MEMBERSHIP DEPARTMENTCIRCULAR

 Circular No: 14-15 /ISE/MEM/04 October 30, 2014 Dear trading members,

Sub: Submission of Annual Return for the financial year 2013-2014

Trading members are hereby requested to submit Annual Return i.e. Balance sheet, Profit & Loss Account, Auditor’s Report, Net-worth Certificate, shareholding/sharing pattern, details of proprietor/ directors/partners, etc. for the financial year ended on 31st

March 2014, as per formats given below.

Further, trading members are requested to note that:1. Annual Return is required to be submitted in physical form.

2. Trading members having accounting year ending on a date other than March 31, 2014, are required to submit the Annual Return within a period of 6 months from the end of the accounting year followed by such trading members. Also, such trading members are required to inform the Exchange about the different accounting year followed by them.

Trading members may submit the requisite documents in respect of Annual Return at any of the regional offices of the Exchange and obtain an acknowledgment for the same.

For any assistance, trading members may please contact the following officials of the Exchange:

Name of Official Extension Number

Board LineNumber

Direct Line Number

Ms. Simi Mohanan 11767941100

67941117/ 67941121Mr. Sageer Khan 121

Mr. Arun Mishra 114 67941114

For Inter-connected Stock Exchange of India Ltd.  

(Sageer A. Khan)Membership and Listing

Body Corporate/ Individual/ Partnership Firm(To be provided on the Letterhead of the Trading Member)

Checklist for submission of Annual Return Name of the Trading Member

SEBI Reg. No. (INB24…..)

PAN :

DIN

1

2

TIN :3

4

Year of Incorporation

Email ID1)

2)

REGISTERED OFFICE DETAILS   Address  City  Pin Code  Phone Number  Mobile Number  Fax Number  CORPORATE OFFICE DETAILS  Address  City  Pin Code  Phone Number  Mobile Number  Fax Number  Name & address of the present Auditor/s with Tel Nos.:Annual submission for the year ended

Sr.No

Document Type Description Remark

1 #Annual Accounts

Audited Balance Sheet, Profit & Loss Account, Schedules and Notes to

Accounts, Directors Report, Auditors Report

2 #A-1 Net worth certificate along with the relevant computation

3 ##A-2 Details of membership on other stock exchanges & details of listing

4 ##A-3 Details of Directors

5 ##A-4 Details of Shareholding Pattern & Dominant Group of Body Corporate

6 ##A-5 Undertaking(s) of Relatives in support of the Dominant Group

7 ##A-6 Details of Partners, sharing pattern & dominant group of partnership firm

8 ##A-7 Details of Proprietor

9 ##A-8 Details of Compliance Officer

10 #A-9 Turnover and SEBI Fees details

11 A-10 Undertaking stating No Changes in Documents A-2 to A-8

# Submission of these documents is mandatory for all the members.

## Regarding submission of documents A-2 to A-8 in the situation mentioned below, the trading member may submit document A-10 instead of submitting documents A-2 to A-8, as may be applicable:

As per trading member’s records, details of documents A-2 to A-8 as on March 31, 2014 are exactly the same as per the submissions of above documents made by the trading member as on March 31, 2013. (Provided that the trading member has submitted the said documents A-2 to A-8 as on March 31, 2013.)

Signature and seal of the trading member entity Place:___________(To be signed by Compliance Officer / Director/ Proprietor/ Partner)

Name of the Person Signing Date:___________

Auditor’s Report

The auditor should submit his report in the following format:-

We have audited the attached balance sheet of M/s ………………………………..…as at ………………….. and the profit and loss account for the year ended on that date annexed thereto and report that;

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion, proper books of account and records as specified in Rule 15 of the Securities Contracts (Regulation) Rules, 1957, have been kept so far as it appeared from our examination of such books.

c. The stock broker has complied with the requirements of stock exchange so far as they relate to maintenance of accounts and was regular in submitting the required accounting information to the stock exchange.

d. The balance sheet and the profit and loss account referred to in this report are in agreement with the books of account.

e. In our opinion and to the best of our information and according to the explanation given to us, the said balance sheet and the profit and loss account read together with the notes thereon give a true and fair view in so far as it relates to the balance sheet, of the state of affairs of M/s …………………………………., and in so far as it related to the profit and loss account, of the profit of M/s ……………………………….…. for the year ended on that date.

