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CERC (Procedures, Terms
and Conditions for grant
of license and other
related
matters)Regulations
By
Ravi Pohani
Contents
Requirements
to be a Trader
Procedure for
grant of
license
T&C of License
Contravention
and Penalties
Miscellaneous
Qualifications
Grant of License
Grant of License
Application to
CERC
Enclosure on
Applicant’s
website
Notification in
news papers
Affidavit of
notice of CERC
Address the
objections and
suggestions
License
granted and
public notice in
News Paper
T&C of the license Coordinate with RPC,
TU, LDCs
Adequate
Communication
Facilities
Trading Margins shall
not exceed
Shall not exceed
volume of
authorized trade
Comply to
present laws
Licensee Accounts
Separate
Entity
All
accounting
statement
s
Auditing
by
auditors/e
xperts
authorized
by CERC
Accounts
verificatio
n by CERC
auth.
Personnel
T&C cont.…
Informa
tion to
CERC
Frauds/Default/ insolvency
Transacti
ons
Annual
Report
Volume of
trade
Type of trading
license
Petitions filed
before commission
• Breech of code
• Significant change in circumstances which may affect ability to meet
obligations
• Any major change in shareholding pattern, management, ownership
Things to be Reported to the Commission
Contraventions by licensees
Contraventions
Serious
Violation of laws
Deliberate under
reporting of
transactions
Non Payment of
fee
Non-serious
Non submission/
delayed
submission of
prudential reports
Delayed monthly
transaction
reports
Failure to make
mandatory
disclosers
Penalties by Commissions
Penalties
Serious
Payment of =<Rs.
1 lk.. For each
contravention
Debar from
short/medium
term trading
Suspension for an
year
Revoke license
Non-serious
Warning
Issue of Other
such penal
directions
Penalty of =<1
Lakh
TIME LINE of LICENSE CATEGORIES
Category of License (according to
2004’s Notification)
F (>1000MU)
E (700-1000MU)
D (500-700MU)
C (200-500MU)
B (100-200MU)
A (<100MU)
Category of License (according to
2009’s Notification)
I (no limit)
II (<500MU)
III (<100MU)
Category of License (according to
2010’s Notification)
I (No Limit)
II (<1500MU)
III (<500MU)
IV (<100MU)
Thank-You

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Power Trading Regultions

  • 1. CERC (Procedures, Terms and Conditions for grant of license and other related matters)Regulations By Ravi Pohani
  • 2. Contents Requirements to be a Trader Procedure for grant of license T&C of License Contravention and Penalties Miscellaneous
  • 4. Grant of License Grant of License Application to CERC Enclosure on Applicant’s website Notification in news papers Affidavit of notice of CERC Address the objections and suggestions License granted and public notice in News Paper
  • 5. T&C of the license Coordinate with RPC, TU, LDCs Adequate Communication Facilities Trading Margins shall not exceed Shall not exceed volume of authorized trade Comply to present laws Licensee Accounts Separate Entity All accounting statement s Auditing by auditors/e xperts authorized by CERC Accounts verificatio n by CERC auth. Personnel
  • 6. T&C cont.… Informa tion to CERC Frauds/Default/ insolvency Transacti ons Annual Report Volume of trade Type of trading license Petitions filed before commission
  • 7. • Breech of code • Significant change in circumstances which may affect ability to meet obligations • Any major change in shareholding pattern, management, ownership Things to be Reported to the Commission
  • 8. Contraventions by licensees Contraventions Serious Violation of laws Deliberate under reporting of transactions Non Payment of fee Non-serious Non submission/ delayed submission of prudential reports Delayed monthly transaction reports Failure to make mandatory disclosers
  • 9. Penalties by Commissions Penalties Serious Payment of =<Rs. 1 lk.. For each contravention Debar from short/medium term trading Suspension for an year Revoke license Non-serious Warning Issue of Other such penal directions Penalty of =<1 Lakh
  • 10. TIME LINE of LICENSE CATEGORIES Category of License (according to 2004’s Notification) F (>1000MU) E (700-1000MU) D (500-700MU) C (200-500MU) B (100-200MU) A (<100MU) Category of License (according to 2009’s Notification) I (no limit) II (<500MU) III (<100MU) Category of License (according to 2010’s Notification) I (No Limit) II (<1500MU) III (<500MU) IV (<100MU)