Become a Member of the BSE Derivative Segment
Derivatives Membership Guide
Types Of Membership
Professional Clearing Member (PCM)
- Who can become a member of the Derivatives segment as a PCM ?
Any individual/corporate can become a PCM subject to the networth criteria as per the format prescribed by LC Gupta committee report.
- What is the difference between Professional Clearing Member, Trading cum Clearing Member and Self-Clearing Member ?
The only difference between PCM and TCM is that PCM does not have any trading rights; he has only the rights to clear the trades. With respect to SCM, PCM is allowed to clear the trades of any member of the Derivatives segment where as SCM has trading rights and can only clear his own trades.
- What are the criteria and annual charges applicable for a Professional-Clearing Member of the Exchange ?
| Rs. 3 Crores (as per the format prescribed by LC Gupta committee report) |
| Rs. 50 Lakhs– (whole of Rs.50 lakhs can be given in the form Bank Guarantee/FDR/cash) (This amount is payable after SEBI registration is received and at the time of commencement of business in Derivatives Segment) |
| Demand Draft of Rs.50, 000/- drawn in favor of Securities & Exchange Board of India. |
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Trading Cum Clearing Member (TCM) / Trading cum Self Clearing Member (SCM)
- Who can become a member of the Derivatives segment as a TCM / SCM ? Any member of the cash segment of the Exchange is eligible to become TCM or SCM of the Derivatives Segment.
- What are the criteria of becoming a TCM / SCM of the Exchange ?
| Rs. 3 Crores for TCM (as per the format prescribed by LC Gupta committee report)
Rs 1 Crore for SCM (as per the format prescribed by LC Gupta committee report) |
| Rs. 50 Lakhs– (whole of Rs.50 lakhs can be given in the form Bank Guarantee/ FDR/cash) (This amount is payable after SEBI registration is received and at the time of commencement of business in Derivatives Segment) |
| Demand Draft of Rs.50, 000/- drawn in favor of Securities & Exchange Board of India.
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- What is the difference between Self-Clearing Member and Trading cum Clearing Member ?
The only difference between SCM and TCM is that SCM does not have the rights to clear the trades of other members he can only clear his trades, whereas TCM can clear the trades of any other member
Trading Member
- Who can become a member of the Derivatives segment as a Trading Member ?
Any member of the cash segment of the Exchange is eligible to become Trading member of the Derivatives Segment.
- What are the criteria of becoming a Trading cum Clearing Member of the Exchange ?
| Rs. 25 Lakhs (as per the format prescribed by LC Gupta committee report) |
| NIL – Please refer to Notice No.19 dated 15 June 2011 (Click Here) |
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Limited Trading Member
- Who can become a Limited Trading Member ?
Any member of NSE or a member of subsidiary company of RSE, who is a clearing member of the Derivative Segment, can become a Limited Trading Member of the Derivatives Segment.
- What are the rights and liabilities of LTM ?
- A person need not be a member of the Exchange in order to be eligible for registration as a LTM.
- A Limited Trading Member shall have rights, privileges, obligations & liabilities of a TM.
- Rules, Bye – laws, Regulations, BRS, guidelines & other provisions of the Derivatives Segment, Exchange & SEBI to apply to a LTM.
- A LTM is not entitled to voting rights.
- LTM to be registered with SEBI as TM.
- LTM to satisfy all the eligibility conditions specified by SEBI
- What are the requirements to become a limited trading member of the Exchange?
| Rs. 10 Lakhs (as per the format prescribed by LC Gupta committee report) |
| NIL – Please refer to Notice No.19 dated 15 June 2011 (Click Here) |
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For application forms refer "Booklet" which is available at a link on the top right hand corner of this page.
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