Derivatives Segment - Documentary Evidence of Financial Details

#1
Hey anyone received any mail regarding Documents required for trading in derivatives from April 1. I am pretty much confused about these documents.

Can anyone tell me details regarding these "Copy of Annual Accounts" "Net worth certificate " "demat account Holding statement "

Following is the list of docs they asked:

1. Copy of ITR Acknowledgment (For last financial year)
2. Copy of Annual Accounts (for last financial year )
3. Copy of Form 16 in case of salary income (for last financial year)
4. Net worth certificate (latest one or at the end of last financial year)
5. Salary Slip (for one month in current financial year)
6. Bank account statement (for last 6 months)
7. Copy of demat account Holding statement (not more than 3 months old)
8. Any other relevant documents substantiating ownership of assets.
 

Alchemist

Administrator
Staff member
#2
1. I am not sure what "Copy of Annual Accounts" means.

Most individuals don't maintain any "accounts" as such.

They just fill up the income tax return at the end of year.

2. "Demat Holding Statement" is the demat statement that your DP sends you from time to time.

3. "Net Worth Certificate" can be obtained from a CA.

Sebi also proposed for the first time certain minimum net worth requirement norms (around Rs 5 Lakh) for an investor to trade in the derivatives segment. A net worth certificate from a practicing chartered accountant (CA) or acknowledgment for income tax return filed should be accepted in this regard.
http://www.financialexpress.com/news/sebi-for-net-worth-norms-in-f&o/290810/
 

vasa1

Well-known member
#3
This whole stuff is still in the proposal stage, right? At least that's the impression I got from Alchemist's FE link. So who is sending out mails asking for all this?
 
#4
Thanks Alchemist for the clarification..

@Vasa1 i received an email from hdfc reagarding this in which they said it is necessary to provide them with the docs in case trading in derivatives is to be done. And this will come into effect from April 1 2010.
 
Last edited:
#5
here's the full SEBI circular:

http://www.sebi.gov.in/circulars/2009/mirsdcir1909.pdf

more by Karvy

http://www.karvy.com/docs/dealing_with_policies_and_procedures.pdf

Indiabulls has sent this e-mail:

Dear Client,

This has reference to SEBI Circular No MIRSD/SE/Cir – 19 / 2009, dated 03-December-2009 & clarifications issued by Exchanges vide Circular no. NSE/INSP/2010/91 (NSE) and notice no. 20100203-30 (BSE) dated February 3, 2010.

Please note that submission of documentary evidence of financial details is must in case if you wish to trade in Derivatives Market.

You are, therefore, requested to immediately submit a valid income proof along with the attached annexure with Indiabulls Securities Limited:

Alternatively, you can also submit these documents at your Indiabulls Service Branch.

Kindly ensure that the said proof(s) reach us at the aforementioned address latest by 21st March 2010 to avoid any inconvenience.

For your reference, following list indicates the list of valid income proofs, either of which can be submitted, towards meeting this requirement:

1. Copy of ITR Acknowledgment (For last financial year)
2. Copy of Annual Accounts (last financial year for individuals, last two financial years for non individuals)
3. Copy of Form 16 in case of salary income (for last financial year)
4. Net worth certificate (latest one or at the end of last financial year)
5. Salary Slip (for one month in current financial year)
6. Bank account statement (for last 6 months)
7. Copy of demat account Holding statement (for the current financial year)
8. Any other relevant documents substantiating ownership of assets.

For Company accounts, the following Proofs would be required:

1. Copies of the balance sheet for the last 2 financial years (copies of annual balance sheet to be submitted every year)
2. Copy of latest share holding pattern including list of all those holding more than 5% in the share capital of the company, duly certified by the company secretary / Whole –time director / MD. (Copy of updated shareholding pattern to be submitted every year)

Things to note:

1. The document must be self attested
2. It is mandatory to submit the financial proof(s) on yearly basis, incase you opt to trade in derivatives segment.
3. The proof submitted shall be valid for 1 year only & needs to be submitted every 12 months.
4. Please note that only the hard copy of the income proof would be accepted for processing.

HDFC Sec:

http://www.hdfcsec.com/Research/ContentPage.aspx?ShortCode=CircularMar10
 
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