------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Circular No: ACE/C&S-004/2010/025 Date: October 26, 2010
_______________________________________________________________________________ Collateral procedure
_______________________________________________________________________________
In terms of the Bye-laws, Rules and Business Rules of the Exchange, members of the Exchange are
hereby notified regarding the
1. Margin Deposits, their components and other related processes
2. Clearing Front end
For and on behalf of
Ace Derivatives and Commodity Exchange Ltd.
Suresh Pai
Head - Market Operations
_________________________________________________________________________________
For any clarifications or assistance, please contact the Customer Service Group at 022-6670 9201 or
send us an email at services @aceindia.com
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
1. Margin Deposit Requirements
1.1. Initial Base Minimum Capital (BMC)
The members of Ace Derivatives & Commodity Exchange Limited (ACE or Exchange), are
required to deposit interest free security deposit as BMC prescribed by the Exchange at the
time of admission.
A Member is required to bring in the applicable BMC as prescribed by the Exchange before
activation as a Member. It shall be mandatory for a Member to ensure that BMC is maintained
with the Exchange at all points of time on a continuous basis till he continues as an active
member of the Exchange
Base Minimum Capital can be deposited by members with ACE in the form of
• Interest Free Cash Security Deposit, and
• Cash equivalents i.e. Bank Guarantee (BG) and Fixed Deposit Receipt (FDR)
Presently the requirement of BMC is as under
( Rs Lakh)
Member Type Cash Cash Equivalent
Trading Cum Clearing member (TCM) 2.00 6.00
Institutional Trading Cum Clearing Member (ITCM) 10.00 40.00
Professional Clearing Member (PCM) 10.00 40.00
1.1.1. Cash Security Deposit
This is payable only by way of demand draft drawn in favor of “Ace Derivatives and Commodity
Exchange Limited”, Mumbai. Alternatively, a member who has already opened settlement
account with the clearing bank of the Exchange and has not paid the BMC may request
Exchange in writing to debit the applicable BMC from his Settlement account.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
1.1.2. Cash Equivalents - Cash Equivalent includes Bank Guarantee (BG) and Fixed Deposit
Receipt (FDR)
1.1.2.1 Bank Guarantees
ACE will accept Bank guarantee towards BMC as per the specified format given in
Annexure-1 issued by the ACE, from the approved banks list of which is given in as per
Annexure 2. The minimum term of the bank guarantee should be 12 months. The bank
guarantee may or may not have any claim period. If the bank guarantee does not have
any claim period then the members must submit the renewed bank guarantee at least 15
days prior to the expiry of bank guarantee failing which the benefit of exposure on such
bank guarantee will be withdrawn. However, if the bank guarantee has a claim period
(minimum 15 days) then the benefit will be extended till the date of expiry of bank
guarantee. The members must ensure that the prescribed format is used by the bank
for purpose of the issuance of bank guarantee towards BMC requirements and the Bank
guarantee be issued by the bank on behalf of the member himself / itself.
1.1.2.2 Renewal of Bank Guarantee
The member will be required to renew the bank guarantee submitted by him prior to its
expiry / before the end of the claim period as the case may be. In case of renewal of
bank guarantee, the members shall furnish the renewed Bank guarantee as per the
prescribed format. The renewal of the bank guarantee should be for a minimum period of
12 months with or without claim period. The formats to be used in case of such renewals
are given as Annexure 3.
The renewed bank guarantee / fresh bank guarantee should be submitted to ACE, 15 days
before the day on which the earlier bank guarantee is due to expire. In case the member
wishes not to renew the bank guarantee, member can request for release of Bank
guarantee. The format for release of bank guarantee is given as Annexure 4. However the
Members should ensure that Base Minimum Capital is always maintained at the minimum
prescribed level.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
1.1.2.3 Fixed Deposit Receipt
Members may submit Fixed Deposit Receipts (FDRs) issued by ACE approved banks (List as
mentioned in Annexure 2). The FDR should be issued in the favor of “ACE - A/c Member
Name” and should be deposited in the safe custody of ACE. Bank should mark a lien on
the said FDR in favor of Ace Derivatives & Commodity Exchange Limited as evidenced by
the issuance of a letter by the bank. This letter should be submitted along with the fixed
deposit receipt in original along with a request letter from the member. The format of
issuance of letter by the Bank and submission of letter along with FDR by the Member is given in
Annexure 5. The FDR should be issued for a minimum period of 36 months or such other
period as may be approved by Exchange from any of the approved banks
Renewal of Fixed Deposit Receipts
Members shall ensure that Fixed Deposit Receipts are renewed prior to the expiry dates.
The members need to submit a letter from the issuing bank evidencing renewal of the FDR.
The format for the said letter is given in Annexure 6. Renewals of the said FDRs shall be the
sole responsibility of the Member.
In case the member wishes not to renew the FDR, member can request for release of FDR.
The format for release of FDR is given as Annexure 4. Members should ensure that base
minimum capital is always maintained at the minimum prescribed level.
Maintaining Minimum Level of Security Deposit
Members are required to maintain the Base Minimum Capital at prescribed levels at all
points of time. If the BMC falls below the minimum required level ACE may initiate
suitable action including withdrawal of trading facilities. Further, shortfall in the value of
BMC shall attract penalty/interest as stipulated by ACE from time to time.
