Membership Department

MEMBERSHIP DEPARTMENT

CIRCULAR NO. 340

NSE/MEM/4156 May 23, 2003

Sub : NSE Stock Brokers Insurance Cover-Renewal for the period June 01, 2003 to May 31, 2004

The Exchange has received a proposal for renewal of Stockbroker’s Indemnity Insurance policy from June 01, 2003 to May 31, 2004from one of the insurance company namely The New India Assurance Company Limited.

A soft copy of the proposal received from The New India Assurance Company Limited giving the details of the premium payable and salient features of the policy are given in Annexure.

Trading members are requested to take note of the same.

For National Stock Exchange of India Ltd.

Framroze Pochara

Vice President

THE NEW INDIA ASSURANCE COMPANY LIMITED

JeevanSahakarCo.OperativeInsuranceBuilding

4th Floor, Sir P. M. Road

Mumbai 400 001

Tel : 266 1475, 266 3779, 263 4668, 266 1526

Fax : 267 2651 Email-

May 16, 2003

Dear Sirs,

Re : Renewal of your Stockbrokers' Ind. Insurance Policy - NSE Operations

As you are kindly aware that your above Policy is due to expire on the 31st May, 2003. We are glad to quote renewal premium at current levels with an additional reduced slab as desired by many brokers. We have finalized the Renewal Premium Rates as furnished hereunder slabwise, for favour of your kind perusal:

Basic Indemnity limit with one free reinstatement / Excess(Rs.) / Annual
Premium (Rs.) / Service *
Tax 8%(Rs.) / Total Payable(Rs.)
Rs. 10 Lakhs / 25000/- / 24,000/- / 1920/- / 25,920/-
Rs. 15 Lakhs / 25000/- / 30,000/- / 2400/- / 32,400/-
Rs. 25 Lakhs / 25,000/- / 34,500/ / 2760/- / 37,260/-
Rs. 50 Lakhs / 25,000/- / 58,000/ / 4640/- / 62,640/-
Rs. 100 Lakhs / 25,000/- / 94,500/ / 7560/- / 1,02,060/-
Rs. 250 Lakhs / 25,000/- / 2,11,000/ / 16,880/- / 2,27,880/-
Rs. 500 Lakhs / 25,000/- / 3,45,000/ / 27,600/- / 3,72,600/-

Member interested for higher indemnity limit than Rs.500/- Lacs, should contact the office for the rate. Covers for derivatives and internet based trading are included in the policy without any additional cost.

For the FIRST TIME we have provided COVER FOR LOSS FROM ERRORS AND OMISSIONS IN PUNCHING OF RATES IN PROPRIETARY TRADES within the above rates WITHOUT ANY ADDITIONAL PREMIUM. Indemnity limit for the said cover will be 10% of the Basic Indemnity Limit as per column 1 above. An excess of 25% of each claim subject to a minimum of Rs. 1 Lac will be applicable for this cover. The said cover is available only to a maximum of Rs. 20 lacs, subject to 10% of basic Sum Insured chosen.

While for your ready reference, we are sending herewith the salient features of the Policy, we are enclosing a brief Questionnaire which may kindly be returned to us duly completed and signed along with your premium cheque as applicable to the Indemnity Limit selected by you, drawn on your Mumbai Bank in our favour. In case you do not have facility for issuing Mumbai cheque, the amount may kindly be remitted by Demand Draft payable at Mumbai. Kindly make it convenient to send us your cheque/draft, so as to reach us on or before 31st May, 2003.

In case you require any further clarifications/information, kindly contact Mr. S.K. Rout, Sr. Divisional Manager,or Mr. Anant Narayan, Admn. Officer,or Mr.Sharma Asst. Manager, Mr. Kale and Mr. Sawant on any of the Telephone Numbers or Fax Number, Email given on the top.

Thanking you and assuring you of our best attention and services always,

Yours faithfully,

(S.K. ROUT)Sr. Divisional Manager.