Date: For,Chartered Accountants

Place: Membership No.

Note:

Note: Kindly enclose Balance sheet and profit & loss account duly certified by the C. A. in original for the year ended 31st March / 30th September 20__.

For Individual/Partnership Firms/ Corporate

ANNEXURE – A1(To be provided on the Letterhead of the certifying Chartered Accountant/ Practicing Company

Secretary)

Format of Networth Certificate

This is to certify that the networth of _________________________(TRADE NAME/FIRM NAME/COMPANY NAME) as on March 31, 2014 as per the statement of computation of even date annexed to this report is Rs._______/- (in figures) [Rupees __________________________ only (in words)].

___________________________ (TRADE NAME/FIRM NAME/COMPANY NAME) is also member(s) of ______________________________ [name(s) of the stock exchange(s)], wherein the networth requirement(s) is/are as given below:

S. No. Name of the stock exchange(s) Networth

requirements (Rs.)

___________________________ (TRADE NAME/FIRM NAME/COMPANY NAME), as required by SEBI under the multiple membership criteria, satisfies the networth requirement of Exchange/ISE and each of the stock exchange(s) as stated above separately.

We also certify that ___________________________ (TRADE NAME/FIRM NAME/COMPANY NAME) is not engaged in any fund-based activities or business other than that of securities. Existing fund based assets, if any, have been divested from the books of account and have not been included for the purpose of calculation of networth.

It is further certified that the computation of networth based on my/our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.

Place: For (Name of Accounting Firm)

STAMP OF AUDITOR

Name of Partner Chartered Accountant

Membership Number

STATEMENT OF COMPUTATION OF NETWORTH OF __________________ (TRADE NAME/ FIRM NAME/ COMPANY NAME) AS ON MARCH 31, 2014

Particulars Rs. Rs.1. Capital (Paid-up) ****2. Free Reserves (excluding revaluation reserve) ****3. Market Value of securities forming part of the

Balance Sheet ****Less: Book Value of these securities **** ****

4. SUB-TOTAL (Items 1+2+3) ****

Less:

5 Miscellaneous Expenditure ****6 Deferred Expenditure ****7 Accumulated Losses ****

8. SUB-TOTAL (Items 5+6+7) ****

9. TOTAL “A” [Item 4(-) Item 8] ****

Less: Non-Allowable Assets

10. Value of trading membership/trading right (Exchange card), if included as an asset ****

11. Market Value of pledged securities to theextent of actual borrowings ****

12. Value of securities not listed on any stock exchange ****13 Doubtful Debts/Advances not provided for ****14. Intangible assets like goodwill, etc. ****15. 30% of the Market Value of Securities ****16. 10% of the Value of Government Securities ****17. All dues which are older than 3 months & ****

advances given to associates ****18. Fixed Assets (not used for the purpose of

business) including land and building ****19. TOTAL “B” (Items 10 to 18) ****

20. NETWORTH [“A” (-) “B”] ****

Notes:

i Networth should be minimum Rs.4.00 lakhs for Proprietorship/ Individual, Rs.10.00 lakhs for Body Corporate and Rs. 8.00 lakhs for Partnership Firm.

ii Negative networth should be preceded by a (-) sign, i.e. minus sign.iii In case of proprietorship concern, capital means Net Balances in Proprietor Capital Account

(Fixed + Current Capital account).iv In case of body corporate, capital means paid-up capital (equity + preference). However, if

preference capital is repayable within a period of one year, then it should be excluded.v In case of Partnership Firm, capital means the total of the capital contributed by each partner.vi Market value of securities should be taken as of the date of networth certificate or the latest

market value available before the date of certificate.vii Investment in securities of unlisted (unquoted) companies should not be considered at Item