1.2. Additional Base Capital (ABC)
Members can submit Additional Base Capital (ABC) to ACE for increasing their exposure
limit for trading. ABC can be submitted in the following forms:
• Cash
• Cash equivalent in form of Bank Guarantee and Fixed Deposit Receipt)
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
• Non Cash in form of Equity shares in Demat form,
• Commodities in Demat form / warehouse receipts of commodities traded on the exchange ( a
separate circular will be issued in this regard shortly)
The ratio of Cash to Cash Equivalent for a clearing members will be 1:3. which means
Cash equivalent up to 3 times of the total cash will be considered for valuation. (25% of the
deposits have to be paid in cash and rest 75% in the form of bank guarantee and / or fixed
deposits issued by the approved banks). However any amount of Cash equivalent will be
considered if a clearing member maintains a cash deposits of at least Rs 15 lakhs with the
exchange
The ratio of Cash to Cash Equivalent for a Professional Clearing Members and Institutional
Clearing member will be 1:4. which means Cash equivalent up to 4 times of the total cash
will be considered for valuation. (20% of the deposits have to be paid in cash and rest 80%
in the form of bank guarantee and / or fixed deposits issued by the approved banks).
The ratio of cash and cash equivalent to Non cash will be 1:2. i.e Non cash collateral up to 2 times
the value of cash and cash equivalent will be considered for valuation.
1.2.1. Cash
ABC in the form of cash can be paid either by money transfer through the clearing bank, or any
other mode as may be specified by the Exchange.
Members will be provided a Clearing front-end for carrying out various activities including
ABC increase Through this front end member can put request for increasing the ABC cash.
After the request is submitted by the member, the member‟s clearing bank will confirm the
request which will then be confirmed by the exchange. Once exchange confirms the
transaction, member limit will be increased by the amount of the cash request.
In exceptional circumstances, Members can also send a written instruction to the Exchange by
fax for the purpose of increasing their ABC and its mode of remitting the fund. The format for the
said request is attached as Annexure 7.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Member can request for release of ABC cash in a prescribed format as per Annexure 8.
Members should ensure that ABC cash release request reaches the C&S department before
7.00 PM each business day All such request will be processed subject to availability of free
cash and credited to members settlement account on next settlement day. Any
payin/shortages of the member will be first adjusted against the ABC cash release and
balance will be credited to the members account.
1.2.2. Cash equivalent - Bank Guarantees
Members may submit Bank guarantee towards ABC, in favor of ACE as per the specified
format given in Annexure 1 from approved banks. The other procedures will be the same as
mentioned in BG for Base Capital.
1.2.3. Fixed Deposit Receipts (FDR)
Members may submit Fixed Deposit Receipts (FDRs) towards ABC issued by approved
banks ( Member and Bank letter formats as per Annexure 5) .The FDR should be issued for a
minimum period of 3 months from any of the approved banks .The other procedures will be
the same as mentioned in FDR for Base Capital.
1.2.4. Non cash collateral
1.2.4.1 Equity shares as collaterals
Members can deposit equity shares of approved companies towards Additional Base Capital in
electronic form ('Demat securities') in the designated depository accounts maintained by the
Custodian(s) approved/appointed by the Exchange in this regard.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Overall Limits
Exchange will accept equity shares subject to following overall limits:
Category Haircut
Shares of one
Company (after
haircut)
Total of Shares of All
Companies (after haircut)
Category A 40% 5 crores 25 crores
Category B 50% 2 crores
The list of eligible stocks along with the haircuts is notified by the Exchange through a separate
circular.
In case of any deletion from the list of approved equity shares, the members should replace such
shares within a period of 3 (three) working days or within such time as may be specified by the
Exchange after which the valuation of such shares will be reduced from the Additional Base Capital .
If the same is not replenished by the member, Exchange will release the shares to members account
on the next working day.
Valuation of Equities
Valuation will be done on the daily basis at the rates prevalent at National Stock Exchange of India
Limited (NSE) or Bombay Stock Exchange Limited (BSE),
In case of excess volatility or for any other reason as may be deemed fit by the Exchange the
valuation of equity shares shall be done at such intervals and in such manner as the Exchange
may deem fit.
Approved Custodian
The details of the empanelled Custodian are as under.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
HDFC Bank Limited
Contact Persons:
Mr.Shivayogi Kubasad
Process House , Second floor ,
Kamala Mills Compound , S.B Marg ,
Lower Parel (W) , Mumbai - 400013
Phone – 022-24988484- Ext-3570
Mobile - 9323469244
email id [email protected]
Mr. Samit Mehta,
Trade World, A Wing, Second floor
Kamala Mills Compound, S.B Marg,
Lower Parel (W), Mumbai - 400013
Phone - 24988484 - Ext - 3567
Mobile - 9323851617
email id - [email protected]
Members may contact the Custodian to ascertain the modalities with regard to deposit of securities.
The approved custodian(s) will specify the charges to be levied for the above services and the
manner in which the payments are to be made to them. The Members shall pay the bills raised by
the approved Custodian(s) within such time specified by the custodian directly to the custodian.
Ownership of Equity shares
The securities that may be deposited shall be subject to the beneficial ownership of the Member. In
case of Partnership Firms and Limited Liability Partnerships (LLPs), the securities belonging to any
of the partners, in case of corporate, the securities belonging to any of the directors and in case of
Hindu Undivided Family (HUF), the securities belonging to Karta shall also be accepted provided
they hold the securities as sole/first joint holder and no depositor of securities is minor as on the date
of deposit thereof.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
In case of reconstitution/restructuring or any such change in the partners/directors/Karta of the
Member, as applicable, a Member shall be required to replace the securities belonging to such
outgoing partners/ directors/karta held in their name solely or jointly, as the case may be,
immediately and no benefit shall be given by the Exchange for such securities towards Additional
Margin Deposits.