THE NEW INDIA ASSURANCE COMPANY LIMITED

JeevanSahakarCo.OperativeInsuranceBuilding

4th Floor, Sir P. M. Road

Mumbai 400 001

Tel : 266 1475, 266 3779, 263 4668, 266 1526

Fax : 267 2651,

SALIENT FEATURES OF STOCK BROKERS INDEMNITY

INSURANCE FOR MEMBERS OF NATIONAL STOCK EXCHANGE OF

INDIA LIMITED, MUMBAI

The policy covers the following risks:

1.Infidelity of employees

2.Loss of securities and/or cash/property.

3.Dealing in counterfoil stolen/fake/forged securities.

4.Incomplete transaction as to point No.2 or 3 or deceived as to the identity of any person during physical delivery.

5.Computer related crimes.

6.Legal fees/cost in defence of any demand.

7.Errors and omissions(legal liability to third parties only).

8.Final receiving member broker cover for all trades after retroactive date.

9.Trade for Trade Transactions executed on behalf of institutional investors.

10.Inward transit of securities transacted through NSE, to the premises of the Trading member arranges collection through a full time employee or through a contracted courier agency.

11.Securities lying in the Member Brokers premises belonging to the clients for the NSE transactions & margins.

12.Cash in office and transit.

13.Trades other than Proprietory trades & employee trades in their own name.

14.Dematerialised securities trading & settlement.

15.Automatic lending and borrowing mechanism (ALBM).

Internet based trading, and settlement.
derivatives trading and settlement.
PROPRIETORY TRADE ONLY FOR PUNCHING ERROR / OMISSIONS IN RATES (INTRODUCED FIRST TIME WITHOUT ANY EXTRA PREMIUM)

BASIS OF VALUATION

Value of the document at the closing market price of the stock exchange on the day following the discovery, or the loss sustained as a result of auction of shares by NSE/or the real loss suffered whichever is less.

IMPORTANT:

The above are only representative details of the Policy. However for full details and other terms, kindly refer the policy document.

ADDITIONAL FEATURES/PROCEDURES

Premium charged is final and not linked with turnover. No details are require to be submitted in respect of delivery/non-deliver turnover.

Policy also covers loss of Securities/Cash surrendered as a result of threat.

The members will have six options of indemnity starting with Rs. 10 lakhs to Rs. 500 Lacs. The indemnity limit is the limit applicable in respect of any one claim and all the claims during the policy period. On exhausting the indemnity limit, the member will be given one free reinstatement of equal amount without payment of any premium

Each and every claim is subject to an excess of Rs. 25,000/-. In case of proprietory trade excess will be Rs. 1 lac. Or 25% of claim amount whichever is less.

Procedures to be followed for obtaining the policy: The members are requested to submit the enclosed Questionnaire form duly completed and signed with a cheque covering the premium on their Mumbai Bank favouring“THE NEW INDIA ASSURANCE COMPANY LIMITED”, so as to reach us on or before 31st May, 2003 for further action. Members unable to send cheque on Mumbai Bank account are requested to remit the premium by demand draft.

Policy will be issued in the name of individual broker and released within four weeks from the date of commencement of the risk alongwith detailed procedure to be followed in case of be followed in case of claims.

THE NEW INDIA ASSURANCE COMPANY LIMITED

JeevanSahakarCo.OperativeInsuranceBuilding

4th Floor, Sir P. M. Road

Mumbai 400 001

Tel : 266 1475, 266 3779, 263 4668, 266 1526

Fax : 267 2651,Email-

QUESTIONNAIRE FORM

POLICY PERIOD : 2003 – 2004

Name of the Trading Member
Postal Address
Telephone No.______Fax No.______
NSE code No.______SEBI Registration No.______
Indemnity Limit required for 2003-2004 Rs.______

Previous Insurance Particulars (applicable to New India Policy Holders for the Year 2002 – 2003)

a) Sum Insured.b) Policy No. 112700/46/02/ * . *(Pl. fill up last 5 digits from your last year policy)

Enclosure cheque/Draft for Rs.______bearing No.______

Of Bank______dtd.______

SIGNATURE OF THE TRADING MEMBER

Date: