Checklist for Sub-broker application |
Sr.No |
Documents |
Points to be noted while filing the application |
1. |
Application form for Registration with SEBI – ‘Form B’ |
Application form to be completely filled in. Whichever clause is Not applicable, please put N.A. It should not be on letter head of sub-broker or Trading Member. (Signed by Authorised signatory along with Board Resolution)
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2. |
Recommendation letter to be given by the Trading Member – Form C |
To be given by Trading Member on their letterhead. Complete SEBI registration No. of trading member is to be mentioned below the signature of the trading member. |
3. |
Copy of Agreement between trading member and sub-broker on stamp paper as per Cir. Ref. No. NSE/INSP/5387, Dt.27-AUG-2004 |
Agreement to be signed by broker as well as by Sub-broker & certified as true copy on all pages by Trading Member. |
4. |
Reference letter from the Applicant’s Banker ( Atleast 1 month reference required) |
It should be on a letterhead of the bank, account number with account opening date issued for applicant sub-broker. |
5. |
Reference letter from any other Third Party (Such as CA/CS/ Lawyer/Notary or other Stock Broker |
It should be on the letter head of CA/CS/LAWYER. Membership number of recommending CA/CS should be quoted. |
6. |
Declaration from Sub-Broker about Non-Conviction or presently not under trial for any offence (On the letterhead of the sub broker)# |
The Sub-broker applicant is required to give a declaration that he has not been convicted in the past and presently is not under trial for any offence involving fraud and dishonesty. In case of a corporate / Partnership firm, all the Directors/ Partners have to give such declaration individually for themselves and jointly for the company/firm. |
7. |
Undertaking from Sub-Broker about Dealing directly with investors and not with any unregistered intermediary. (On the letterhead of the sub broker)# |
The Sub-broker applicant is required to give an undertaking that he will directly deal with the investor and not with any unregistered intermediary. In case of a corporate / Partnership firm, all the Directors/ Partners have to give such undertaking individually for themselves and jointly for the company/firm. |
8. |
Confirmation from sub-broker that he has not applied through any other TM (On the letterhead of the sub broker)# |
The Sub-broker applicant is required to give confirmation that he has not applied through any other Trading Member. In case of a corporate / Partnership firm, all the Directors/ Partners have to give such undertaking individually for themselves and jointly for the company/firm |
9. |
Annexure J or K – Letter from Trading Member to NSE giving Undertaking about dealing in fake and forged shares by the sub-broker |
As per circular no 69 dated July 23, 1997 ref no NSE/MEMB/0311. To be given by Trading member on their letterhead. |
10. |
Annexure I – Letter from trading member undertaking to settle the obligations of the sub-broker
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As per circular no 63 dated June 25, 1997 ref no NSE/MEMB/0282. To be given by Trading member on their letterhead. |
11. |
Annexure O – Certificate from sub broker relating to shareholding pattern # |
As per circular no 513 dated February 9, 2006 ref no NSE/MEM/7157. This needs to be submitted by all sub-broker applicants including individuals on the letterhead. |
12. |
Annexure 3– Undertaking for “Fit & Proper Person” in the name of entity & its partners/Directors |
As per circular no 534 dated August 09, 2006 ref no NSE/MEM/7743. To be given by Trading member on their letterhead. |
13. |
Proof of address of sub broker Telephone Bill, Electricity bill, MOA, Bank pass book, Rent agreement. |
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14. |
Annexure L – For Firms/Corporates – Sharing Pattern $ |
As per circular no 168 dated May 19, 2000 ref no NSE/MEM/1708. It should be certified by C A & signed by all partners/directors. |
15. |
Registered Partnership Deed/ MOA & AOA Along with the Certificate of Incorporation $ |
Memorandum of Association of corporate should consist the object clause that corporate can act as a sub-broker. |
16. |
List of directors of sub broker as on specific date to be certified by CA/CS.$
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In case of any changes in directors from date of incorporation such list needs to be provided. |
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Eligibility Criteria |
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17. |
Qualifications proof –Minimum H.S.C. |
In case of proprietor /partner/director copy of H.S.C. passed mark sheet. For applicants having qualification less than H.S.C., proof of the educational qualification & experience certificate in Capital Market as an employee/dealer for more than 2 years. |
18. |
Proof of age (To be above 21 years of age for all the partners/ directors) |
In case of proprietor/partner/director, copy of PAN Card/Driving Licence/School leaving certificate/SSC Certificate certified by Trading Member is required. |
19. |
Proof of name change |
If applicable (Certified Copy of Marriage Certificate/ Affidavit) |
20. |
Applicant/ Any Shareholder/ Partner/ or Director holding more than 10% is
- Not a Trading Member of the Exchange
- Not a registered Sub-broker of any other Trading
Member
- Not having a cross holding of 10% or more with any
other Trading Member/Sub-Broker/Authorised Person
- Not a shareholder/ Partner of a registered Sub-broker
- Not a director/partner/proprietor of any other trading
member
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21. |
Sub-Broker/ Any Shareholder/ Partner/ Director is:
-Not a defaulter in any other Stock Exchange.
- Not appearing in SEBI debarred Directors/ Vanishing
Companies List
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22. |
Trading Member is not disabled or suspended or any disciplinary action has been taken |
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23. |
Not appearing in CIS and Non CIS list |
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24. |
Not appearing in CIBIL database |
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