No.3 above.viii Contingent liabilities should be mentioned by way of note, specifying the amount and nature

of liability.ix Any unpaid statutory liability, government dues, taxes, etc. in dispute or in appeal or not

provided for should also be mentioned by way of note, giving full details such as amount and nature thereof.

x In case of borrowings, the details of installments overdue towards principal and interest should also be given by way of a note.

xi The word “advances” at 17 above should include loans/advances given to related entities, sister concerns, firms/companies in which the applicants are interested directly or indirectly and should be included in Item 17 above, even though the same are less than three months old.

xii The amount of debtors arising from securities operations and others should be shown separately by way of a note.

xiii Miscellaneous expenditure and deferred expenditure means expenditure capitalised and to the extent not written off or adjusted as on the date of the networth certificate.

xiv Chartered Account certifying the networth certificate should give suitable notes explaining the various assumptions he has made and deviations made (if any), from the above guidelines/notes.

xv Any other information, which to the knowledge of the Chartered Accountant will materially affect the networth of the applicant, should also be mentioned by way of a suitable note to the Certificate.

xvi All the notes, workings, statement of computation of networth annexed to the Certificate should be signed by the Chartered Accountant with seal.

Body Corporate/ Individual/ Partnership Firm

Annexure -A2

(To be provided on the Letterhead of the Trading Member)

Details of Membership on other Stock Exchanges & Details of Listing

PART IDetails of other stock exchange memberships held by trading member entity, holding company,

subsidiary company, promoters, directors & partners as on 31/03/2014

Sr.No

Name Relation Stock Exchange

Name

SEBI Registration

No.

SEBI Registration

Date

Segment Mode of acquisition

Remarks

123

PART IIDetails of listing on stock exchanges (not applicable for Individual/ Partnership Firm)

Sr. No. Name of the Stock Exchange(s) on which company is listed Listed since (date)

123

Date: Signature of Compliance Officer / DirectorPlace: Name of Person Signing NOTES:1. If not a member of any other stock exchange, please mention ‘Not Applicable’ in the first row

Please Indicate:2. Where company is member of other stock exchange - Self Where director of company is member of other stock exchange - Director Where partnership firm is member of other stock exchange - Partner Where sole proprietor is member of other stock exchange - Self

Body Corporate Annexure - A3

(To be provided on the Letterhead of the Member) (Details of Directors)

DETAILS OF DIRECTORS AS ON 31/03/2014Sr No

Name Experience (Name of the Organisation/No. of years)

Education (Graduate & above /Below graduate)

PAN No.

Quali-fication

Designated director / (Yes/No)

EquityShare holding

Preference Shareholding

Date ofBirth

ResidentialAddress

ContactNo.

Father’s Name

Directorships/ shareholding

in other cos.No. Amt % of total

No. Amt % of total

123

NOTES :1. All initials to be expanded (full name to be indicated)2. Experience only in (i) securities market, (ii) as investment consultant, (iii) as portfolio manager, be indicated.3. (1) Against each director, please state whether he is designated director or not by indicating ‘Yes’ or ‘No’. (2) There must be atleast two designated directors. (A designated director shall be a graduate by qualification and possess atleast 2 years of

experience in (i) securities market, (ii) as investment consultant, (iii) as portfolio manager). (3) Please note that a trading member may have more than 2 designated directors. (4) Any appointment/resignation of a designated director requires prior approval of the Exchange

Date: Signature of Compliance Officer / Director Place: Name of Person Signing

CERTIFICATE

This is to certify that the details of directors of M/s ______________ as given above is based on my/ our scrutiny of the books of accounts, records and documents are true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.

