Saurashtra Kutch Stock Exchange Ltd.
 ( Erstwhile ) was incorporated in the month of July 1989 and got recognition from the Govt. of India. The recognition have been renewed from time to time by the Central Government and SEBI.

 
 
 
 
 
Membership
Membership
 

Only Members of Saurashtra Kutch Stock Exchange Ltd. ( Erstwhile ) (SKSEL) duly registered by SEBI can become a member of SKSE SECURITIES LIMITED.

The member will have to get them registered with SEBI as sub-broker of SKSE SECURITIES LIMITED (SKSESL) for trading in BSE/NSE.

SKSESL may register members of SKSE as authorised persons / remisiers for trading in Futures & Option segment of BSE and / or NSE and can also register them as clients. SKSESL may also register clients introduced through such authorised persons only and may trade on their behalf.

SKSESL would not trade for investors directly, except for Futures & Option Segment of BSE and / or NSE.

They will be allowed to trade in all the segments of respective Stock Exchanges after completing necessary formalities as may be described by the SKSESL from time to time.

All such registered members would be the authorized users for the BSE's BOLT or Intermediate Messaging Layer (IML) and/or NSE's NEAT or Computer-To-Computer Layer (CTCL) connectivity and trading system through SKSESL as may be permitted by SKSESL.

Registered members may also open branch offices, where they may appoint additional authorized users attached to them, for which the member would be responsible for the obligations created in the market and also for all the legal issues arising out of it.

Each such Registered member would be given a login ID for the purpose of trading on the BSE/NSE segment as may be requested by the member and on the completion of the necessary formalities laid down by SKSESL from time to time.

Every Registered member would be allowed to have normal/additional login Ids after following necessary procedure specified by SKSESL.

 

New Membership
 

1. Every new member will have to pay Non-refundable Rs 50,000/- to the company towards the Hardware/Software contribution and admission fees.

  • A member will have to Deposit Rs. 2 lacs (cash) Additional Advance Margin Rs. 1.5 lacs (cash).
  • Cash/FDR(duly lien by the bank in favour of SKSESL)/Bank Guarantee/ Securities of Rs. 2 lacs towards Advance Margin for trading in the first exchange.
  • Additional Rs 2.00 lacs (cash) for trading in every additional Exchange by way of cash through cheque or DD to SKSE Securities Ltd before starting his business.
  • All the cash deposit will not bear any interest.

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Trading Limites :
 

TURNOVER & GROSS EXPOSURE LIMITS: Registered members /clients will be given Turnover and Exposure limits per the rules and regulations of the stock exchanges (BSE/NSE)/ SEBI on the total available clear Deposits/Advance Margin maintained in the segment of the exchange with SKSESL for trading in the respective Stock Exchange.

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Charges :
 

The Cost of trading will be as follows :

  • BROKERAGE @ Rs. 0.0075% of the transaction value (minimum Rs 0.01 per trade)

Further the registered Member shall be required to pay the following charges on actual basis from time to time as may be applicable.

  • SEBI Turnover fees (0.01% or as may be specified by SEBI from time to time)
  • Stamp Duty charges 0.01%
  • BSE/NSE transaction charges on actual.
  • Service Tax @ as may be applicable from time to time on the amount of brokerage charged.

Above charges will be debited in the Settlement Bill. Members will have to also bear connectivity charges of respective Stock Exchanges on actual basis and any other statutory charges that may be levied on to the company by competent authority from time to time will have to be borne by the members on actual/cost sharing basis

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MARGIN
 
  • SKSE Securities Ltd will be collecting margin on the pattern on which BSE and or NSE are collecting the margin in the respective trading segment. However, the deposited margin may be released for meeting Pay-In obligations of the member.


  • SKSE Securities Ltd of its own can impose any additional margin on any scrip / Registered Members over and above margin charged by BSE and or NSE on its own discretion.


  • SKSE Securities will also have right to restrict trading in any scrip at its sole discretion as may be decided by the authorities such as Board of Directors, Committee, Executive Director / Chief Executive Officer.


  • SKSE Securities can restrict turnover quantity and or outstanding quantity in any scrip as may be decided from time to time by authorities such as Board of Directors, Committee, Executive Director / Chief Executive Officer.


  • Member will have to pay margin on or before time as may be decided by authorities from time to time. Generally, the member will have to pay before 12.00 noon of next day.


