1. Applicants are required to submit application form, in the prescribed format along with other relevant documents to the Exchange. The application for new membership is then forwarded to Membership Recommendation Committee. The Membership Recommendation Committee (MRC) consists of seven persons from various disciplines. The MRC conducts interviews of the applicants for trading membership. In case of corporate, the dominant shareholder and designated directors; in case of individuals, the individual himself and in case of partnership firms – two designated partners have to appear for the interview. The purpose of the interview is to acquire information about their capability & commitment to carry on stock broking activities, financial standing and integrity.
2. The MRC recommends the names for admission of trading members to the Membership Approval Committee (Sub-committee of board of directors)/Board of directors of the Exchange. The Board of Directors after taking into consideration the recommendations of the MRC either approves or rejects the applications.
3. On getting approval from the Board, an admission on a provisional basis is provided to the applicant subject to certain conditions like registration with SEBI, submission of relevant fees/ deposits and documents. The documents of the member are then forwarded to SEBI for registration.
4. After satisfying itself as to compliance with respect to all the prescribed norms, SEBI grants a Registration Certificate in the name of the applicant.
5. The dealers on CM segment are required to clear the Capital Market (Dealers) Module of NCFM; dealers on Futures & Options Segment are required to clear the Derivatives Market (Dealers) Module or equivalent examination of NCFM .