Membership of Debt Segment

  • Any entity desirous of becoming trading member, self clearing member and/or clearing member / Professional Clearing member of Debt segment shall seek registration under SEBI (Stock Broker and Sub-Broker) Regulations, 1992. However, for an interim period of six months from the date of aforesaid SEBI circular or till the application for registration as per amended SEBI (Stock Broker and Sub-Broker) Regulations,1992 is refused by the Board or till cessation of membership, whichever is earlier, the transitional provisions shall be :-
    1. Institutional market of debt segment: Any existing registered trading member and/or clearing member/self clearing member in derivative segment or currency derivatives segment desirous of trading or clearing trades in Debt segment shall be permitted to trade or clear trades.

    2. Retail market of debt segment: Any existing registered stock broker/trading member and /or clearing member/self clearing desirous of trading or clearing trades in Debt segment shall be permitted to trade or clear trades.
  • Institutions such as scheduled commercial banks, primary dealers, pension funds, provident funds, insurance companies, mutual funds and any other investors as may be specified by sectoral regulators from time to time, can trade on the Debt segment either as clients of registered trading members or directly as trading member on proprietary basis only (i.e own-account trades only). Such institutions desirous of trading on own account only shall be given trading membership under SEBI (Stock Broker and Sub-Broker) Regulations, 1992 as proprietary trading member.
  • The Base Minimum Capital (BMC) for membership in Debt Segment shall be in line with Exchange circular no-827 (Download Ref No-NSE/MEM/23082) dated March 28, 2013, regarding “Requirement of Base Minimum Capital".
  • Existing members who have complied with the BMC requirements will be eligible to participate in the debt segment.
  • Existing members proposing to take Self Clearing / Clearing / Professional Clearing membership in Debt segment shall be required to deposit Rs. 1 lakh in cash as IFSD towards NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited) (NSE Clearing). However no deposit shall be payable in case a CM / SCM clears and settles trades only on gross basis for both securities and funds, where no settlement guarantee is provided by the NSE Clearing Limited (formerly known as National Securities Clearing Corporation Limited).
  • In case of existing members who are already a Self Clearing / Clearing / Professional Clearing member in any other segment and are paying fee of Rs. 50,000/ to SEBI, shall not be required to pay Rs. 50,000/- , separately for Self Clearing / Clearing / Professional Clearing membership in Debt segment.
  • New members obtaining membership on the debt segment will be required to comply with BMC requirement as stated by SEBI and there shall be no separate deposit requirement for National Stock Exchange of India Limited (NSE) apart from the BMC.
  • All new members who obtain Self Clearing / Clearing / Professional Clearing membership in Debt segment shall be required to deposit Rs. 10 lakhs with NSE Clearing and no exposure shall be provided against this deposit. No deposit shall be payable in case a CM / SCM clears and settles trades only on gross basis for both securities and funds, where no settlement guarantee is provided by the National Securities Clearing Corporation Limited.
  • New members obtaining Self Clearing / Clearing / Professional Clearing membership in Debt segment shall be required to pay a fee of Rs.50,000/- every year till their registration is in force. For the first financial year, the fee is required to be paid along with application for registration and for subsequent financial years before June 1st of that financial year.
  • Read more about networth requirements for membership in debt segment