Place: For (Name of Certifying Firm)Date:

Name of PartnerChartered Accountant / Company SecretaryMembership Number

CorporateAnnexure –A4

(To be provided on the Letterhead of the Member)(Details of Shareholding Pattern & Dominant Group of Body Corporate)

SHARE HOLDING PATTERN & DETAILS OF DOMINANT GROUP as on 31/03/2014PART I – DOMINANT PROMOTER GROUP

Sr No Name of dominant shareholder

Person (s) supporting dominant shareholder

Relation No. of shares held

Face value per share (Rs.)

Total Amt paid up

% of Total % of Total

              Self Relatives  1 A              A1                A2              

Sub-total2 B                B1                  B2              

Sub-total3 C                  TOTAL DOMINANT PROMOTER GROUP HOLDING (A)        

PART II – NON DOMINANT GROUPSr Name of shareholder No. of

shares held

Face value per share (Rs.)

Total Amt paid up % of TotalNo

4 D                           5 E                           6 OTHERS            TOTAL NON DOMINANTGROUP HOLDING (B)GRAND TOTAL (A) + (B)            100%

1. All initials to be expanded (full name to be indicated)2. Please specify relation of person supporting dominant shareholder (e.g. Wife, Husband, Brother, etc.)3. For arriving at the shareholding of persons constituting the dominant group, the shareholding of close relatives, namely parents, spouse, children, brothers and sisters only may be counted provided these relatives have given an irrevocable, unconditional support in writing in the prescribed format to the Exchange.

NOTES:1. In case of all corporate bodies in the dominant promoter group of the trading member entity, the details of their shareholding shall also be

furnished in the same format as given above 2. In case of HUF, please give names of Karta and co-parceners. 3. Persons holding 2% or more of the paid up capital should be shown separately and not clubbed in others.

Date:Place: Signature of Compliance Officer / Director

Name of Person Signing

CERTIFICATE

This is to certify that the details of shareholding pattern and dominant group of M/s ______________(Name of trading member) as given above is based on my/ our scrutiny of the books of accounts, records and documents are true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.

Place: For (Name of Certifying Firm)Date:

Name of Partner/ProprietorChartered Accountant / Company SecretaryMembership Number

Corporate

Annexure A-5 (IF APPLICABLE)

UNDERTAKING FROM RELATIVE OF PERSONS CONSTITUTINGDOMINANT PROMOTER GROUP

I, Mr./Ms./Mrs. ___________ (relative), son/daughter/wife of Mr. ________________, resident of ______________________________________ state that I am holding _____________shares of M/s.________________________ . I shall irrevocably and unconditionally support in respect of my entire shareholding, Mr/Ms. ________________, a shareholder in the above mentioned company. I further state that I have no objection to my entire shareholding being reckoned with the shareholding of Mr. ______________________, who is my __________ (give relation with the latter) for the purpose of determining the dominant promoter group of the said company.

This support is irrevocable and I also undertake to give prior information to the Inter-connected Stock Exchange of India Ltd. before selling or otherwise transferring any part or whole of my above mentioned shareholding.

WITNESS BY: SIGNATURE :Signature : Name :Name : Place :Address : Date :Date :

CERTIFICATE

This is to certify that the shareholding in ________________________ Limited as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction..

Place: For (Name of Certifying Firm)Date:

Name of Partner/Proprietor Chartered Accountant / Company

Secretary Membership Number

Partnership FirmAnnexure – A6

(To be provided on the Letterhead of the Member)(Details of Partners, Sharing Pattern & Dominant Group of Partnership Firm)

SHARING PATTERN & DOMINANT GROUP DETAILS of _____________________(Name of Trading Member) as on 31/03/2014

Sr. NO

Name of

Dominant

Partner

If Dominant Partner Experience (Name of the Organisation/No. of years)

Education

(Graduate &

above/ Below gradua

te)

Designated

Partners (Yes/

No)

Capital in the Firm (Rs.)

Sharing Pattern in Profit

(%)

Sharing Pattern

in Losses

(%)

Date of

birth

Residential

Address & Tel. Nos.

