PROPUESTA DE MODIFICACIÓN DE VÍAS PECUARIAS

Introduction

SHCIL's long-standing association with Clearing Members has enabled it to develop services based on an understanding of their working and their requirement for timely and accurate information.

We accept deposits of base capital and Additional base capital requirements stipulated by NSE for clearing members trading on its capital market segment. Clearing members stand to earn a steady income from our product transactions and new adds to their client-base, while we capitalize on their rapport with the market.

We currently offer Depository services to more than 680 clearing members of various exchanges connected with NSDL and CDSL. Our Customer Care lines answer all your DP queries while the Interactive Voice Response (IVR) system gives you information on your account and other valuable data like CC calendar details, tariff, ISIN information, etc. via telephone, fax and e-mail.

Advantages

 For Institutional & Retail clearing members We have customized tariff for clearing members benefiting

o brokers having very high average trade value o brokers with big retail clientele

o CM Principal Accounts o NSCCL CM Accounts

o Unified Settlement Pool Accounts on CDSL.

 Our Customer Care help lines give timely and accurate information to CMs. The Interactive Voice Response (IVR) system at SHCIL gives round the clock information on holdings & transactions Pay in / Pay out details, overdue cum holding details, etc. via telephone, fax or e-mail.

 Updated Transaction Statements are available on the website FREE of any charge whatsoever. Members have a choice of accessing their statements date- wise for the last one month or settlement-wise for the same period. Current trading day transactions are also made available, updated to the hour.

 Besides the transaction statements, the Delivery-Out report, which is an extremely critical report for Clearing Members, is also made available on the website, updated to the hour.

Open an account – Requirements

 In case of Proprietor's account, if authorized signatory is a person other than the account holder, then Power Of Attorney is to be submitted by Proprietor giving authority to that person

If you are shifting from another DP to SHCIL

If you are opening a fresh Pool account .

Account opening form Account opening form • Board resolution

• Memorandum Of

Association

• Authorized Signatories (for corporate) • Board resolution • Memorandum Of Association • Authorized Signatories (for corporate)

indicating that it is for stockbroker. indicating that it is for stockbroker. • Closure Letter addressed to

old DP duly stamped and acknowledged by old DP. • Closure letter and Shifting

letter has to be on the letterhead of CM

• Closure letter should be duly stamped and acknowledged by old DP.

• Letter from Stock Exchange stating CC CM ID.

• In case of ISE mention on the letter :

Subject : Allotment of CC CM ID

Shifting Letter addressed to NSDL stating : • CM Name • old CM BP ID • old DP Name • New DP name. Custodial services

Custodial services for Base Capital / Additional Capital requirements

 We accept deposits of Base Minimum Capital (Base Capital) and Additional Base Capital as stipulated by NSE for clearing members to be able to trade on its capital market segment.

The securities being deposited shall be subject to legal and beneficial ownership of:

 TM clearing member / spouse in case of individuals  Any of the partners / their spouses in case of partnership.

 Any of the directors in case of corporate TM clearing member.

 The following securities can be deposited to qualify as deposit  Listed equity shares of approved companies subject to 15% margin

 Equity shares of Approved companies in demat form subject to 15% margin (Nifty Scrips) and 25% margin (30 other scrips pertaining to Junior Nifty group)

 Listed units of mutual funds subject to 15% margin

 Unlisted units of mutual funds subject to 15% margin of the NAV of the units prevalent on the last day of the preceding month

 Listed PSU bonds subject to 15% margin

 Other debt securities admitted for trading on Wholesale debt market segment of NSE subject to 15% margin

 Listed GOI / Treasury bills subject to 10% margin

 Units under Unit Scheme 1964 of UTI to be valued at the lowest of the repurchase prices prevalent in the preceding 12 months

Deposit of Fixed Deposit Receipts (FDRs) issued by approved Banks. In case of FDRs, the members have to submit the following:

 A Letter from the Bank in a specified format.  A Letter from the Member in a specified format  SHCIL Charges upfront

 National Savings Certificate and Kisan Vikas Patra issued by Post office,  SGL Securities,

 Certificate of Deposits (CDs) issued by Banks / Institution.

 NSE members may also pledge dematerialised shares in favour of NSCCL for security Base Capital and additional base capital requirements. The demat shares pledged by a member as additional base capital will be considered for

the purpose of gross exposure computation. In case of demat scrips, the following conditions apply:

Reporting

Among the host of reporting features offered by SHCIL, the notable ones are

 Online Transaction updates during the day.

 Online date-wise transaction reports, settlement number wise reports etc  Online redresses of queries through email

 Intimation of failed trades

 Settlement wise holding statements after payout  Faxes / Emails on specific request

 DO Reporting

Some of these highly specialized reports are provided to you ONLINE and FREE only by SHCIL.

Derivatives

Introduction

SHCIL is a Custodian/Professional Clearing Member of derivative segment at the Bombay Stock Exchange and at the Futures & Options Segment of the NSEIL respectively.

