
Format
On Company’s Letterhead
Board Resolution
Certified True Copy of the Extracts of the Minutes of the Meeting of the
Board of Directors of --------------------------------------Ltd , which was duly
convened and where proper quorum was present, held on -------------2008,
at ………………………( address ). ,
RESOLVED that the company may approach the National Commodity &
Derivatives Exchange Limited ( NCDEX ) for membership as a Trading
Member .
It was FURTHER RESOLVED that Sri …………………….. and
……………………………Director/s / Authorised Signatory/ies are
hereby jointly and /or severally /singly authorised to approach the
National Commodity & Derivatives Exchange Limited ( NCDEX ) for the
necessary action in this connection and also to execute, on behalf of the
company, Trading Member Agreement and/ or any other document/s in
favor of National Commodity & Derivatives Exchange Limited. The said
directors are also severally/singly authorized to deal with the Exchange
and to give instructions to it from time to time.
It was further resolved that a copy of the above resolutions be furnished to
NCDEX, certified by any two directors.
Certified True Copy
( Name: ………….. )
Director
Certified True Copy
( Name: ………….. )
Director
Suggested Main Object Clause in MOA :
The main objective clause to be inserted in the Memorandum of Association is :
To carry on the business of trading in agricultural products, metals including precious metals, precious
stones, diamonds, petroleum and energy products and all other commodities and securities, in spot markets
and in futures and all kinds of derivatives of all the above commodities and securities.
To carry on business as brokers, sub brokers, market makers, arbitrageurs, investors and/or hedgers in
agricultural products, metals including precious metals, precious stones, diamonds, petroleum and energy
products and all other commodities and securities, in spot markets and in futures and all kinds of derivatives
of all the above commodities and securities permitted under the laws of India.
To become members and participate in trading, settlement and other activities of commodity exchange/s
(including national multi - commodity exchange/s) facilitating, for itself or for clients, trades and
clearing/settlement of trades in spots, in futures and in derivatives of all the above commodities permitted
under the laws of India.
FORM (MR)
(Format of the Return to be sent by the
Members of the Recognized / Registered associations)
NATIONAL COMMODITY & DERIVATIVES EXCHANGE LTD.
Sr.
No.
1.
2.
3.
4.
5.
6.
Description
Name of the Member with Code No. given by the Exchange
Unique Member Code (to be assigned by the Forward
Markets Commission.)
Address of the Member with telephone, Fax, telex, mobile
number(s) and E mail ID
Trade Name of the Member
PAN Number
Type of Membership A) Trading Member B) Clearing
Member C) Trading cum Clearing Member
7.
If the member is only trading member, give details of
Clearing member including address
8.
9.
10.
11.
Date of admission to Membership
Date of commencement of Trading/activity.
Interested Commodities for trading
Whether dealing in physical commodities? If so please
specify the dealing A) Farmer b)Commission Agent
c)Stockiest d)Traders e)Exporter f)Bulk Consumer
Form of the Member: sole proprietorship/ partnership/
corporate body/ financial institution
Name/s and educational qualifications of proprietor/ partners/
directors
Whether member of any other recognized / registered
association (Commodity Exchange). If so, give the name(s)
of the exchanges and code of membership, date of
admission of other recognized/ registered associations
Whether the director or its partners at any time convicted of
any offence. If so, furnish the details if any disciplinary and
criminal history.
Whether the director or partners declared insolvent/bankrupt
or declared defaulter by any exchange/ commodity/ stock
market. If yes, furnish details.
Net worth of the member. Please furnish details and
necessary documents in support there of
Are member’s subsidiaries or registered as trading/clearing
member of securities market?
If yes, provide the details of subsidiary, its registrations
number etc
List of clients (with addresses and telephone numbers.) and
whether individual/institutional/hedger.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Details
2. In case there is any change in the status of any item as indicted above, the
same may be communicated to the Forward Markets Commission, Mumbai
through respective exchanges.
3. I declare that the information given in this form is true to the best of my
knowledge and belief.
Place:
Signature:
Dated:
Name of Member:
Confirmation of the Exchange
This is to certify that ___________________________________is a member of
this recognized / registered association (Exchange) and the above information is
correct.
Place:
Signature:
Dated:
Name and designation :
(On the Letterhead of the Trading Member)
Application for creation of new User Id for VSAT/Leased Line/Internet
To
:
Membership Department
National Commodity & Derivatives Exchange Limited
Akruti Corporate Park, 1st Floor,
LBS Road, Kanjur Marg (West)
Mumbai 400 078
Dear Sir,
I/We _______________________ (Name of Trading Member) do hereby request you to
permit Mr. / Ms. ___________________(Name of User) to act as our Approved USER
for trading on my/our behalf through VSAT/Leased Line/Internet terminals.
1. Status & Address of the office :
where terminal is located.
DETAILS OF THE PROPOSED USER
1. Name of the person for whom this
application for allotment of User ID
is made (expand all initials)
2. Age
3. Father’s name
4. Address
:
:
:
:
5. Qualification
6. Type of User
:
:
7. Reason for application of User
ID
:
8. No. of Existing User IDs at the
above VSAT/Leased line
:
Director’s Signature 1. x
Director’s Signature 2 x
Regd. Office / Head Office / Dealing Office
Office Address:






Dealer
Corporate Manager
Branch Manager
Inquiry Only
Administration
Internet Dealer/User
Stamp of applicant company
9. Relationship of the proposed User :
with the Trading Member i.e. an
employee, agent on commission
basis,
trainee,
client
or
others.(pls. specify)
10. Mode of connectivity for trading :
from the office where terminal is
located.(from where the proposed
User would operate)
9. If Internet, payment option
:
 VSAT ID
 Lease Line ID
 Internet
 Rs. 1,000/- per month
 Rs.10,000/- per year
We hereby confirm that the following have already been installed by us for the new
trader workstation (TWS) for which this permission is being sought:
Sr. No.