Equity shares not acceptable
The following shares shall not be accepted for the purpose of security deposit:
Shares not as per the approved list;
Partly paid up shares;
Shares subject to any lock in period, buy back scheme, any charge or lien, encumbrance of any
kind or whose title is questioned before a Court or any regulatory body or such other limitations.
Marking of Pledge
Members along with joint holders, if any, may deposit dematerialized securities with the
custodian by marking a pledge of the securities in favour of the Exchange. In addition to
any document as may be required by the approved custodian in this regard, the following
documents are required to be provided to the approved custodian.
Deed of pledge is to be executed in the format prescribed by the Exchange and available
with the approved custodian on a non-judicial stamp paper os Rs.300/-or of such
prescribed amount as may be applicable to an agreement executed in the Place of
Execution or as applicable in the State where document is executed , whichever is higher.
Certified true copy of the relevant Board Resolution in case of a corporate body.
Members and the joint holders, if any shall give the necessary pledge instructions to the
approved custodian for the securities to be pledged in favour of the Exchange.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
These securities shall be pledged in favour of “Ace Derivatives & Commodity Exchange
Limited”. The pledge deed for Securities should be submitted to the Custodian as per
Annexure 9
Once the securities are accepted and duly pledged by the approved Custodian , the
approved Custodian shall inform the Exchange the value of the securities after adjusting
the haircut percentages as stipulated by the Exchange and the same shall be considered
as Additional Base Capital.
Release of Equity shares
Members can request for release of Equity shares pledged as collateral by submitting letter as
per Annexure 10. All such release request should reach ACE by 7.00 PM.
Exchange will consider the request for release taking into account the margin deposits and
obligations, outstanding obligations / positions / dues towards the Exchange if any, and that there
is no other liability under the Rules, Bye-Laws and Business Rules of the Exchange, and
Exchange may in accordance with the provisions detailed above, inform the approved
custodian(s) to release such specific securities. The said custodian(s) shall then release the
pledge marked in favor of the Exchange and release such securities to the said Member. the next
day
1.2.4.2 Commodity as collaterals
Commodities as collateral will be accepted as notified by the Exchange from time to time.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
2. Clearing Front End
ACE will be providing a clearing front end to its members. Members will have to submit a
written request to membership department to obtain User ID and password for accessing
the front end. The format of request is available on the website of the exchange i.e
www.aceindia.com under the “other membership documents” tab. (Clearing User ID
document).
Through this clearing front end members can carry out activities like submiting requests for
Increase in ABC, confirm MTM payin, assigning collaterals to Trading Members (by
Clearing Member), submit delivery intentions, submit Early Payin request, create and
upload client details, view obligation report.
Members are requested to refer the “Clearing user manual” available on the website
www.aceindia.com for further details on the same
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure – 1
Format of the Bank Guarantee for Collaterals as Base Minimum/Additional Base Capital
Instructions:
1. This Bank Guarantee has to be either franked or executed on a Non-Judicial stamp paper of Rs.
300/- or the value prevailing in the state, whichever is higher.
2. Please ensure that each and every blank cell in the Bank Guarantee is duly filled.
3. Please ensure that each and every handwritten detail filled is countersigned by the authorized
signatory (ies).
4. Please ensure that each and every page is signed and rubber stamped.
5. Please ensure that BG number, Issue date, BG amount and maturity date are mentioned on
each and every page of the BG
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
BG No
Issue Date
Maturity Date
BG Amount
GUARANTEE
This guarantee is issued by ________________________________________ (Bank Name), a body
corporate constituted under the ____________________________ Act 19__, having its Head Office at
___________________________________ (hereinafter referred to as the “Bank” which term shall
wherever the context so permits, includes its successors and assigns) in favour of ACE DERIVATIVES
& COMMODITY EXCHANGE LIMITED, a company established under the Companies Act, 1956 and
having its registered office at Rawat ni Wadi, Nr. Central Bank of India, Gandhi Road, Ahmedabad,
Gujarat, 380001 (hereinafter referred to as “ACE” which expression shall unless it be repugnant to the
context or meaning thereof be deemed to mean and include its successors and assigns)
WHEREAS
1. Mr./Ms. _______________________________________________________ s/o / d/o / w/o
____________________________________,residing at _________________________
_____________________________ and having his/her office at
___________________________________________________________________________
(Complete Address), (hereinafter referred to as the “Member”, which expression shall unless it
be repugnant to the context or meaning thereof be deemed to mean and include his/her
successors and assigns) /*
OR
M/s ______________________________________________, a partnership firm registered
under the Indian Partnership Act, 1932 and having their office at
_____________________________________________________________________________
__ (Complete Address), (hereinafter referred to as the “Member”, which expression shall unless
it be repugnant to the context or meaning thereof be deemed to mean and include their
successors and assigns) /*
OR
M/s __________________________________________________________ Limited,
incorporated under the Companies Act, 1956 and having its registered office at
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
BG No
Issue Date
Maturity Date
BG Amount
___________________________________________________________________________
(Complete Address), (hereinafter referred to as the “Member”, which expression shall unless it
be repugnant to the context or meaning thereof be deemed to mean and include its successors
and assigns) * is/are a Member of ACE.
2. One of the conditions of Membership of ACE is that the Member maintains with ACE Security
Deposit / Margin Deposit in the form of Cash, Bank Guarantees, FDRs and Government of
India Securities of such value as prescribed by ACE, after applying suitable margins as
prescribed by ACE.
3. At the request of the Member, ACE has agreed to accept a bank guarantee in lieu of Security
Deposit / Margin Deposit from an approved commercial bank for an equivalent amount of
Rs.______________ (Rupees __________________________________ only).
4. The Member has requested the Bank to furnish to ACE a guarantee for Rs.________________
(Rupees ______________________________only).
