Leading bourse National Stock Exchange (NSE) has asked brokers to submit networth certificate for margin trading by the end of this month to avoid any penalty.
In a circular, NSE said brokers will have to submit to the exchange half yearly networth certificate as on March 31 by May 31 "in order to avoid any delayed/non-submission charges."
It has also put in place a graded penalty mechanism for brokers who fail to make the required timely submission.
The fine of Rs 100 per day will be slapped for first month from the due date Rs 200 each day for second month after due date and Rs 300 each day for third month after due date and "thereafter the matter shall be placed before relevant authority for appropriate decision/actions."
As per norms, corporate brokers with a net worth of at least Rs 3 crore are eligible for offering margin trading facility to their clients.
Besides, NSE said that shortfall in networth would result in blockage of deposits.
Besides, in the senior management role, the candidate
should have played a leadership role, preferable in the financial sector, and have a demonstrable track record of success, it added.
Additionally, prior experience in managing diverse expectations from key stake holders, including investors, business partners, regulators, customers, employees, among others, is also required.
In a surprise move, Ramkrishna had on December 2 quit as Managing Director and CEO of the NSE with immediate effect, presumably over differences with some board members, after having served the premier bourse for over two decades since its inception.
Senior executive J Ravichandran has been given the interim charge till the NSE board, headed by former Finance Secretary Ashok Chawla, finds a full-time replacement for Ramkrishna, who rose through the ranks to head the exchange and was part of the team that set up NSE in 1992.
NSE's initial public offer is being keenly awaited in the market and is expected to be one of the biggest IPOs in recent times.
