ICEX FAQS

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Who can become a member of ICEX?

Following types of entities are eligible to become members of ICEX:

 

  • Individual / Proprietorship Firm
  • Registered partnership Firm
  • Hindu Undivided Family (HUF)
  • Private Limited Company
  • Public Limited Company
  • Co-operative Societies

 

What are the various categories of membership?

The membership of the exchange shall be open to all market participants and depending on their specific needs, we offer various categories of membership viz.

 

  • Trading Member ( TM)
  • Trading cum Clearing Member (TCM) Professional Clearing Member (PCM) Institutional Trading cum Clearing Member (ITCM)

 

What are the membership charges?

Particulars Category
  Trading Member Trading-Cum-Clearing Member Institutional Trading-Cum-Clearing Member Professional Clearing Member
Admission Fees* 100,000 250,000 1,000,000 1,000,000
Networth Requirement 500,000 4,000,000 10,000,000 20,000,000
Interest Free Security Deposit As per ITCM/PCM’s requirement 750,000 (250,000-Cash, 500,000-cash/cash equivalent) 4,500,000 (1,500,000-Cash, 3,000,000-Cash/Cash equivalent) 4,500,000 (1,500,000-Cash, 3,000,000-Cash/Cash equivalent)
Processing Fee* 2,500 2,500 5,000 5,000

 

* Service Tax @ 10.30 % is applicable

 

How is the net worth calculated?

Net worth of an entity should be as per the table above depending on the category of membership. Please follow the procedure explained in detail in the application form to calculate same.

 

Whether the net worth of the holding company will be taken into consideration for the same?

No, the net worth of the holding company is not taken into consideration for reckoning the net worth of the entity applying for membership.

 

Who will certify the various certificates, which are required to be certified by the auditor of the company?

The certificate and statements need to be certified by a Qualified Chartered Accountant who has audited them.

 

What is the lock in period for the interest free security deposit?

The lock in period for the interest free security deposit fee is three years.

 

When is the security deposit eligible for refund in case of surrender?

The interest free security deposit will be refunded to the member on expressing their desire to surrender their membership rights after a period of 6 months of surrender. The minimum lock in period for membership is three years from the date of admission to the membership right.

 

What is the essential requirement for collateral?

Collateral security could be in any of the following forms:

 

  • Cash
  • FDRs of scheduled banks. FDR issued by Co-operative bank will not be accepted.
  • BGs of Scheduled banks.
  • Approved listed shares and securities
  • Approved Warehouse/Vault receipts of Commodities which are traded in the Exchange and stored in the Exchange accredited warehouse/vault.

 

Can we apply for the membership of ICEX in the same name in which we are holding the membership of Stock exchanges?

The existing stock broking company is not permitted by SEBI to take membership of Commodity Exchanges in the same name and they need to form a separate entity for seeking membership of ICEX.

 

Will exposure will be allowed against base capital?

Exposure will be permitted against base capital

 

What are the exchange trading hours?

The trade timings of the Exchange from Mondays through Fridays is 10:00 a.m. to 12.00 or 1.00am as the case may be depending upon different time zones of international market and subject to FMC permission. On Saturdays it is 10:00 a.m. to 02:00 p.m.

 

Can one use the terminal used for other exchanges to trade in ICEX?

Separate VSat connectivity is required.

 

Whether one can use the idle terminal of other exchange for trading on ICEX?

One can use the dish and other hardware with concurrence of other exchange and service provider.

 

What are the commodities permitted for trading?

The following commodities will be permitted for trading on the exchange in the initial phase:

 

  • Gold
  • Silver
  • Copper
  • Zinc
  • Nickel
  • Crude Oil
  • Natural Gas
  • Refine Soya Oil (RSO)
  • RM Seed or Mustard Seed
  • Guar Seed
  • Turmeric
  • Soyabean

 

What is your membership process?

The membership forms on receipt is processed at our end and in case of any additional information is required, the same is asked from the applicant. If found satisfactory, the applicants will be subsequently called for personal interview/telephonic interview with the membership committee of ICEX. Successful applicants will be subsequently intimated by ICEX.

 

Whether qualifying director in entity being member of NSE assume similar responsibility /designation in the new subsidiary formed for commodity exchange?

Yes, in case of NSE there is no such bar.

 

At what point of time one has to comply with the Net worth requirements?

Upon the provisional admission as a member and being advised on the same by us, the prospective members are required to comply with the networth requirements in 2-3 weeks time.

 

Can a partnership deed be used for address proof for partnership firm's registered office address?

Yes, the Address of the firm as mentioned in the partnership deed shall be accepted provided that Partnership Deed has been duly registered with Registrar of firms.

 

IF Partnership Deed is notarized, in that case is it acceptable?

No. The same is not acceptable and it has to be registered though it is not mandatory.

 

 
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