  • Credit of Early Pay-In of delivery obligations may be given to the members as per the rules of the respective stock exchanges (BSE/NSE).


  • Amount of Advance Margin lying with SKSE Securities Ltd will be given credit from the amount of margin calculated and balance margin amount if any will have to pay within time.

 

Pay-in / Pay-Out
 
  • Member will have to clear their Pay-In obligations as per the schedule of SKSESL for its scheduled Pay-In obligation of BSE/NSE and/or as the case may be (normally one day prior to BSE/NSE's schedule Pay-In).


  • SKSE Securities Ltd will release pay-out of funds after payout is declared by BSE/NSE / receipt of pay-out amount in its bank account.


  • The above mentioned pay-in / pay-out schedule is subject to change at sole discretion of SKSE Securities Ltd., from time to time.

Any member who fails to make his pay-in amount will have to face following consequences.

  1. First pay-in default, his trading terminal will be closed until he clears his pay-in dues. Moreover, he will have to pay penalty @ 4% (2% penalty) + 2% interest per month for the period for which his pay-in is delayed. Minimum penalty amount will be Rs. 1000.


  2. For 2nd and subsequent day in defaults, his trading terminal will remain closed for full days till pay-in dues are cleared.
    Interest @ 4% (2% penalty) + 2% interest will be charge for the period for which member's terminal remains closed.
    Before starting trading after second or subsequent pay-in default the member will have to pay additional Rs. 1 lac deposit which will be non-interest bearing and non-refundable for a period of 3 months. Such deposit will have to be paid for default of every settlement pay-in.
Contract Notes And Bills :
 

At the end of each trading day, SKSESL would be generating contract notes separately for each Registered Member for their trades executed through SKSESL on the BSE/NSE separately for all the segments, giving therewith the contract numbers. These Digitally signed Contract Notes / Bills through NSE-IT Software would be downloaded in an electronic mode through appropriate connectivity (FTP/E-mail) after close of the market and after doing necessary processing at SKSESL to the TWSs of the Registered Members or to such other convenient locations to which the Registered Members have access.

These document / file downloads giving the contract numbers may be used by the Registered Members for generation of confirmation memos / purchase or sale notes to be given to their clients. In addition to this, SKSESL would also be sending the hard copies of the Contract note, as per statutory requirements wherever required. Similarly, Bills would be generated/printed and distributed/downloaded at the end of the Settlement after receiving necessary files from respective Stock Exchanges and after completing necessary processing at our end.

Bank :
 

SKSESL has opened its clearing accounts for BSE and NSE with the Bank of India, Stock exchange Branch, Mumbai as the primer Banker for the purpose of funds clearing with regards to obligations on the BSE/NSE.. The registered Members would be required to open an account with Bank of India, Panchnath Branch, Rajkot for fulfilling their obligations on the BSE/NSE market. All the registered Members will have to open necessary account as per the guidelines of respective Stock Exchange and/or SEBI.

Beneficiary Acoount With D.P :
 

Every registered Member would be required to open a Beneficiary Account with our own CDSL D.P. at Rajkot for the purpose of effecting delivery, pay-in and for receipt of securities at the time of delivery pay-out by SKSESL.

At present, SKSESL has made an arrangement with SHCIL to provide stock lending facility to SKSESL and its Registered Members. The Registered Members could, if they so desire, avail this facility after completing the necessary formalities in this regard on such terms and conditions, as may be decided by SKSEL/SKSESL from time to time. However, all the charges of SHCIL and service charges to SKSESL will have to be borne by the registered Members.

The Registered Members would be required to adhere to the settlement schedule specified by SKSESL for completing the daily and settlement obligations. This schedule, which would be in the form of a Settlement Calendar would be intimated in advance. The general rule governing this schedule would be that pay-in of funds and deliveries would be completed 24 hours before the scheduled time of BSE/NSE as per the guidelines of SEBI in this regard.

Normally funds and securities pay-out would be declared by SKSESL on the same day on which the same are declared by BSE/NSE.

In case there are any short deliveries, due to which auction of securities are conducted by BSE/NSE against SKSESL, none of the other Registered Members can participate in the auction session for that particular security, as per the current BSE/NSE rules.

In case of securities pay-in shortage, the defaulting seller would be debited with a valuation debit of respective Stock Exchange. Also a penalty would be charged by SKSESL for such default.

