Circular no.

: MCX/MEM/138/2013 April 11, 2013

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Requirement of Base Minimum Capital (BMC)

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In terms of the provisions of the Rules, Bye-laws, Business Rules of the Exchange, all the
Members are notified as under:

Forward Markets Commission (FMC) vide their letter no. 6/12/2012-MKT-I dated March 8,
2013 have directed to the effect that:

I. All types of Members of the Exchange without Algo trading and with Algo trading
shall have to deposit by way of interest free Base Minimum Capital (BMC) of Rs.
10 lacs and Rs. 50 lacs respectively to the Exchange.

II. No exposure will be given on this BMC.

III. Minimum 25% of the above deposit shall be in the form of cash and balance 75%
may be in the form of cash equivalents like Fixed Deposit/ Bank Guarantee.

IV. The Members are required to deposit 50% of the applicable BMC by April 30, 2013
and remaining 50% by September 30, 2013. In case, a Member fails to comply
with this requirement, the Exchange will block the Member’s existing security
deposit if any, held with the Exchange towards the BMC, and the balance, if any,
shall be deposited by the Member by the respective dates.

V. Trading Members, who clear and settle their trades through others, are required to
deposit the aforesaid BMC to the Exchange by the respective dates.

VI. BMC would be kept in a separate account by the Exchange and would be used
only towards settlement of claims of the clients, payment of arbitration fee by the
Member and dues payable by the Member on account of pending arbitration cases
/ arbitration awards and would not be used for meeting any of the Exchange’s
dues.

VII. If the Member fails to comply with the aforesaid BMC requirement by the
respective due date(s), the Member’s trading terminal will be deactivated for
trading from May 01, 2013 or October 01, 2013, as the case may be, and the
trading facility shall remain deactivated until above requirements are fully complied
with. In addition the member will be liable for consequential measures, if any, in
this regard.
The applicable BMC amount and the respective due dates to be paid by a Member are
given hereunder:

Particulars Applicable To be paid by April 30, To be paid by September

Base 2013 30, 2013 (Rs. in lacs)
Minimum (Rs. in lacs) 50% of BMC balance 50% of BMC
Capital
(Rs. in lacs)
A Member 10 Minimum Rs.1.25 in cash Minimum Rs. 1.25 in cash
without and balance Rs.3.75 in and balance Rs.3.75 in
Algo Cash equivalents (Fixed Cash equivalents (Fixed
Trading Deposit/ Bank Guarantee) Deposit/ Bank Guarantee)
A Member 50 Minimum Rs. 6.25 in cash Minimum Rs. 6.25 in cash
with Algo and balance Rs. 18.75 in and balance Rs. 18.75 in
Trading Cash equivalents (Fixed Cash equivalents (Fixed
Deposit/ Bank Guarantee) Deposit/ Bank Guarantee)
Those members who opt for Algo trading will not be able to withdraw the additional
BMC of Rs. 40 Lacs (subject to the maintenance of applicable Initial Security Deposit)
for a period of 12 months should they later opt for non Algo trading. This amount would
be retained without any exposure.

VIII. The Base Minimum Capital (BMC) along with the applicable Initial Security Deposit
(ISD), if any, (i.e. ISD as available after the adjustment as stated above in point no.
IV), shall be refunded to the Member after three years from the date of issue of
advertisement by him with respect to surrender of membership and will be subject
to approval of surrender of membership from the Exchange, Forward Markets
Commission (FMC) and fulfillment of all dues /compliances under the Bye-laws,
Rules and Business Rules of the Exchange, Forward Markets Commission and
circulars issued there under. The said BMC along with Initial Security Deposit may
be retained by the Exchange beyond the stipulated period, if any unfulfilled
obligations including arbitration claims, investor complaints other
grievances/claims, disciplinary action etc, against the Member come to the
Exchange’s notice before the stipulated period of release of BMC and Initial
Security Deposit (ISD).

IX. The above stipulations of interest free BMC (without any exposure being allowed)
will also be applicable at the time of admission as a new Member and will
accordingly be blocked from the Initial Security Deposit (ISD) applicable for the
type of membership applied for. In all such cases the ratio of cash versus cash
equivalents for the BMC portion will be as specified above (1:3) and for the
balance Initial Security Deposit (ISD) portion, if any, it will be 1:1.
 X. The formats of the cash equivalents such as Fixed Deposits/ Bank Guarantee are
available at Exchange website at www.mcxindia.com>Market Operations >
Clearing & Settlement > Collaterals

J. B. Ram
Sr. Vice President
Membership & Inspection
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Kindly contact Customer Support on 022-66494040 or send an email at
customersupport@mcxindia.com for any clarification.

----------------------------------------------- Corporate office ----------------------------------------------

Multi Commodity Exchange of India Limited
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Tel.: 022 – 6649 4000 Fax: 022 – 6649 4151
www.mcxindia.com email: customersupport@mcxindia.com