NOW IN CONSIDERATION OF THE FOREGOING,
1 We, the ______________________________________________________ (Name of Bank)
having a branch at _______________________________
___________________________________________________________________________
(Complete Address of Branch) at the request and desire of the Member do hereby irrevocably
and unconditionally guarantee to pay a sum of Rs.___________, (Rupees __________
_________________________ only) to ACE as a security for due performance and fulfillment by
the Member of his/her/its engagements, commitments, operations, obligations or liabilities as a
Member of ACE including any sums due by the Member to ACE or any other party as decided by
BG No
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Issue Date
Maturity Date
BG Amount
2 ACE arising out of or incidental to any contracts made, executed, undertaken, carried on or
entered into or purported so to be, by the Member. The Bank agrees and confirms that the said
guarantee shall be available as a security for meeting, satisfying, discharging or fulfilling all or
any obligation or liability of the Member as directed and decided by ACE, with no reference to
the Member.
3 The Bank hereby agrees that if in the opinion of ACE, the Member has been or may become
unable to meet, satisfy, discharge or fulfill any obligations, liability or commitments or any part
thereof to ACE, or its Clearing and Settlement mechanism /arrangement or to any other party as
decided by ACE, then without prejudice to the rights of ACE under its Bye-laws, Rules, or
Business Rules or otherwise, ACE may at any time thereafter and without giving any notice to
the Member invoke this guarantee to meet the aforesaid obligations, liabilities or commitments of
the Member.
4 The Bank undertakes that it shall, on first demand of ACE, without any demur, protest or
contestation and without any reference to the Member and notwithstanding any contestation by
the Member, pay to ACE such sums not exceeding Rs_____________ (Rupees
______________________________ only) as may be demanded by ACE. The decision of ACE
as to the obligations or liabilities or commitments of the Member and the amount claimed shall
be final and binding on the Bank, and any demand made on the Bank shall be conclusive as
regards the amount due and payable by the Bank under this guarantee.
5 The guarantee shall be a continuing guarantee and remain operative in respect of each of the
obligations, liabilities or commitments of the Member severally and may be enforced as such in
the discretion of ACE, as if each of the obligations, liabilities or commitments had been
separately guaranteed by the Bank. The guarantee shall not be considered as cancelled or in
any way affected on any demand being raised by ACE but shall continue and remain in
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
BG No
Issue Date
Maturity Date
BG Amount
operation in respect of all subsequent obligations, liabilities or commitments of the Member.
However the maximum aggregate liability of the Bank during the validity of the guarantee shall
be restricted to an aggregate sum of Rs.______________ (Rupees ______________
____________________ only).
a. Notwithstanding the above, the Bank notes that the nature of operations of the Member
is such that the obligations, liabilities or commitments of the Member are of a continuing
nature and as such, Bank agrees that this guarantee can be invoked by ACE even in
respect of the obligations, liabilities or commitments of the Member towards ACE which
might have arisen prior to the execution of this guarantee.
5. This guarantee shall not be prejudiced by the failure of the Member to comply with the Byelaws,
Rules or Business Rules of ACE or any terms and conditions attendant to the Membership of
ACE. ACE shall be at liberty to vary, amend, change or alter any terms or conditions or its Bye
Laws, Rules or Business Rules of Membership to ACE in general or as applicable to the Member
in particular from time to time, without thereby affecting its rights against the Member or the Bank
or any other security belonging to Member now or hereafter held or taken by ACE at any time.
The discretion to make demands under this guarantee shall exclusively be that of ACE and ACE
is entitled to demand hereunder notwithstanding being in possession of any deposits or other
securities of the Member.
6. The validity of this guarantee shall not be affected in any manner whatsoever if ACE takes any
action against the Member including DECLARATION OF A DEFAULTER, SUSPENSION or
EXPULSION or any other disciplinary action.
7. The Bank further agrees that ACE shall have the fullest liberty without our consent and without
affecting in any manner our obligations hereunder to vary any of the terms and conditions of
membership of the Member, Bye Laws, Rules and/or Business Rules or to extend time of
performance of any obligation/s by the said Member from time to time or to postpone for any
time or from time to time any of the powers exercisable by ACE against the said Member and to
forbear or enforce any of the terms and conditions relating to the membership and we shall not
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
be relieved from our liability by reason of any such variation, or extension being granted to the
said Member or for any forbearance, act or omission on the part of ACE or any indulgence by
ACE to the said Member or by any such matter or thing whatsoever which under the law relating
to sureties would, but for this provision, have effect of so relieving us.
8. This guarantee shall not be affected by any change in the constitution of ACE or the Member or
the Bank and it shall remain in force notwithstanding any forbearance or indulgence that may be
shown by ACE to Member.
9. The Bank undertakes to pay to ACE, the amount hereby guaranteed within 24 hours of being
served with a written notice requiring the payment of the amount either by hand delivery or by
Registered Post or by Speed Post.
10. This guarantee may be invoked by ACE in part(s) without affecting its rights to invoke this
guarantee for any liabilities that may devolve later.
11. The Bank undertakes not to revoke this guarantee during its currency except with the previous
consent of ACE in writing and this guarantee shall be a continuous and irrevocable guarantee
upto a sum of Rs. _____________________________ (Rupees
______________________________________________ only).
12. Notwithstanding anything mentioned herein above, the liability of the Bank under this guarantee
shall not exceed Rs. ______________ (Rupees _________________________ only) and it shall
be valid for a period of _______ months i.e. up to ____________________ (Date of expiry of
Bank Guarantee).
13. The bank is liable to pay the guaranteed amount only if ACE serves upon the Bank a written
claim or demand on or before __________________ (Claim date of the bank guarantee) i.e.
within _____ months after the date of expiry of Bank Guarantee.
