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This document serves as an undertaking for professional clearing members to adhere to the rules and regulations set forth by the Ace Derivatives and Commodity Exchange Limited (ACE). It outlines the

How to fill out professional clearing membership undertaking

How to fill out PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING

1. Read the entire PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING document thoroughly.
2. Gather all necessary personal and professional information required for the application.
3. Complete each section of the document accurately, including your name, address, and contact details.
4. Provide details about your professional qualifications and experience relevant to clearing membership.
5. Sign and date the document to affirm its accuracy and your commitment to adhere to the terms.
6. Submit the completed document to the relevant authority or organization as instructed.

Who needs PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING?

1. Individuals or entities seeking to become professional clearing members in finance or trading environments.
2. Organizations or firms that plan to engage in clearing services for securities, commodities, or other financial instruments.
3. Professional traders who require formal membership in a clearing house to facilitate transactions.

People Also Ask about

What does it mean to be a clearing member?

Clearing Member (CM): This category of membership entitles a member to execute trades on his own account as well as on account of his clients and to clear and settle trades executed by themselves as well as by other trading members who choose to use clearing services of the member.

What is the difference between a clearing house and a clearing member?

A clearing house is often central counterparty to all trades on the exchange, that is, the buyer to every seller and the seller to every buyer. Clearing member: a member of a clearing house. All trades must be settled through a clearing member. A direct clearing member is able to settle only its own obligations.

What is the difference between clearing member and custodian?

Custodians are clearing members but not trading members. They settle trades on behalf of their clients that are executed through other trading members. A trading member may assign a particular trade to a custodian for settlement. The custodian is required to confirm whether he is going to settle that trade or not.

How to become a clearing member?

Clearing Member Eligibility Norms Net worth of at least Rs. 300 lakhs. Deposit of Rs. 50 lakhs to NSE CLEARING which forms part of the security deposit of the CM. Additional incremental deposits of Rs. 10 lakhs to NSE CLEARING for each additional TM in case the CM undertakes to clear and settle deals for other TMs.

How many types of clearing members are there?

In general, Clearing Members may be General Clearing Members and Individual Clearing Members.

What is a professional clearing member?

Professional Clearing Member (PCM): Professional Clearing Member (PCM) are clearing members who are not trading members. They are typically banks, custodians etc. who clear and settle trades executed for their clients (individuals, institutions etc.).

What is the role of a clearing member?

Clearing Member means a member of the Clearing Corporation who clears and settles deals through the Clearing Corporation. The Clearing Member clears and settles deals for a segment in a manner and mode and subject to such terms and conditions and procedures prescribed for them.

Who can become a clearing member?

Membership of the Exchange/ NSE CLEARING is open to corporate entities, limited liability partnerships, partnership firms and individuals who fulfill the eligibility criteria laid down by SEBI ,NSE and NCL.

For pdfFiller’s FAQs

What is PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING?

The Professional Clearing Membership Undertaking is a formal agreement that outlines the obligations and responsibilities of a clearing member participating in a clearing organization or financial market, ensuring compliance with regulatory and operational requirements.

Who is required to file PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING?

Entities or individuals that wish to become professional clearing members, typically firms involved in clearing financial transactions or trades on behalf of others, are required to file the Professional Clearing Membership Undertaking.

How to fill out PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING?

To fill out the Professional Clearing Membership Undertaking, applicants must provide accurate information regarding their business operations, financial status, governance structure, and compliance measures in accordance with the clearing organization's specifications.

What is the purpose of PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING?

The purpose of the Professional Clearing Membership Undertaking is to establish a framework for risk management, assurance of regulatory compliance, and to delineate the responsibilities of clearing members in the clearing process.

What information must be reported on PROFESSIONAL CLEARING MEMBERSHIP UNDERTAKING?

The information that must be reported includes details about the entity's financial stability, risk management policies, operational capabilities, compliance with regulations, and any relevant licensing or regulatory approvals.