|
|
|
|
|
|
|
|
|
|
| FAQs
- Compliance |
| |
| |
| |
|
| |
| Opening
Client Account |
|
 |
What are the Circulars of the Exchange regarding Know Your Client Forms? |
|
|
| Following are the circulars regarding Know Your Client Forms: |
|
|
|
|
|
|
What
are the requirements
related to Know
Your Client
Form? |
|
|
| You
may please refer
to Circular
No. MCX/206/2008
dated June 16,
2008. |
|
|
|
|
|
What
are the valid
documents which
can be collected
as address proof,
identity proof
and proof of
bank account
from clients? |
|
|
|
|
|
|
Can
electricity
bills/telephone
bills be collected
as an address
proof along
with KYC forms? |
|
|
| Yes,
the electricity
bills/telephone
bills can be
collected as
an address proof
along with KYC
forms but such
bills should
not be more
than three months
old. |
|
|
|
|
|
Are
members required
to collect PAN
details from
their clients,
residing of
the state of
Sikkim, along
with other KYC
requirements? |
|
|
| According
to clarification
provided by
Forward Markets
Commission,
members may
exempt prospective
individual clients,
residing of
the state of
Sikkim from
PAN requirements.
But the members
need to ensure
that a system
of proper verification
exists to verify
that such clients
are residents
of the state
of Sikkim. |
|
|
|
|
|
What
are the requirements
related to Member
Client Agreement? |
|
|
| You
may please refer
to Business
Rule 27 and
Annexure XI
of Business
Rules. |
|
|
|
|
|
What
are the requirements
related to Risk
Disclosure Document? |
|
|
| You
may please refer
to. Circular
No. MCX/206/2008
dated June 16,
2008. |
|
|
|
Top 
|
|
| |
| Contract
Notes and Brokerage |
|
|
|
Which are the Circulars of the Exchange regarding issue of contract notes by members? |
|
|
| Following are the circulars regarding issue of contract notes by members: |
|
|
|
|
|
|
What
is the format for issuing contract notes? |
|
|
| The contract notes
should be issued as per the format
prescribed in the Circular No.MCX/Legal/363/2008
November 15, 2008. |
|
|
|
|
|
When
are contract notes required to be issued to clients? |
|
|
| Contract Notes
are required to be issued to the clients
for all their transactions within
24 hours of the execution of the trade.
You may please refer to Circular No.
MCX/COMP/195/2008
dated June 06, 2008. |
|
|
|
|
|
What
is the requirement
with respect
to numbering
the contract
notes? |
|
|
| Contract
notes are required
to be serially
numbered beginning
from one, which
is to be reset
only at the
beginning of
the next year.
In case the
member has more
than one office,
Member can set
separate series
numbers with
dealing office
name or code
as a prefix
to the serial
number. You
may please refer
to Circular
No. MCX/012/2006
dated January
10, 2006. |
|
|
|
|
|
Can
a member issue digital contract notes? |
|
|
|
|
|
|
Are
physical contract notes required to be issued in
addition to digital contract notes? |
|
|
| In addition to
digital contract notes, on request
from client, Member has to provide
physical Contract Notes. Please refer
Circular no. MCX/304/2007
dated September 01, 2007 |
|
|
|
|
|
Is there any requirement of maintaining evidences of dispatch of contract notes to clients? |
|
|
|
|
|
|
Is
it mandatory to show Brokerage amount separately
on the contract notes? |
|
|
| Yes, the specified
format for contract note requires
brokerage amount to be shown separately.
You may please refer to Business
Rule 28 and Circular No.MCX/Legal/363/2008
November 15 , 2008. |
|
|
|
|
|
What
is the maximum permissible brokerage amount? |
|
|
| The maximum permissible
brokerage rate is 1 % in case of non-delivery
transactions and 2 % (plus expenses)
in case of transactions resulting
into delivery. You may please refer
to the Business
Rule 28. |
|
|
| Top
|
|
| |
|
| Books of Accounts |
|
|
|
What are the references regarding maintenance of books of accounts? |
|
|
| Following are the references regarding maintenance of books of accounts: |
- Bye-law
2.3.11, 4.23,
11.5, 11.6
- Business
Rule 35.