14. This Bank Guarantee shall be governed by and construed and interpreted in accordance with the
laws of India and the courts in Mumbai shall have exclusive jurisdiction on all matters arising out
of this Bank Guarantee.
15. The Bank has power to issue this Guarantee under the statute and the undersigned has full
power to sign this Guarantee on behalf of the Bank.
Executed on this _______________day of ______________________ at __________ (place).
FOR ____________________________________ (BANK)
_______________________________________ BRANCH)
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
AUTHORIZED SIGNATORIES
SEAL OF THE BANK
* Delete whichever is not applicable
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure -2
Approved Banks for issuance of BG and FDR
Sr
No Name of Bank
Sr
No Name of Bank
1 State Bank of India (SBI) 29 Dena Bank
2 ICICI Bank Ltd. 30 State Bank of Bikaner & Jaipur
3 Punjab National Bank 31 Punjab & Sind Bank
4 Bank of Baroda 32 State Bank of Mysore
5 Bank of India 33 The Federal Bank Ltd.
6 Canara Bank 34 The Jammu & Kashmir Bank Ltd.
7 HDFC Bank Ltd. 35 State Bank of Indore
8 IDBI Bank Ltd. 36 ABN Amro Bank N.V.
9 Union Bank of India 37 ING Vysya Bank Ltd.
10 Axis Bank Ltd. 38 Kotak Mahindra Bank Ltd.
11 Central Bank of India 39 Indusind Bank Ltd.
12 Syndicate Bank 40 Deutsche Bank AG
13 Indian Overseas Bank 41 YES Bank
14 Oriental Bank of Commerce 42 The Karnataka Bank Ltd.
15 UCO Bank 43 Barclays Bank PLC
16 Citibank N.A. 44 The South Indian Bank Ltd.
17 Allahabad Bank 45 The Bank of Rajasthan Ltd.
18 Standard Chartered Bank 46 The Karur Vysya Bank Ltd.
19
The Hongkong and Shanghai
Banking Corporation Ltd. 47
The Development Bank of Singapore
Ltd.
20 Corporation Bank 48 JPMorgan Chase Bank
21 Indian Bank 49 Bank of America NA
22 State Bank of Hyderabad 50 BNP Paribas
23 State Bank of Patiala 51 The Bank of Nova Scotia
24 Andhra Bank 52 Calyon Bank
25 Vijaya Bank 53 Development Credit Bank Ltd.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Sr
No Name of Bank
Sr
No Name of Bank
26 United Bank of India 54 The Dhanalakshmi Bank Ltd.
27 Bank of Maharashtra 55 Societe Generale
28 State Bank of Travancore
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure 3
Format of letter for Renewal of BGs
Instructions
1. This Bank Guarantee has to be either franked or executed on a Non-Judicial stamp paper of Rs. 300/-
or the value prevailing in the state, whichever is higher.
2. Please ensure that each and every blank in the Bank Guarantee is duly filled.
3. Please ensure that each and every handwritten detail filled is countersigned by the authorized
signatory (ies).
4. Please ensure that each and every page is signed and rubber stamped.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
To,
Ace Derivatives & Commodity Exchange Limited
4th Floor,
Building Number 4,
Infinity IT Park,
General A.K.Vaidya Marg,
Malad (East),
Mumbai 400 097
We, _______________________________________ (Bank Name) having our registered office at
________________________________________________ and our branch office at
_______________________________________________ refer to the Bank Guarantee number:
____________________ executed by us on the __________ day of ____________ 20__ at
_____________ (hereinafter referred to as “said guarantee”) on account of Mr./Ms./M/s.
____________________________________________________ having his/her/ its/registered office
at________________________________________________________
__________________________________________________________________________(hereinaft
er referred to as a „Member‟) for a sum of Rs ______________ (Rupees
__________________________________________________only) in your favour.
The validity of the said guarantee was up to ____________________________.
With reference to the same we state as hereunder:
At the request of the Member, we extend the period of the validity of the said guarantee up to
__________________.
Notwithstanding anything mentioned herein above,
a) The liability of the Bank under this guarantee shall not exceed Rs. _______________ (Rupees
________________________________________ only)
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
b) This guarantee shall be valid for a period of ____________months i.e. up to
_______________.
c) The bank is liable to pay the guaranteed amount only if ACE serves upon the Bank a written
claim or demand on or before ________________ (i.e. within ___ months after the date of
expiry of the bank guarantee as mentioned in clause b above).
We hereby affirm and confirm that save and except to the extent as provided for herein above, the
said guarantee together with all other terms and conditions therein shall remain operational and in
full force and effect till _________________________.
Signed for and on behalf of _________________________________ on this ____________ day of
_____________________ at ___________________.
FOR ________________________________ (BANK)
________________________________ (BRANCH)
AUTHORIZED SIGNATORIES
SEAL OF THE BANK
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure – 4
Format of Letter for release of BG/ FDR
(On the letter head of the member)
To
Ace Derivatives & Commodity Exchange Limited
4th Floor,
Building Number 4,
Infinity IT Park,
General A.K.Vaidya Marg,
Malad (East),
Mumbai 400 097
Dear Sir/Madam,
Sub: Release of BG / FDR given towards ABC/BMC
You are requested to release the following BG/ FDR submitted earlier towards Base Minimum
Capital/ Additional Base Capital*:
Sr.
No.
BG / FDR No. Issue
Date
Maturity
Date
Amt. in
Rs.
