Surrender of trading membership can be permitted by the Exchange after fulfilling certain conditions by the member such as, clearing off all the dues to the Exchange and NSCCL, notifying all other TMs of the approval of surrender, issuance of a public notification in leading dailies, etc.
(a) A trading member desirous of surrendering its membership of the Exchange is required to send its request in writing in the prescribed format.
(b) Before submission of an application for surrender of membership, the trading member is required to comply with all the pre-requisites for application of surrender in the prescribed format. The following aspects should be covered in the application for surrender of membership from a trading member,
(i) who has been suspended/ disciplinary action taken by the Exchange /SEBI
(ii) in respect of whom any investigation/ action consequent to a default has been initiated by the Exchange /SEBI.
(c) No trading member, who has surrendered its trading membership, their partners (in case of partnership firm) and/ or dominant shareholders (in case of corporates) is eligible to be readmitted to the trading membership of the Exchange in any form for a period of one year from the date of cessation of trading membership.
(d) The application of surrender of trading membership is subject to fulfillment of certain conditions, such as submission of original SEBI registration certificate(s) on all segments on which the trading member is registered; submission of sub-broker registration certificate(s) of all the sub-brokers associated with the trading member for onward transmission to the SEBI for cancellation etc.
(e)A notice to public by way of a public notification in newspapers should be made by the Exchange and certain time (from the date of public notification) is given to investors, public, etc. to lodge claims against the surrendering trading member.
