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| FAQs
- Membership |
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| Admission
of Members |
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Who
can become a member
of MCX? |
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| Following
types of entities
are eligible to become
members of MCX: |
- Individual
/ Proprietorship
Firm
- Registered
Partnership Firm
- Hindu Undivided
Family (HUF)
- Private Limited
Company
- Public Limited
Company
- Co-operative
Societies
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What
are the categories
of Membership offered
by MCX? |
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- Trading-cum-Clearing
Member (Deposit
Based)
- Trading-cum-Clearing
Member (Non-Deposit
Based)
- Professional
Clearing Member
- Institutional
Trading-cum-Clearing
Member
- Trading Member
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What
are the rights available
to various categories
of membership? |
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What
are the eligibility
criteria for various
categories of Membership
of MCX? |
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What
is the fee and deposit
structure for various
categories of Membership
of MCX? |
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What
is the process required
to be followed for
acquiring membership
at MCX? |
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Can
an entity holding
membership of a Stock
Exchange apply for
the membership of
MCX? |
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| No.
However, such an entity
can float another
entity to seek membership
of MCX. |
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What
should be the main
object clause in the
Memorandum & Articles
of Association to
trade in trading in
commodity derivatives? |
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Whether
a designated director in
an entity having membership
of BSE can be a designated
director in an entity acquiring
membership of MCX? |
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Whether
a qualifying/designated
director in an entity having
membership of NSE can be
a designated director in
an entity acquiring membership
of MCX? |
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What
are the networth requirements
for various categories of
Membership of MCX? |
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| Security
Deposit |
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In
what form the initial
interest free security
deposit can be given
to MCX? |
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| The
initial interest free
security deposit is
required to be given
minimum 50% in the
form of Cash and balance
in the form of Fixed
Deposit Receipts /
Bank Guarantee. |
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What
is the lock-in period
for initial interest
free security deposit? |
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| The
lock-in period for
initial interest free
security deposit is
three years. |
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Which
are the banks from
where the Fixed Deposit
Receipts (FDR) and
Bank Guarantee (BG)
can be obtained? |
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Are
there any specific
formats prescribed
by MCX for submission
of Fixed Deposit Receipts
(FDR) and Bank Guarantee
(BG).? |
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| Change
in Shareholding Pattern/ Sharing Pattern |
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What
are the requirements of
MCX relating to changes
in shareholding/ sharing
pattern? |
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What
are the documents to be
submitted for changes in
shareholding, designated
directors, trade name etc.? |
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Is
prior approval of the Exchange
is required for any change
in sharing pattern / shareholding
pattern? |
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| No
prior approval for change
in shareholding (for corporates)
/sharing pattern (partnership
firms) is required if such
change: |
- Does not alter the
shareholding/share of
DPG constituents in
percentage terms,
- Does not lead to
addition or deletion
of a DPG constituent
and
- Does not result in
change of management/
control.
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| Prior
approval is required for
all other cases. Please
refer to Circular No. MCX/MEM/132/2008
dated April 15, 2008. |
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| Dominant Promoter Group |
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What
is Dominant Promoter
Group (DPG)? |
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| An
applicant for membership
is required to identify
a set of maximum four
individuals termed
as the "Dominant Promoter
Group" who are required
to hold minimum 51%
equity stake/sharing
ratio in directly
or indirectly in the
member company/partnership
firm for a minimum
period of at least
three years from the
date of grant of membership.
At the end of three
years DPG can be changed
with exchange's prior
approval. |
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Are
there any circulars
regarding DPG? |
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| Yes,
Circular No. MCX/MEM/132/2008
dated April 15, 2008,
Circular No. MCX/MEM/151/2007
dated April 20, 2007
and Circular No. MCX/150/2006
dated April 6, 2006
of the exchange regarding
change of shareholding
also cover the concept
of DPG. The circulars
are available on MCX
website under the
"Membership" section. |
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What
is the minimum percentage
DPG should hold in
a company/partnership
firm? |
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| DPG
should hold minimum
51% of the paid up
equity capital/sharing
ratio in a company/partnership
firm. |
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If
individuals desirous
of being identified
as DPG, fall short
of 51%, is there any
way out for them? |
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| Yes.
They can take support
and form DPG. |
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Who
can give support to
the DPG constituents? |
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| The
shareholders who are
close relatives namely
parents, spouse, children
(and their descendants),
brothers and sisters
can provide support
by giving an irrevocable,
unconditional undertaking
in the prescribed
format of the Exchange.
The format is given
in the Circular no.MCX/COMP/207/2007
dated June 05, 2007 |
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Whether
a corporate shareholder
can be a DPG constituent? |
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If
a member is a subsidiary
with majority of its
equity stake held
by the parent, how
can the DPG be identified? |
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DPG
can be a combination
or either of direct
and indirect holding
of DPG constituents
in the member company.
For example, if 40%
stake is held by individual
DPG constituents in
a member company and
60% held by a corporate
ABC, then DPG can
be identified by adding
direct stake to indirect
stake of the DPG constituents
in the member company.
However, the indirect
stake would be calculated
on a proportionate
basis. In the instant
case, if the DPG constituents
hold 25% in ABC, the
indirect eligible
stake would be (60*25)/100=15%.
Thus the DPG would
be 40 %(direct) +
15 % (indirect support)
=55%.
If the entire stake
of the member company
is held by a corporate,
the DPG can be identified
from the parent company
in the same manner
as identified for
a member company,
as described in question
no.1.
The DPG shareholders
will have to submit
corporate support
undertaking along
with the board resolution
for corporate support
to form DPG in Member
Company. |
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Whether
requirement of DPG
is applicable to a
listed membership
applicant company? |
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Whether
requirement of DPG
is applicable to a
member applicant which
is a subsidiary of
a listed company? |
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| Transfer/Transmission/ Surrender |
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What
are the requirements relating
to transfer of membership? |
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| For transfer of membership, you may refer to Circular No. MCX/MEM/036/2007 dated January 29, 2007. |
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What are the requirements relating to transmission of membership? |
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| For transmission of membership, you may refer to Circular No. MCX/MEM/420/2007 dated November 13, 2007. |
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What are the requirements relating to surrender of membership? |
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| For surrender of membership, you may refer to Circular No. MCX/MEM/189/2008 dated June 03, 2008. |
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| Miscellaneous |
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Who is the regulator for Commodity Exchanges in India? |
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| Forward Markets Commission (FMC) |
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What are the applicable rates for transaction charges? |
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| The transaction charges are given in Circular No. MCX/C&S /172/2007 dated May 3, 2007. |
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What are the formalities for appointment of authorized signatories in case of Corporate Members? |
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| The member has to forward a request to Membership Department with covering letter and board resolution. |
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Is nomination facility is available for MCX Membership? |
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| Yes, only in case of individual MCX members. You may please refer to Circular No. MCX/111/2006 dated March 18, 2006 |
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For Latest commodity futures prices, SMS “MCX
<space> <Commodity
Name>“ to 58888 |
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