Yours faithfully,
Authorized Signatory
Name:
Designation:
* Strike out whichever is not applicable
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure - 5
Format of Letter for Submission of FDR/BG
[On the letter head of the member]
Date To Ace Derivatives & Commodity Exchange Limited 4
th Floor,
Building Number 4, Infinity IT Park, General A.K.Vaidya Marg, Malad (East), Mumbai 400 097
Dear Sir/Madam,
Ref: Member Name - __________________________________
Member Code - ___________
As required by you and in compliance of your norms, we have to furnish you Additional Base
Capital / Base Minimum Deposit*. Accordingly we have furnished the same in the form of FDR
placed with ________________ Bank, issued as ACE DERIVATIVES & COMMODITY
EXCHANGE LIMITED - A/c Member Name for Rs. ____________.
The details of FDR are as under:
FDR
No.
Issue
Date
Amount in
Rs.
Maturity
Date
I / We hereby agree and give consent that you i.e., ACE Derivatives & Commodity Exchange
Limited (ACE), shall have an irrevocable authority to encash the said FDR and to withdraw the
said FDR amount at any time, even prior to maturity without notice to me / us for adjustment of
ACE dues and we have no objection whatsoever to the same.
Yours faithfully,
Authorized Signatory
Name:
Designation:
Contact no:
Strike out whichever is not applicable
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure 5-
Format of Letter Confirming the Lien on Fixed Deposit Receipt
[On the letter head of the bank]
Date
To
ACE Derivatives & Commodity Exchange Limited
4th Floor,
Building Number 4,
Infinity IT Park,
General A.K.Vaidya Marg,
Malad (East),
Mumbai 400 097
Dear Sir/Madam,
We refer to the fixed deposit receipt (FDR) bearing no. ______________ issued for
Rs.___________, in the name of ACE DERIVATIVES & COMMODITY EXCHANGE LIMITED - A/c
Member Name.
We hereby confirm that
i) There is no lock in period for encashment of the said FDR.
ii) The amount under the said FDR would be paid to you on demand, on or before the maturity of
the said FDR.
iii) Encashment whether premature or otherwise would not require any clearance from any other
authority / person.
iv) We agree that on encashment of FDR, the interest accrued will also be released to you.
v) We agree that the FDR will be renewed for such periods as may be instructed by the Member /
Custodian / ACE Derivatives And Commodity Exchange Limited
Yours faithfully,
Authorized Signatory
Name:
Stamp of the Bank
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure – 6
Format of the Letter to be given by Bank for FDR renewal
[On the letter head of the bank]
Date :
To
ACE Derivatives & Commodity Exchange Limited
4th Floor,
Building Number 4,
Infinity IT Park,
General A.K.Vaidya Marg,
Malad (East),
Mumbai 400 097
Dear Sir/Madam,
We refer to the fixed deposit receipt (FDR) issued, in the name of ACE Derivatives & Commodity
Exchange Limited - A/c Member name. Details are as under.
Old FDR No Issue Date Amount in Rs. Old Maturity Date
The above FDR(s) has/have been renewed for further period of _____months under the auto renewal
facility on the request of the Member. Details are as follows.
New FDR No Renewal Date Amount In Rs. New Maturity Date
We hereby confirm that
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
i) There is no lock- in period for encashment of the said FDR.
ii) The amount under the said FDR would be paid to you on demand, at any point of time without
any reference to the ________________ (name of Member).
iii) Encashment whether premature or otherwise would not require any clearance from any other
authority / person.
iv) We agree that on encashment of FDR, the interest accrued will also be released to you.
v) We agree that the FDR will be renewed for such periods as may be instructed by the Member
/ Custodian / ACE.
vi) Old Instrument shall become invalid and new instrument with new FDR No._____ is issued
(Only in case when new FDR is issued against the expiring FDR).
Yours faithfully,
Authorized Signatory
__________ Bank Ltd
Stamp of the Bank
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure -7
Draft of the Letter to be given by the Member for submitting Additional Base Capital by way of cash
deposit
Date :
To
ACE Derivatives & Commodity Exchange Limited
4th Floor,
Building Number 4,
Infinity IT Park,
General A.K.Vaidya Marg,
Malad (East),
Mumbai 400 097
Dear Sir or Madam:
Sub: ABC Cash Debit
Clearing Member Code : __________
Bank Account No. : __________
Bank Name : __________
You are requested to debit my a/c for “Rs._________ Lacs (in words)” as mentioned above towards
additional base capital.
This is in addition to “Rs. ____________________ Lacs (in words)” already given today.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Total amount including this letter = “Rs.________________________ Lacs (in words)”.
I/We understand that the said amount would be withheld with ACE till further instruction given by us.
Yours faithfully,
Authorized Signatory
Name:
Designation:
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure – 8
Format of letter to be given by members for release of Cash
[On the Letter head of the Member]
Date :
To
ACE Derivatives & Commodity Exchange Limited
4th Floor,
Building Number 4,
Infinity IT Park,
General A.K.Vaidya Marg,
Malad (East),
Mumbai 400 097
Dear Sir/Madam,
Sub: ABC/ BMC - Cash Release
Member Code : __________
Bank Account No. : __________
Bank Name : __________
You are requested to release an amount of “Rs.________________ (in words)” to my / our a/c
from Additional base capital/Base minimum Capital*.
This is in addition to “Rs. ____________________ (in words)” already given today.
Total amount including this letter is “Rs.________________________ (in words)”
We have considered the ratio of cash and non cash collaterals as specified by the Exchange and
understand that our margin limits shall be reduced accordingly.
Kindly note that the same is not being used towards margins.
