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1. This is with reference to the letter MRD/DSA/OW/14347/4/2019 dated June 10, 2019 issued to NSE regarding refund of security deposit and arbitration mechanism after the surrender of membership of Trading Members (Annexure 1). 2. In this regard, following is advised to all exchanges regarding refund of security deposit on surrender of membership by Trading Members: A. On approval of application for surrender of Trading Member’s registration by SEBI, the Exchange shall release Security Deposit of the Trading Member (engaged in trading on behalf of clients) after the period mentioned at point a) or b), whichever is earlier: (a) Three years from the date of receipt of surrender application by Exchange from the Trading Member (in order to meet any investor claims), or (b) Five years from the date of disablement of Trading Member’s trading terminals by the Exchange. B. On approval of application for surrender of Trading Member’s registration by SEBI, the Exchange shall release Security Deposit of the Trading Member (engaged only in proprietary trading in last three years prior to the date of application) after the period mentioned at point a) or b), whichever is earlier: (a) one year from the date of receipt of surrender application by exchange from the Trading Member, or (b) three years from the date of disablement of Trading Member’s trading terminals by the Exchange.