Contact No. Father's Name

Partnerships/

Controlling

shareholding in other cos.

PANName of Relative Supporting

Relations

1 A                                A1                              A2                            Sub-total                          

1 B                                B1                              B2                            Sub-total                            TOTAL DOMINANT PARTNER GROUP HOLDINGS (A)                  

Part II - Non Dominant Partner Group

Sr. NO

Name of Partner Experience (No.

of years)

Education

(Graduate &

above/ Below gradua

te)

Designated

Partners (Yes/

No)

Capital in the Firm (Rs.)

Sharing Pattern in Profit

(%)

Sharing Pattern

in Losses

(%)

Date of

birth

Residential

Address & Tel. Nos.

Contact No. Father's Name

Partnerships/

shareholding in other cos.

PAN

3                            4                            5                            

 TOTAL DOMINANT PARTNER GROUP HOLDINGS (B)                    

  Grand Total (A) +(B)     xx 100% 100%            

NOTES :

1. Please specify relation of person supporting dominant shareholder (e.g. Wife, Husband, Brother, etc..)2. Experience only in (i) securities market, (ii) as investment consultant, (iii) as portfolio manager, be indicated.3. (1) Against each partner, please state whether he is designated partner or not by indicating ‘Yes’ or ‘No’.

(2) There must be atleast two designated partners. (A designated partner shall be a graduate by qualification and possess atleast 2 years of experience in (i) securities market, (ii) as investment consultant, (iii) as portfolio manager.).

(3) Any appointment or resignation of a designated partner requires prior approval of the Exchange

Date:Place: Signature of Compliance Officer / Partner

Name of Person Signing

CERTIFICATE

This is to certify that the details of partners of ______________(Name of trading member) as given above is based on my/ our scrutiny of the books of accounts, records and documents are true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.

Place: For (Name of Certifying Firm)Date:

Name of Partner/ProprietorChartered Accountant / Company Secretary Membership Number

Individual

Annexure –A7

(To be provided on the Letterhead of the Member)(Details of Proprietor)

DETAILS OF PROPRIETOR AS ON 31/03/2014Sr No

Name Experience (Name of the Organisation/No. of years)

Education (Graduate & above /Below graduate)

PAN No.

Quali-fication

Date ofBirth

ResidentialAddress

ContactNo.

Father’s Name

Directorships / shareholding in other cos.

123

NOTES :1. All initials to be expanded (full name to be indicated)2. Experience only in (i) securities market, (ii) as investment consultant, (iii) as portfolio manager, be indicated.

Date: Signature of Compliance Officer / ProprietorPlace: Name of Person Signing

CERTIFICATE

This is to certify that the details of proprietor, as given above is based on my/ our scrutiny of the books of accounts, records and documents are true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction.

Place: For (Name of Certifying Firm)Date:

Name of Partner

Chartered Accountant / Company Secretary Membership Number

Body Corporate/ Individual/ Partnership Firm

Annexure –A8

(To be provided on the Letterhead of the Member)

TO WHOMSOEVER IT MAY CONCERN

This is to inform you that we have appointed Mr./ Ms. _____________________ as the Compliance Officer in terms of Regulation 18A of the SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 with effect from _______________ (date).

The information as required by you is provided below:

Name of the Compliance

Officer

Father’s Name Residential Address/ Telephone No(s) /

Mobile No.

Qualification(s) Previous employment (name of the organization)

We undertake to intimate and update the Exchange as and when there is any change in the aforesaid information.

Thanking you,

Yours faithfully,

For ____________________________ (Name of Trading Member)

Proprietor/Partner/Director

Countersigned by the Compliance Officer

Name

Notes:

(1) In case of an Individual trading member – Compliance Officer can be individual himself or any employee.

(2) In case of a Partnership Firm/Corporate trading member – Compliance Officer can be any Partner/Director or employee of the trading member.

(3) Only one Compliance Officer can be appointed.