Yours faithfully,
Authorized Signatory
Name:
Designation:
Strike out whichever is not applicable
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure 9
Deed Of Pledge to be executed by Members for pledge of Equity shares
1. This Pledge deed has to be either franked or executed on a Non-Judicial stamp paper of Rs.
300/- or the value prevailing in the state, whichever is higher.
2. Please ensure that each and every blank of the pledge deed is duly filled.
3. Please ensure that each and every handwritten detail filled is countersigned by the authorized
signatory (ies).
4. Please ensure that each and every page is signed and rubber stamped.
5. Obtain signature of two witnesses on the last page of undertaking.
6. In case of a corporate entity affix the common seal of the company on the last page.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
DEED OF PLEDGE
This Deed of Pledge (hereinafter referred to as “this Deed”) is executed at _______________ on this
___ day of _________ 20___ by _____________________, S/o /d/o / w/o __________________
residing at _____________________ and having his office at ________________________________
*
OR
_____________________________, a partnership firm registered under the Indian Partnership Act,
1932 and having its office at __________________________________*
OR
________________________Limited incorporated as a company under the Companies Act, 1956 and
having its registered office at ___________________________________*
(hereinafter referred to as “Member” which expression shall unless repugnant to the context thereof
include its successors, administrators and assigns) in favour of ACE Derivatives & Commodity
Exchange Limited ,a company established under the Companies Act, 1956 and having its registered
office at Rawat ni Wadi, Nr. Central Bank of India, Gandhi Road, Ahmedabad, Gujarat, 380001
(hereinafter referred to as “ ACE ” which expression shall unless it be repugnant to the context or
meaning thereof, be deemed to mean and include its successors and assigns).
WHEREAS:
a The Member is admitted to the Membership of ACE
b One of the requirement of Membership is that the Member if desirous of availing exposure,
shall maintain with ACE base capital/margin deposits/margin deposits (hereinafter for brevity
case referred to as “margin deposits”) in the form of cash, bank guarantees or securities for the
due performance and fulfillment by him/her/it of his/her/its engagements, commitments,
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
operations, obligations or liabilities as such Member including any sums due by such member
to ACE or any other party as decided by ACE arising out of or incidental to any contracts made,
executed, undertaken, carried out or entered into by such member.
c Securities to be deposited by the Member for the purpose shall be in dematerialized form and
as approved by ACE from time to time.
d The Members shall deposit the securities with such custodians acting as depository participants
as may be determined by ACE from time to time.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. In consideration of ACE having agreed to accept approved dematerialized securities as
approved by it towards margin deposits to an extent of Rs._________ /- (Rupees
___________________only), the Member hereby pledges securities (hereinafter referred to as
“Said Securities” and which are described in the Schedule annexed hereto and shall include all
the securities deposited from time to time in addition to, substitution of or replacement thereof)
with ACE as security for due performance and fulfillment by the Member of all his/her/its
engagements, commitments, operations, obligations or liabilities as a Member of ACE including
any sums due by the Member to ACE or any other party as decided by ACE, arising out of or
incidental to any contracts made, executed, undertaken, carried out or entered into by the
member.
2. The Member shall place the Said Securities in the absolute disposition of such
Custodian/Depository Participant as may be appointed by ACE for the purpose, in such manner
as decided by ACE and such disposition shall be indisputable notwithstanding the fact that the
Member may be permitted to have access to the Said Securities in the manner and subject to
such terms and conditions as determined by ACE from time to time. The Member confirms,
affirms and covenants with ACE that he/she/it shall do all such acts and things, sign such
documents and pay and incur such costs, debts and expenses as may be necessary without
prejudice to any other obligations, liabilities, duties which he/she/it owes as a Member.
3. The Member declares and assures that all the Said Securities are in existence, owned by him/
her/it and free from any prior charge, lien or encumbrance and further shall ensure that all the
Said Securities over which pledge may be created in future shall be in existence and owned by
him/ her/it at the time of creation of such pledge and shall be unencumbered, absolute and
exclusive property of the Member.
4. The Member agrees and undertakes that he/she/it shall not without the prior written permission
of ACE create any charge, lien or encumbrance of any kind upon or over the Said Securities
hereby pledged or those which may hereafter be pledged except to ACE, that the Member shall
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
not suffer any such charge, lien or encumbrance that may affect the Said Securities or any part
thereof, and further undertakes that he/she/it shall not do or allow anything to be done that may
prejudice the Said Securities while he/she/it remains liable to ACE in any manner.
5. The Member agrees, declares and undertakes that he/she/it shall be bound and shall abide by
the terms and conditions of the Scheme for the Deposit of securities in dematerialized form as
formulated and determined by ACE pertaining to margin deposits, or such other requirements
either in their existing form or as modified/changed/altered/amended from time to time pursuant
to requirement/compliance of Membership.
6. The Member agrees and hereby authorizes that if in the opinion of ACE, the Member has failed
to perform and/or fails to fulfill his/her/its engagements, commitments, operations, obligations or
liabilities as a Member of ACE including payment of any sums due by him/ her/it to ACE or to
any other party arising out of or incidental to any contracts made, executed, undertaken, carried
out or entered into by him/ her/it, then the Member agrees that ACE may invoke the pledge and
thereafter on giving one working day notice to the Member shall be empowered/entitled to, sell,
dispose of or otherwise effect any other transfer of the Said Securities in such manner and
subject to such terms and conditions as it may deem fit and that the money if any realized from
such sale/disposal/or other transfer shall be utilized towards dues/may be disbursed by ACE in
such manner and subject to terms and conditions as it may deem fit and further the Member
shall do all such things, deeds, acts and execute all such documents as are necessary to
enable ACE to effect such sale/disposal/or other transfer. The decision of ACE as to the
obligations or liabilities or commitments of the Member and the amount claimed shall be final
and binding on the Member. The Member agrees that one working day notice mentioned above
shall be deemed to be a reasonable notice, as this pledge of securities is being accepted as
margin deposits by ACE in lieu of cash deposits or bank guarantees, which can be invoked
forthwith upon any amount becoming due and appropriated under the Bye-laws, Rules, and
Business Rules of ACE.