We have developed in-house Back Office systems and procedures to cater to the needs of various entities in the segment. A dedicated team of professionals handle derivative operations and assist its clients.

As a professional clearing member, SHCIL performs the following functions:

 Clearing - Computing obligations of all his TM’s i.e. determining positions to settle.

 Collateral Management - Collection of collateral (cash/cash equivalents and securities), valuation on a regular basis (as per J. R. Varma recommendations) and setting up exposure limits for TMs and Institutional clients.

 Risk Management - Setting position limits based on upfront deposits/margins for each TM and monitoring positions on a continuous basis.

Advantages

SHCIL has always been a pioneer in clearing and settlement services in the cash segment at both the exchanges. SHCIL has the capability to handle large volumes of business with greatest accuracy, keeping customer interests as the top priority.

SHCIL in its endeavor to serve various entities in the derivatives segment has developed indigenous solution keeping in view the strict regulatory requirements.

 Privacy of each TM’s operations strictly maintained: SHCIL being a professional clearing member has no trading interests in the derivatives segment. There is strictly no dissemination of information on trading or any other operation of any of its clients.

 In built checks and controls: SHCIL has indigenously designed systems that take care of the stringent regulatory requirements for derivatives trading in India.

 Collateral Management: SHCIL has excellent system to manage cash/cash equivalents/securities deposited as collateral for derivatives trading. Clients are informed as and when expiry of any instrument approaches. Securities are transferred in minimum possible time. Corporate actions on securities are monitored and clients are being informed accordingly.

 Confidentiality of Trades: Since SHCIL has no trading rights, the business details of a trading member are not likely to be misused .There is no overlapping of business interests.

 Focus: Due to highly competitive nature of the market, SHCIL’s service charges are normally very low and it makes more business sense for a TM to outsource the clearing and settlement activities and focus on the core business of trading.

Open an account – Requirements

 Agreement: The TM has to sign an agreement with SHCIL to clear his trade in the format prescribed by NSE/BSE and suitably modified by SHCIL. The agreement has to be signed before the TM begins his trading. A copy of the CM-TM agreement will be forwarded to NSCCL/BSE along with the agreement the trading member should also submit :

o Board Resolution appointing SHCIL as clearing member o Attested copy of Memorandum & Articles of Association o Copy of SEBI registration certificate

 Consent: At the application stage, a TM must mention that Stock Holding Corporation of India Ltd. (SHCIL) will clear his trades.

o Letter of consent from SHCIL can be obtained, which the TM has to forward to BSE/NSE as the case may be.

 Application Form: An application form provided by SHCIL, to be filled by TM, giving details of addresses, phones, accounts etc. Approved e-mail addresses should be mentioned in the application for receiving daily bills.

 MARGINS: Trading Members have to deposit margins with the Clearing Member for the purpose of taking Exposure on the Exchange and for daily settlement. At SHCIL, there are two components of

Margins i.e. initial margin (IM) for exposure and maintenance margin (MM) for daily settlement.

Initial Margin (IM)

Minimum Rs. 10 lakh as initial margin (IM) in either of the following ways:

 Entire Rs. 10 lakh in cash OR

 Rs. 2 lakh in cash and Rs. 8 lakh as cash equivalent * OR

 Rs 2 lakh in cash, balance Rs. 8 lakh as a combination of cash equivalent * and specified demat securities (subject to maximum of Rs. 5 lakh after valuation)

Note: The above proportion is valid for NSE. For BSE minimum cash requirements are Rs.2.5 lakh. BSE Members can start trading with Rs 7.50 lakh(Rs.2.5 lakh in cash, balance Rs. 5.00 lakhs as a combination of cash equivalent and specified demat securities (subject to maximum of Rs. 2.50 lakhs after valuation)

Maintenance Margin (MM)

A trading member has to deposit a certain percentage of initial margin (IM) in cash only towards his daily settlement of marked-to-market margins, premiums or any other charges payable by the TM.

Initial Margin(IM) ** Maintenance Margin (MM)

More than or equal to Rs. 50 lakh 10% of initial margin in cash only *** Less than Rs. 50 lakh 20% of initial margin in cash only

* Cash equivalent includes Bank guarantee, fixed deposit receipts or govt. securities (As per J R Varma Committee report on derivatives)

** The specified initial margin range should be for a period of at least one continuous month

** Subject to bank operating powers and banker’s certificate on credit limits for the bank account

Reporting

SHCIL provides various reports relating to the trading and settlement of its clients on its website .These reports can be downloaded by the client by using a unique PIN number and password. The main reports that are provided are :

 Daily trades reports

 Marked-to-market profit/loss reports  Collateral margin reports

 Account statements

 Outstanding position reports

 Span margins requirement report three times during the day based on the parameters specified by the exchange

 Monthly ledger reports and any other relevant report required by a client is also provided.