Body Corporate/ Individual/ Partnership FirmREVISED FORMAT OF AUDITORS CERTIFICATE FOR REPORTING TURNOVER

Annexure –A9

(To be provided on the Letterhead of the Member)Member’s name :

Member’s trade name :

Member’s SEBI Registration number : (as appearing on the SEBI Registration certificate)

Name of the Stock Exchange :

TURNOVER TABLE

Financial Year

Jobbing turnover (sale side), if any

Jobbing turnover

(purchase side), if any

PSU bonds/ Govt securities turnover (two-side), if any

Other debt market

turnover(two-side), if

any

*Carry-forward

turnover, if any

Carry-forward off-setting entry

turnover, if any {to be given only if included in (6) }

Off-market turnover

(two-side), if any

Other turnover

(two-side)

Total turnover

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)=(2)+ (3)+(4)+(5)+(6)– (7)+(8)+ (9)

Rs.crore Rs.crore Rs.crore Rs.crore Rs.crore Rs.crore Rs.crore Rs.crore Rs.crore

*Carry forward turnover shall include carry forward, renewal, badla, ALBM and BLESS transactions.

FEES COMPUTATION TABLE

Financial Year

Fees on Jobbing turnover, if any

Fees on PSU bonds/ Govt

securities turnover, if any

Fees on Other debt market turnover, if

any

Fees on Carry-forward turnover less off-setting entries(if included), if any

Fees on Off-market turnover,

if any

Fees on Other turnover, if any

Fees payable

(1) (2) (3) (4) (5) (6) (7) (1)+(2)+(3)+ (4)+(5)+ (6)+(7)

  Rs. Rs. Rs. Rs. Rs. Rs. Rs.

            Total Fees Payable Rs. 

            Less Fees Paid, if anyRs            Balance Fees Payable Rs.            Interest Payable Rs.            Interest Paid Rs.            Balance Interest Rs.

Certification by Auditor should also include the following confirmation: -1.That the break up into various components of the total turnover is in conformity with Schedule III of SEBI(Stock Brokers and Sub-Brokers) Regulations 1992 as amended on February 20, 2002 and, further, jobbing transactions reported, are in conformity with Paragraph (1), clause (bb) of Schedule III of SEBI(Stock Brokers and Sub-Brokers) Regulations 1992 as amended on February 20, 2002, i.e. transactions that are reported as jobbing have been squared off during the same day and that such transactions have not been undertaken by the broker on behalf of clients.

Annexure – A-10(To be provided on the Letterhead of the Member)

Format : A-10 ( Undertaking Stating No Changes in Documents A-2 to A-8)

Undertaking Stating No Changes in Documents A-2 to A-8

After verification of the books of accounts, records and documents, we hereby confirm that as per our records, details of documents A-2 to A-8 as on March 31, 2014 are exactly the same as per the documents A-2 to A-8 submitted by us as on March 31, 2013 and there is no change in any details as compared to March 31, 2013.

We also confirm as under:

Sr.No.

Document Type

Description Change from previous accounting

Year(Yes/No/NA)

1 A-2 Details of membership on other stock exchanges & details of listing

2 A-3 Details of Directors

3 A-4 Details of Shareholding Pattern & Dominant Group of Body Corporate

4 A-5 Undertaking(s) of Relatives in support of the Dominant Group

5 A-6 Details of Partners, sharing pattern & dominant group of partnership firm

6 A-7 Details of Proprietor

7 A-8 Details of Compliance Officer

Note: In case there is any change in the details of documents A-2 to A-8, we are submitting required

details as per the prescribed format.

Date: Signature of Compliance Officer / DirectorPlace: Name of Person Signing

CERTIFICATE

This is to certify that the details given in Annexure A-10 above, based on my/our scrutiny of the books of accounts, records and documents are true and correct to the best of my/our knowledge and as per information provided to my /our satisfaction.

Place: For (Name of Certifying Firm)Date: Name of Partner/Proprietor

Chartered Accountant / Company Secretary Membership Number