Class 12 FMM Chapter 1 notes | Part -3 | Capital market module | Class 12 Financial Markets Management
Hello guys these are notes of class 12 FMM, (Capital Market Module).
Chapter -1 , Part - 3
Admission Procedure for New Membership
1. Desirous applicant submits application for new membership to membership department.
2. Membership Department will send the application to Membership Recommendation Committee.
3. Membership Recommendation Committee will forward the application to Membership Approval Committee for interview.
4. Membership Approval Committee will forward the application to the membership department, if approved.
5. Membership department will forward offer letter of provisional membership to the individual.
6. Membership department will forward the document to SEBI for registration.
7. SEBI will forward the certificate to membership department for applicant.
8. Membership department will forward SEBI certificate to member.
9. Member will submit enablement document for trading access.
10. Member will be enabled on the trading system.
Surrender of Trading Membership
Surrender of trading membership can be permitted by the exchange after
1. Clearing off all the dues to the exchange and NSCCL.
2. Notifying all other trading members of the approval of surrender.
3. Obtaining 'NO DUES' certificate from SEBI.
4. Issuance of a public notification in newspapers.
If you want, more explanation of the concept ,CLICK HERE
There is a however, no lock in period applicable in case of trading member.
(a) Not SEBI registered.
(b) SEBI registered but not enabled
(c) SEBI registered and enabled but not traded at all.
NORMS AND PROCEDURES RELATED TO THE SURRENDER OF MEMBERSHIP TO THE EXCHANGE ARE PRESCRIBED AS BELOW :
1. The trading member who want to surrender his/ her trading membership will send an application.
2. The following aspects should be covered in the application :
If he has been suspended or any disciplinary action against him.
Any investigation?
If he is falling in category of associates.
If has any dues to Exchange?
If he has a claim of ₹10 lakh or more pending or not
Etc.
3. No trading member is eligible to be readmitted to the trading membership of the exchange in any form for a period of one year from the date of surrendering of trading membership.
4. Trading member who want to surrender his trading membership has to submit original SEBI registration certificate
5. All the leased line / VSAT or other equipments given to trading members will be dismantled.
6. Exchange should give the notice to newspapers.
7. A letter is also sent to SEBI seeking pending dues of the trading member.
8. If the trading member has to pay more amount then his deposits to the exchange he will be given 21 days of intimation and if he fails to do so we will be called in Higher appellate court.
Basis of Suspension of Membership.
(A) Misconduct :
fraud or fraudulent act
Violation of the provision
Improper conduct
Failure to submit to or abide by arbitration
Failure to submit audited accounts.
(B) Un Business conduct :
Business dealings in fraud names.
Circulation of rumours.
Unfair trading in securities.
Market manipulation and rigging.
Failure to carry out transaction with clients.
(C) Unprofessional conduct:
Business in securities in which dealings not permitted.
Business for defaulting clients.
Carry out business during suspension period.
Business for employees of other trading members.
Business with suspended, expelled and defaulter trading members.
(D) Trading member's responsibility for partners, agents and employees:
reading members fully responsible for the acts and omissions of a partner's authorise officials. For their mistake the trading member is liable to the same penalty to the same extent.
(E) Suspension on failure to provide margin deposit and/ for capital adequacy requirements:
The trading member shall remain suspended until he furnishes the necessary margin deposit or meet the capital adequacy requirements.
Full playlist of the Capital Market Module, CLICK HERE
Thanks for reading.
Mam pls provide me remaining notes of chapter 1
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