Declaration of Defaulter by SEBI or Exchange

Trading members of the Exchange can appoint authorized person in the Capital Market, Futures and Options and Currency Derivatives Segments. After received application from individuals / companies Exchange authorized the person and provide him membership once all the formalities completed A Trading member may be declared a defaulter by direction / circulation / notification of the relevant authority of the trading segment if 1.      He is unable to fulfill his obligations 2.      He admits or discloses his inability to fulfill or discharge his duties, obligations and liabilities 3.      He fails or unable to pay within the specified time the damages and the money difference due on a closing out effected against him under the bye laws, rules and regulations; 4.      He fails to pay any sum due to the exchange or to submit or deliver to the exchange on the due date, delivery and receive orders, statement of differences and securities, balance sheet and such other clearing forms and other statements as the relevant authority may from time to time prescribe 5.      If he fails to pay or deliver to the defaulters’ committee all dues, securities and other assets due to a trading member who has been declared a defaulter within such time of the declaration of default of such trading member as the relevant authority may direct 6.      If he fails to abide by the arbitration proceedings as laid down under the bye laws, rules and regulations. Without prejudice to the foregoing, if a trading member is either expelled or declared a defaulter by any other recognized stock exchange on which he is a member or if the registration certificate is cancelled by SEBI, then the said trading member is expelled from the Exchange