In case of an internal shortfall in delivery of securities (i.e. where a Registered Member fails to deliver a particular security to another Registered Member, as a result of the netting off of positions within SKSESL), the obligation in such securities shall be deemed to be closed out at the close-out price (highest price prevailing in BSE/NSE from the first day of the relevant trading period till the day of close out or 20% above the closing price on the auction day, whichever is higher) and respective debit / credit will be effected in the statements of the relevant Registered Members. The defaulting seller would be additionally debited with the applicable penalty charges imposed by SKSESL.

Defaults :
 

If a Registered Member defaults in fulfilling his margin or settlement pay-in obligation on schedule or he exceeds his prescribed trading / exposure limit, SKSESL could impose additional deposit requirement or can reduce his trading/exposure limit.

In case of a default in payment of margins, a Registered Member may be allowed only reduced trading limits or his positions may be squared off by SKSESL or he may be allowed to only square off his outstanding positions or such other restrictions may be imposed on him by SKSESL, as deemed fit.

If a Registered Member defaults in his pay-in or any other obligation imposed on him by SKSESL, as per the scheduled date and time, action could be initiated against him as given below:

  • All outstanding positions could be squared off


  • demand could be raised for additional deposit


  • could be restrained from further trading


  • could be declared a defaulter and not be allowed to trade any further. (This would also result in him being declared a defaulter on SKSEL). Further, if the defaulter is also a member of any other Stock Exchange, he would render himself liable for declaration as defaulter on such other Exchange too.

all the Bank Guarantees, FDRs, Shares and/or any other deposits or assets of such member lying either with SKSESL or SKSEL will be invoked, realised and/or encashed and such realised amount will be adjusted against pay-in default and other liabilities of such defaulting member. Even membership right of such member will also be auctioned for such defaults if required.

 
 

The trading software for BSE's BOLT or IML Software of reputed vendor, NSE's NEAT or CTCL Software of reputed vendor would be provided by SKSESL at a charge that may be finalized by the Board.

The software for Back-Office operations will have to be purchased by the registered Members on their own. SKSESL would not be responsible for any problems arising out of the errors in Back-Office Operation.

Registered Members may be suspended from further trading in case of violations of any of the Business Rules or as per the decision of the management of SKSESL or SKSEL, for such periods of time, as may be decided from time to time. If and when a Registered Member is suspended by SKSESL or SKSEL, all his pending orders in the system would be deleted / returned to him. Further, the pay-out / delivery-out of any Registered Member may be stopped / withheld in case of any violations or due to the decision of SKSESL or SKSEL management and the Registered Member would be liable to bear all costs which may be attached to this decision.

The Registered Members are required to maintain books of accounts, records of its operations as per guidelines of SEBI which would be inspected by SKSESL or SKSEL officials or any other entity to whom this authority is delegated, as per the instructions of SKSESL, SKSEL or BSE/NSE/SEBI. The Registered Members would be required to help them in conducting this inspection and provide them with all relevant data and also access to their records for completing this work as per the requirements of respective Stock Exchanges. Further, the Registered Members would be required to furnish such undertakings, indemnities or declarations as SKSESL, SKSEL or BSE/NSE/SEBI may communicate from time to time.

The Registered Member is required to adhere to the Business Rules, circulars or such other communication, guidelines, rules, regulations specified by SKSESL, SKSEL, BSE/NSE or SEBI for the operations of a sub-broker. In case of any violation, he would be liable for such disciplinary action as specified by SKSESL, SKSEL, BSE/NSE or SEBI.

The Registered Members would be liable to the same disciplinary provisions as specified in the Business Rules of SKSESL. Modifications may be considered to meet the specific requirements of BSE/NSE/SEBI.

All communication would be sent to the Registered Members at their Registered Office or such other office as intimated to SKSESL as his communication address, in such mode as opted by SKSESL, by way of registered post, courier or in any electronic form to his TWS or such other communication mode (internet, FTP etc.) This communication could be a download of obligations or circulars or any such other communication which SKSESL is required to give to the sub-brokers. The Registered Members would be bound by such communication and this would be considered as valid communication.

Any decision taken by the Board of Directors, Committee, Executive Director / Chief Executive Officer or such authority will prevail.

Any permanent alterations in the business rules will have the approval of the Board of Directors and the same will be informed to all the members from time to time.

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