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A. Categories & Eligibility Criteria to become a Clearing Member
|Particulars||Professional Clearing Member (PCM)||Strategic Trading cum Clearing Member(STCM)||Trading cum Clearing Member (TCM)|
|Definition||PCMs shall be the Members admitted as such by the Clearing Corporation who shall be entitled to clear and settle trades/transactions done by the other members of the Concerned Exchange viz. TCMs or TMs affiliated with them. PCMs are not allowed to trade on the Concerned Exchange platform.||STCM registered with the Clearing Corporation and Concerned Exchange may, in addition to existing rights and responsibilities as TCM, shall be entitled to and liable to settle and clear the trades/transactions done by the Members affiliated with it viz. TCMs or TMs||TCMs shall be the Members admitted as such by the Concerned Exchange and Clearing Corporation who shall be entitled to trade on Concerned Exchange on behalf of their constituents/clients and/or on their own account and shall also be entitle to clear and settle all such trade done by them.|
|Eligibility||1.Body Corporate , Corporations or institutions incorporated under Companies Act, 1956 and 2013
2.Scheduled Commercial Banks
|1.Companies, Corporations or institutions incorporated under Companies Act, 1956 and 2013||1. Individuals
2. Sole Proprietorships
3. Partnership Firms Registered under Indian Partnership Act, 1932
4. Limited Liability Partnership firm (LLP) registered under limited liability partnership Act,2008
5. Companies, Corporations or institutions incorporated under Companies Act, 1956 and 2013 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
6. Such other persons / entities as may be permitted by the relevant authority of NCDEX/NCCL.
|Minimum Age of Individual/Proprietor /Director/Partner||21||21||21|
(Individual/Sole Proprietor /one of the Directors/one of the Partners)
|Graduate & above||Graduate & above||Graduate & above|
( Designated Partners/ Designated Directors)
|12th Pass or HSC or equivalent qualification||12th Pass or HSC or equivalent qualification||12th Pass or HSC or equivalent qualification|
|Experience (Individual / Sole proprietor / Designated Partners/ Designated Directors||Minimum 2 years’ experience in commodities/securities market||Minimum 2 years’ experience in commodities/securities market||Minimum 2 years’ experience in commodities/securities market|
|Fit and Proper Requirement for Individual / Sole proprietor /Managing Partners / Designated Partners / Designated Directors||As per the criteria specified under SEBI (Intermediaries) Regulations, 2008||As per the criteria specified under SEBI (Intermediaries) Regulations, 2008||As per the criteria specified under SEBI (Intermediaries) Regulations, 2008|
|Paid Up Capital||Rs. 30 Lakhs||Rs. 30 Lakhs||Rs. 30 Lakhs|
B. Person Not eligible to become a Clearing Member.
No person shall be admitted as a Clearing Member of the Clearing Corporation if such proposed member:
a) Is an individual who is not a citizen of India:
b) Is a body corporate which has committed any act which renders the entity liable to be wound up under the provisions of the law;
c) Is a body corporate which has had a provisional liquidator or receiver or official liquidator or insolvency resolution professional appointed.
d) Has been adjudged bankrupt or a receiving order in bankruptcy has been made against the person or insolvency resolution professional has been appointed, the person has been proved to be insolvent even though he has obtained his final discharge;
e) Has been convicted of an offence involving a fraud or dishonesty;
f) Has compounded with his creditors for less than full discharge of debts;
g) Has been at any time expelled or declared a defaulter by any other Commodity / Stock Exchange / Clearing Corporation;
h) Has been previously refused admission to membership of Concerned Exchange unless the period of one year has elapsed since the date of rejection;
i) Incurs such disqualification under the provisions of the Securities Contracts (Regulations) Act 1956, (Stock Exchanges and Clearing Corporations) Regulations, 2012 made thereunder as disentitling such person from seeking membership of a Concerned Exchange/Clearing Corporation.
j) Exchange/Clearing Corporation determines that it is not in public interest to admit him as Member of Exchange/Clearing Corporation.