NSE provides a scheme for enabling the trading member to surrender their membership to the Exchange. Details of the norms and procedures related to the surrender of membership to the Exchange are prescribed as below:
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,
The Exchange has absolute discretion in dealing with such applications and if it decides to process/accept the surrender application of such trading member, it may impose additional terms and conditions as it may deem fit.
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 (i.e. from the date of approval of surrender).
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) The trading member should request the Exchange through their surrender application to dismantle and recover all the leased line(s)/ VSAT(s) and other equipments given to them at their dealing offices.
