Registration of Members of Commodity Derivatives Exchanges
Summary
This circular mandates existing members of commodity derivatives exchanges to apply for SEBI registration within three months from September 28, 2015. It requires these members to meet specific eligibility criteria under the Securities Contract (Regulation) Rules by September 28, 2016. New members joining on or after September 28, 2015, must comply with both exchange membership rules and SEBI registration conditions.
Text
all existing members of commodity derivatives exchanges who satisfy the eligibility requirements for membership... shall be eligible to apply for registration to SEBI, within a period of three months from September 28, 2015.
Such existing members of commodity derivatives exchanges shall be required to meet the eligibility criteria as specified under Rule 8 of Securities Contract (Regulation) Rules, 1957... by September 28, 2016.
Any person desirous of becoming a member of any commodity derivatives exchange(s), on or after September 28, 2015, shall have to meet the eligibility criteria to become a member of an exchange and conditions of registration...
The application for registration shall be made in the manner prescribed in the Stock Broker Regulations, through the commodity derivatives exchange... along with the applicable fees.
The minimum net worth specified for members of commodity derivatives exchanges, as per Stock Broker Regulations, shall have to be computed as per the formula prescribed vide SEBI Circular No. FITTC/DC/CIR-1/98...
business in goods related to the underlying and/ or business in connection with or incidental to or consequential to trades in commodity derivatives... would not be disqualified under Rule 8(1)(f) and Rule 8(3)(f) of the Securities Contract (Regulation) Rules, 1957.
bring the provisions of this circular to the notice of the commodity derivatives brokers, self-clearing members and clearing members as the case may be, and also disseminate the same on their websites;
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above;
communicate to SEBI, the status of the implementation of the provisions of this circular.
Source: SecMarx — Registration of Members of Commodity Derivatives Exchanges. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.