A
B
C
D
E
F
Particulars
PC with following configuration:
Pentium III 555 MHz or above ( Minimum) or
Pentium IV (Recommended)
256 MB RAM
Min. 20 GB Hard Disk Drive
525 KB conventional memory
32 Bit LAN Card
Operating System Windows 2000 Professional SP4
Yes / No
Yes / No
Yes /
Yes /
Yes /
Yes /
Yes /
No
No
No
No
No
I/We hereby agree and bind myself/ourselves to be responsible for all
acts, quotations made and transactions done or effected by the said Mr.
/ Ms. ___________ as our Approved User on the Trading System of the
National Commodity & Derivatives Exchange Limited (NCDEX). I/We shall
ensure that he/she will not execute any order on his/her own account or
on account of anyone without such order having my/our prior approval
in writing. I/We further agree that I/We shall be responsible for any
risks, loss or claims/actions arising out of use of the said User ID and
shall not hold NCDEX responsible for any such risk, loss, claims or
liabilities arising from the use of the said User ID. I/We shall ensure
that the proposed Approved User Mr. / Ms. ___________ will not
function / place orders / deal on the trading system in any manner that
would represent that the trades have been placed as an Authorised
Person or a sub-broker. In case of the said Mr./Ms. ___________
ceasing to be associated with me /us as an employee, agent on
commission basis, trainee, client, Approved User or in any other
capacity, I/we shall communicate to you the same along with
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
related details and seek change in the User ID so allotted against this
application, as prescribed. I/We also confirm that the Approved User
shall clear such certification as may be prescribed by the Exchange from
time to time and within such period as may be prescribed by the
Exchange. The User ID so allotted may be withdrawn by the Exchange at
its discretion on the expiry of such period within which such Approved
User fails to obtain the certification. I/We certify that I/we have not
applied for any other User ID in the name of the said Mr. /Ms.
____________________. The User ID so allotted would be used by the
said Mr. / Ms. _____________________ only to access the NCDEX trading
system.
Director’s Signature 1. x
Director’s Signature 2 x
Stamp of applicant company
Stamp & Signature of the authorized
signatory of the Trading Member
Date:
____________________________________
Place:
DECLARATION BY THE USER (TO BE GIVEN SEPERATELY BY DIFFERENT USERS)
I hereby declare that I am aware and shall update myself about the
Rules, Bye-laws, Regulations and Circulars issued there under by the
Exchange from time to time. I agree to become an Approved User of M/s
________________________ (name of Trading Member). I would intimate
the Exchange upon ceasing to be an employee, agent on commission
basis, trainee, client, Approved User of or ceasing to be associated in
any other capacity with M/s _________________________________
(name of the trading member). I hereby agree to abide by the Rules,
Bye-laws, Regulations and Circulars issued by the Exchange that may be
in force from time to time. I understand that appropriate action may be
initiated against me by the Exchange in case of violation of the Rules,
Bye-laws, Regulations and Circulars issued by the Exchange. I certify
that I have not applied for any other User ID on the same segment for
which this User Id is now being applied for. I will not allow anybody else
to access / use the NCDEX Trading System using the User ID so allotted
to me.
I shall keep complete secrecy of the password.
Date:
Place:
( On the Letterhead of the Clearing member )
__________________________
Name and signature of User
Letter from Clearing member for agreeing to Clear the trades of TM
Date:
To
National Commodity & Derivatives Exchange Limited (NCDEX),
Akruti Corporate Park, 1st Floor,
LBS Road, Kanjur Marg (West)
Mumbai 400 078
Dear Madam/Sir,
Subject: Trading Member M/S _____________________________
We are Strategic Trading Cum Clearing Member (Membership Code:_________ FMC
regd. No._________) of your Exchange.
We confirm that M/s______________________________ who is a Trading Member of
your Exchange (TM ID__________ FMC Regn. No.___________) has entered into
clearing agreement with us for clearing and settlement of all trades, transactions, deals
done the said Trading Member on NCDEX.
We agree and undertake to act as Clearing Member of the said Trading Member under
Rules, Bye Laws and Regulations of the Exchange and to settle and clear all liabilities
and obligations in respect of trades, transactions and deals done by the said Trading
Member on NCDEX. We agree and undertake to perform all acts and activities required
to and incidental to clear and settle all transactions done by the said Trading Member.
A certified copy of the agreement executed between us as Clearing Member and the said
Trading Member in this regard is annexed.
We shall continue to act as Clearing Member for the said Trading Member till we
terminate the said Clearing Member – Trading Member Agreement in accordance with
the terms of the said agreement and inform such revocation in writing to the Exchange.
We shall comply with all the Rules, Bye Laws and Regulations of the Exchange and all
circulars/directions issued thereunder by the Exchange from time to time.
Yours faithfully,
For………………………………………………..
Authorised Signatory/ies with name, designation and Rubber seal