- Circular No.
MCX/COMP/113/2010dated April 05, 2010
- Circular No.
MCX/COMP/399/2009dated September 30, 2009
- Circular No.
MCX/COMP/195/2008
dated June 06,
2008.
- Circular No.
MCX/COMP/183/2008
dated May 27,
2008.
- Circular No.
MCX/COMP/304/2007
dated September
01, 2007.
- Circular No.
MCX/357/2006
dated September
02, 2006.
- Circular No.
MCX/012/2006
dated January
10, 2006.
|
|
|
|
|
|
What
is the period for
which books of accounts
are required to be
maintained? |
|
|
| Books
of records are required
to be preserved for
a minimum period of
three years except
order log/ trade log
which are required
to be preserved for
a period of minimum
seven years. |
|
|
| Top
|
|
| |
| Annual Compliance Report |
|
|
|
What are the references regarding submission of Annual Compliance Report? |
|
|
| Following are the references regarding submission of Annual Compliance Report: |
|
|
|
|
|
|
What is the procedure for submitting Annual Compliance Report by Members to the Exchange? |
|
|
|
|
|
|
What
is the last
date of submission
of ACR for Financial
Year 2009-10? |
|
|
|
|
|
|
Can the Compliance Officer sign the Annual Compliance Report (ACR)? |
|
|
|
|
|
|
If certain points in ACR are not applicable, what should members do? |
|
|
| Write ‘N.A.’ in the designated area and reason for non-applicability in respective remarks column. |
|
|
| Top
|
|
|
| |
| Anti Money Laundering |
|
|
|
What are the circulars of the Exchange regarding Prevention of Money Laundering Act? |
|
|
|
|
|
|
What are the requirements regarding appointment of Principal Officer? |
|
|
| Members/intermediaries are required to designate a senior management officer located at head/corporate office as Principal Officer. The name, designation and addresses of the Principal Officer are required to be intimated to the office of the Director - Financial Intelligence Unit (FIU) - India. You may please refer to Circular No. MCX/COMP/488/2009 dated November 27, 2009 for details. |
|
|
|
|
|
Which type of transactions are required to be reported to FIU-IND? |
|
|
| Members/ intermediaries are required to report below mentioned transactions to FIU-IND: |
- Cash Transactions
- Suspicious Transactions
You may please refer to Circular No. MCX/COMP/488/2009 dated November 27, 2009 for details. |
|
|
|
|
|
When Cash transaction Reports are required to be reported to FIU-IND? |
|
|
| The Cash Transaction Reports wherever applicable for each month should be reported to FIU-IND by 15th of succeeding month in the format prescribed in Annexure I of the Circular No. MCX/COMP/488/2009 dated November 27, 2009. Please refer the said circular for details. |
|
|
|
|
|
When Suspicious transaction Reports are required to be reported to FIU-IND? |
|
|
| The suspicious Transaction Reports should be reported within 7 days of arriving at a conclusion that any transaction, whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature in the format prescribed in Annexure II of the Circular No. MCX/COMP/488/2009 dated November 27, 2009. Please refer the said circular for details. |
|
|
| Top
|
|
|
| |
| Advertisement |
|
|
|
Are members required to obtain prior approval from Exchange before issuing advertisement for soliciting business? |
|
|
| Yes, you may please refer to Circular No. MCX/007/2005 dated January 03, 2005. |
|
|
|
|
|
Are there any Guidelines relating to issue of advertisements by members? |
|
|
| Yes,
you may please refer
to Circular No. MCX/003/2006
dated January 03,
2006. |
|
|
| Top
|
|
|
| |
| Office Management |
|
|
|
Are there any requirements relating to display of Notice Board? |
|
|
