Agreement:
The TM has to sign an agreement with SHCIL to clear his trade in the format prescribed by NSE/BSE and suitably modified by SHCIL. The agreement has to be signed before the TM begins his trading. A copy of the CM-TM agreement will be forwarded to NSCCL/BSE. Along with the agreement the trading member should also submit :

  Board Resolution appointing SHCIL as clearing member

  Attested copy of Memorandum & Articles of Association

  Copy of SEBI registration certificate

  Board Resolution appointing SHCIL as clearing member

  Board Resolution appointing SHCIL as clearing member

Consent:
At the application stage, a TM must mention that Stock Holding Corporation of India Ltd. (SHCIL) will clear his trades.

Letter of consent from SHCIL can be obtained, which the TM has to forward to BSE/NSE as the case may be.

Application Form:
An application form, provided by SHCIL, to be filled by TM, giving details of addresses, phones, accounts etc. Approved e-mail addresses should be mentioned in the application for receiving daily bills.

MARGINS:
Trading Members have to deposit margins with the Clearing Member for the purpose of taking Exposure on the Exchange and for daily settlement. At SHCIL, there are two components of margins i.e. initial margin (IM) for exposure and maintenance margin (MM) for daily settlement.

Initial Margin(IM)

minimum Rs. 10 lakh as initial margin (IM) in either of the following ways:

entire Rs. 10 lakh in cash OR   Rs. 2 lakh in cash and Rs. 8 lakh as cash equivalent * OR   Rs 2 lakh in cash, balance Rs. 8 lakh as a combination of cash equivalent * and specified demat securities (subject to maximum of Rs. 5 lakh after valuation)

Note: The above proportion is valid for NSE. For BSE minimum cash requirements are Rs.2.5 lakh. BSE Members can start trading with Rs 7.50 lakh(Rs.2.5 lakh in cash, balance Rs. 5.00 lakhs as a combination of cash equivalent and specified demat securities (subject to maximum of Rs. 2.50 lakhs after valuation)

Maintenance Margin (MM)

A trading member has to deposit a certain percentage of initial margin (IM) in cash only towards his daily settlement of marked-to-market margins, premiums or any other charges payable by the TM.