How to become a Member of Cochin Stock Exchange Ltd.
It is possible for you to take membership directly from Cochin Stock Exchange Ltd. (CSE). To become a CSE Member you should have a minimum qualification of pre-university (pre-degree) pass and knowledge about Capital Market. The last membership auction, which was very recently held was at Rs. 2 lakhs. Further a Base Minimum Capital of Rs. 2 lakhs of which Rs. 50,000/- cash and Rs. 1,50,000/- in the form of Bank Guarantee/FD Receipt/Shares to be deposited.(SEBI requirement)
Advantages for a CSE member broker
CSE has subsidiary company (CSBL) and it has offered the following facilities:
1. Trading in BSE and NSE with very attractive brokerage (for Delivery trading 0.025% and for squaring up 0.017%) .CSBL offers Multex software with variety of risk management system. Multex brings together BSE and NSE trading screen in a single computer.
2. DP facilities through CDSL. (Use chat facility at yahoo messenger using the id “csbldp”.)
3. Web trading ie webx (visit www.cochinstockexchange.com and use the link for Internet trading in “BSE- webx.”)
4. Facility to download reports like Member’s Daily Trade Statement, personal ledger,margin ledger, DP holding details through the website, using password.
5. Derivatives trading through ISE, which is an Exchange co-promoted by CSE.
6. Pay-out discounting (facility to take out instant pay-out -on the day of sale - by paying a small service charge).
7. Variety of Connectivity options like V-sat, ISDN, Dial-up, Leaseline, Asianet ( it is possible now in Cochin area to access CSBL trade feed through Asianet cables).
8. Training for broker office staff including for NCFM examination. CSE Institute of capital market is conducting seminars in on advanced topic in capital market.
9. Fast Track System (This is a system wherein a broker can connect his high networth client and offer him the trading facility in NSE and BSE through CSBL. Though the client will be operating under the Broker CSBL would credit shares and Money directly to clients’ account. Brokerage will be charged as directed by the Member and the difference between the brokerage charged to such a Fast Track client and the actual brokerage of CSBL will be credited to the Member-broker’s account).
10. We bank with UTI Bank which has the internet banking facility.
11. A Member is entitled to offer primary market services to his clients.
12. Moreover the Member becomes a part owner (1/450th) of CSE
In short, you will be able to trade in BSE through CSE’s subsidiary company, CSBL using Webx (web trading system) and conduct all the dealings/settlement activities through the website of CSE, UTI Bank, and the DP website (easi)
The procedure to be following to becoming a member of CSE
i) On your request we send the application for CSE Membership to you
ii) You submit the application with us along with a cheque of Rs. 1,00,000/- (50% of the card auction amount and Rs. 100/- towards Application money and Rs. 250/- towards processing charge)
iii) We place the application for approval of the Board. The convention is that the incoming member will have to be present during this Board Meeting.
iv) On approval of the Board, the balance amount of Rs. 1,00,000/- and the BMC are required to be paid.
v) We send your membership application duly signed by you to SEBI for registration. In the normal case in about a month’s time SEBI register you as a member and handover the registration number. You are now eligible to operate in CSE.
vi) We send the sub-broker applications to SEBI to make you the sub-broker in CSBL under NSE and BSE. Draft for Rs. 1000/- each is required for this ( for NSE and BSE)
vii) Once you receive registration for sub-brokership, you can commence trading in both NSE and BSE. The minimum margin money required for commencing business is Rs. 50,000/-
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