| Yes,
you may please refer
to Circular No. MCX/295/2006
dated July 28, 2006. |
|
|
|
|
|
At what places registration certificate issued by the Exchange is required to be displayed? |
|
|
| Registration certificate issued by the Exchange is required to be displayed at the member's head office and branches/sub-brokers' offices. |
|
|
|
|
|
Is it required for members to undergo system audit for CTCL and internet based trading? |
|
|
|
| Top
|
|
|
| |
| Fund Management |
|
|
|
When are members required to make payment of funds to their clients? |
|
|
| Members
are required to ensure
full payment of funds
has been made to all
clients within 48
hours of receiving
pay out from the Exchange. You may please refer to Circular No. MCX/Comp/304/2007 dated September 01, 2007 |
|
|
|
|
|
When are members are required to send statement of accounts for funds to their clients? |
|
|
| Statement of funds for accounts along with error reporting clause is required to be sent to all clients on quarterly basis. You may please refer to Circular No. MCX/Comp/304/2007 dated September 01, 2007 |
|
|
|
|
|
Is a member required to collect margin from his clients? |
|
|
| Yes, Members are required to collect margin from their clients. |
|
|
|
|
|
Is there any requirement of maintaining evidences of making payment to client on account of the mark to Market gains made by clients? |
|
|
|
|
|
|
Are Members allowed to accept cash from their clients? |
|
|
|
|
|
|
In what form payment can be received / made by members from/to clients? |
|
|
| All
payments can be received/made
by the members from/to
the clients strictly
by account payee crossed
cheques /demand drafts
or by way of direct
credit into the bank
account through EFT,
or any other mode
allowed by RBI. You
may please refer to
Circular No. MCX/Comp/304/2007
dated September 01,
2007 , MCX/Comp/250/2009
dated June 09, 2009
and MCX/Comp/401/2009
dated October 01,
2009 |
|
|
| Top
|
|
|
| |
| Miscellaneous |
|
|
|
Are
there any requirements
relating to appointment
of Compliance Officer? |
|
|
| Yes,
you may please refer
to Circular No. MCX/207/2006
dated May 19, 2006. |
|
|
|
|
|
What
are the documents
required to be submitted
by a member on an
annual basis? |
|
|
| A
member has to submit
the following documents
on an annual basis:
|
|
Annual
Compliance Report:
You may please refer
to latest Circular
No.MCX/COMP/183/2008
dated May 27,
2008.
Annual
Returns:
You may please refer
to latest Circular
No. MCX/COMP/183/2008
dated May 27,
2008. |
|
|
|
|
|
Can
multiple client codes
be allotted to a single
client? |
|
|
|
|
|
|
Is
there any circular
relating to list of
fines/penalties for
violations/non-compliances
observed in inspection
of members? |
|
|
|
|
|
|
Can
suspended/debarred
brokers, sub-brokers
and other entities
of Capital Market
participate in Commodity
derivative market? |
|
|
| No,
you may please refer
to Circular No. MCX/011/2006
dated January 10,
2006. |
|
|
|
|
|
Can
a member undertake
Portfolio Management
Activities? |
|
|
|
|
|
|
Is
there any format for
applying for Status
Report? |
|
|
|
|
|
|
Can
a member of MCX become
the client of another
member of MCX? |
|
|
|
|
|
|
Are
there any guidelines
with respect to use
of MCX logo? |
|
|
|
|
|
|
Is there any requirement
of maintaining evidences
of client placing
orders? |
|
|
|
|
|
|
What
are the circulars
of the Exchange regarding
Inactive Clients? |
|
|
| Following
are the circulars
regarding Inactive
Clients: |
|
|
|
| Top
|
|
| |
|
|
|
| |
|
|
|
 |
|
|
For Latest commodity futures prices, SMS “MCX
<space> <Commodity
Name>“ to 58888 |
|
 |
|
|
|