7. The Said Securities pledged as security shall be available at the disposal of ACE as a
continuing security and shall remain available for and in respect of all the obligations, liabilities
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
or commitments of the Member jointly or severally and may be utilized as such at the discretion
of ACE, as if each of the obligations, liabilities or commitments is secured by the Said
Securities. This Deed shall not be considered as cancelled or in any way affected upon the
utilization or realization by ACE of the Said Securities for meeting any specific obligation,
liability or commitment of the Member and shall continue and remain in operation in respect of
all subsequent obligations, liabilities or commitments of the Member.
8. The Member agrees to be bound by the instructions of ACE to its custodian or the Depository
Participant as the case may be, in respect of creation of pledge, invocation of pledge, release
thereof, transfer of securities or sale of securities arising out of any obligations of the Member
as referred hereinabove and the Member further agrees that ACE shall not be bound to notify
the Member incase of invocation of pledge created by the Member by these presents.
9. The Member shall be released from his/her/its obligations, liabilities under this Deed only when
ACE, in writing, expressly provides for the release of the Said Securities.
10. The Member agrees that ACE shall be entitled to sell, negotiate or otherwise transfer the Said
Securities and for the purpose to execute transfer documents and/or any other necessary
documents, wherever applicable or other endorsements and that ACE shall be entitled to
receive from the Member all expenses incurred by ACE/Custodian for the aforesaid purposes.
11. The Member agrees to pay promptly all such fees, charges and/or costs pertaining to pledge of
the Said Securities to the Custodian and/or the Depository Participant and to execute such
further documents whether of a legal nature or otherwise as may be required by ACE for the
purpose of giving effect to the provisions of this Deed and also the Scheme for the Deposit of
Securities in dematerialized form.
12. The Member agrees that the deposit of the Said Securities and the pledge thereof shall not be
affected in any manner whatsoever if ACE takes any action against the Member including
suspension or expulsion or declaration of the Member as a defaulter.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
13. The Member agrees that ACE shall not be under any liability whatsoever to the Member or any
other person for any loss, damage, expenses, costs, etc., arising out of the deposit of the Said
Securities under these presents, in any manner, due to any cause, whatsoever, irrespective of
whether the Said Securities are in the possession of ACE at the time of such loss or damage or
the happening of the cause thereof. The Member shall at all times indemnify and keep
indemnified ACE from and against all suits, proceedings, costs, charges, claims and demands
whatsoever that may at any time arise or be brought or made by any person against ACE in
respect of any acts, matters and things lawfully done or caused to be done by ACE in
connection with the Said Securities or in pursuance of the rights and powers of ACE under this
Deed.
14. The Member undertakes that the deposit of the Said Securities and the pledge thereof and any
pledge of securities that may be created shall be binding on the Member as continuing and that
the same shall not be prejudiced by any failure on the part of the Member to comply with the
Bye-laws, Rules or Business Rules of ACE or any other terms and conditions attendant to the
Membership of ACE and that ACE shall be at liberty to enforce its rights hereunder,
notwithstanding its rights against the Member hereunder or under its Byelaws, Rules and
Business Rules including amendments thereof or in relation to the Said Securities or to any
other security now or hereafter held or taken at any time irrespective of any variation,
amendment, change or alteration of any terms or conditions in general or as applicable to the
Member in particular.
15. The executant/s hereby declares that he/she/it has been duly authorized to execute this Deed
by way of Board Resolution of the Member (only in case of corporate members) as per the
copy of Board Resolution annexed hereto.
16. This Deed shall be governed by and construed and interpreted in accordance with the laws of
India and the courts in Mumbai shall have exclusive jurisdiction on all matters arising out of this
Deed.
Executed at _____________ on the day, month and year above mentioned.
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Signed, sealed and delivered by the within named Member **
________________________
In the presence of witnesses
1.
2.
* Strike out whichever is not applicable
** To be signed by
a. The individual if the membership is in his/her name.
b. all partners in case of a Partnership firm
c. by any two of the following persons in the case of a Company:
i. Managing Director
ii. Whole-time Director
iii. Directors (authorized by Board Resolution for the purpose)
SCHEDULE
Company
/
Issuer of
Security
Type of
Security
Face
Value
Total no.
of
securities
Remark
------------------------------------------------- ------- Corporate Office------------------------------------------------
Ace Derivatives and Commodity Exchange Limited 4th Floor, Building No. 4, Infinity IT Park,
Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Tel: 022-66709200, Fax: 022-66709290 Website: www.aceindia.com
Annexure – 10
Format of letter for release of Equity Shares
[On the letter head of the Member ]
Date :
To
ACE Derivatives & Commodity Exchange Limited
4th Floor,
Building Number 4,
Infinity IT Park,
General A.K.Vaidya Marg,
Malad (East),
Mumbai 400 097
Dear Sir/Madam,
Sub: Release of equity shares/WR kept as Additional Base Capital
Clearing Member Code: __________
We wish to withdraw the following equity shares/WR kept as Additional Base Capital
For Equity shares
Sr
no
Symbol ISIN
No.
Security
Name
Qty Custodian
We request you to consider our request for release of the above mentioned securities/warehouse
receipt as per the applicable norms.
Yours faithfully,
Authorized Signatory
Name:
Designation: