Annexure 1

Format of Networth Certificate

(To be provided on the Letterhead of the certifying Chartered Accountant/ Company Secretary)

CERTIFICATE

This is to certify that the Networth of M/s.______________________ (Name of Member) as on

_____________as per the statement of computation of even date annexed to this report is
USD___________/- (in words USD ______________ only) #.

We further certify that:

 M/s._________________ (Name of Trading Member) is not engaged in any fund-based

activities or business other than that of securities. Existing fund based assets, if any, have
been divested from the books of account and have not been included for the purpose of
calculation of networth*.

 The computation of networth based on my/our scrutiny of the books of accounts, records
and documents is true and correct to the best of my/our knowledge and as per information
provided to my/our satisfaction.

 The computation of net worth is in accordance with the method of computation

prescribed by Schedule VI of SEBI (Stock Brokers and Sub Brokers) (Second
Amendment) Regulations, 2013/the method of computation prescribed by Dr. L C Gupta
Committee Report.

Place: For (Name of Certifying Firm)

Date:

Name of Partner/Proprietor
Chartered Accountants / Company Secretaries
Membership Number
Firm Registration No.

# The USD - INR reference rate published by Reserve Bank of India (RBI) as on _______ (Networth date) is 1USD
= Rs._______ is considered for calculation of Networth as on ____________(Networth date).

*If not applicable/non-compliant, confirmation to that effect should be clearly mentioned in the Networth certificate
along with justifications.
 Annexure-2

Method of computation of Networth as per Schedule VI of SEBI (Stock Brokers and Sub
Brokers) (Second Amendment) Regulations, 2013/Dr. L.C. Gupta Committee Report.

Computation of Networth as on_________________

Name of The Applicant:
Sr. Particulars USD USD INR INR
No. (Sub-Total) (Total) (Sub-Total) (Total)
1 Paid-up Capital 00 00
2 Free Reserve 00 00
3 TOTAL (1+2) 00 00
4 Non Allowable Assets
a) Fixed Assets 00 00
b) Pledged Securities 00 00
c) Member’s Card 00 00
d) Non-allowable securities 00 00
(unlisted securities)
e) Bad deliveries 00 00
f) Doubtful Debts and 00 00
Advances*
g) Prepaid expenses, losses 00 00
h) Intangible Assets 00 00
i) 30% of Marketable securities 00 00
Total Non-Allowable Assets 00 00
5 Total Networth as on _____ (3-4) 00 00

*Explanation: Includes debts/advances overdue for more than three months or given to
associates.

Place: For (Name of Certifying Firm)

Date:

Name of Partner/Proprietor
Chartered Accountant/Company Secretary
Membership Number
Firm Registration No.

# The USD - INR reference rate published by Reserve Bank of India (RBI) as on _______ (Networth date) is 1USD
= Rs._______ is considered for calculation of Networth as on ____________ (Networth date).