Membership

Admission of Member

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
  • Trading-cum-Clearing Member (Deposit Based)
  • Trading-cum-Clearing Member (Non-Deposit Based)
  • Professional Clearing Member
  • Institutional Trading-cum-Clearing Member
  • Trading Member
Yes. The entity applying for Membership of MCX should not contain Stocks, Securities, Shares, Forex, Comdex, Comex, Exchange or words of similar nature in their name.
No. However, such an entity can float another entity to seek membership of MCX.
Following are the circulars regarding issue of contract notes by members:
For the lock-in period for initial interest free security deposit you are requested to refer Circular No. MCX/MEM/048/2015 dated February 19, 2015.

Security Deposit

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.
For the lock-in period for initial interest free security deposit you are requested to refer Circular No. MCX/MEM/048/2015 dated February 19, 2015.

Change in Shareholding Pattern

You may please refer to 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

The formats for documents prescribed are available at our website www.mcxindia.com under Membership / Continuing Compliances - Membership Related.

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.

Prior approval is required for all other cases. Please refer to Circular No. MCX/MEM/132/2008 dated April 15, 2008.

 

As per Circular No. MCX/357/2006 dated September 02, 2006, penalty for not taking prior approval is as below:-

  • Any change in the shareholding pattern /profit sharing ratio without the prior approval of the Exchange involving dilution not below the minimum prescribed shareholding of the dominant promoter group.- Rs. 10,000/-
  • Any other change in the shareholding pattern / profit sharing ratio of the Trading Member without the approval of the Exchange- Rs. 2500/-
  • Change in the shareholding pattern without the approval of the Exchange which has resulted in the dilution of the shareholding / profit sharing ratio of the dominant group below 51%- For few instances Rs. 25000/- and multiple instances- 50,000/-.

If prior approval is not required, member is required to intimate the Exchange within 21 days as per Circular No. MCX/MEM/132/2008 dated April 15, 2008.

Dominant Promoter Group

DPG should hold minimum 51% of the paid up equity capital/sharing ratio in a company/partnership firm.

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.

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 covers the concept of DPG. The circulars are available on MCX website under the "Membership" section.

DPG should hold minimum 51% of the paid up equity capital/sharing ratio in a company/partnership firm.
 
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.



No. However the Member is required to identify the Promoter Group.

The relatives who can support DPG constituent are as follows- 

List of relatives in terms of clause (77) of Section 2 of Companies Act, 2013-

  • Father (Provided that the term ‘’Father includes step father’’)
  • Mother (Provided that the term ‘’Mother includes step mother’’)
  • Son (Provided that the term ‘’Son includes step son’’)
  • Sons’ Wife
  • Daughter
  • Daughters’ husband
  • Brother (Provided that the term ‘’Brother includes step brother’’)
  • Sister (Provided that the term ‘’Sister includes step sister’’)

Transfer/Transmission/ Surrender

For transfer of membership, you may refer to Circular No. MCX/MEM/036/2007 dated January 29, 2007.
For transmission of membership, you may refer to Circular No. MCX/MEM/420/2007 dated November 13, 2007.
For surrender of membership, you may refer to Circular No. MCX/MEM/189/2008 dated June 03, 2008.
You are requested to refer Circular no. Circular No. MCX/MEM/048/2015 dated February 19, 2015. for the latest amendment.

Authorised Person

For Authorised Person processing fees, you may refer Circular no. MCX/MEM/324/2016 dated September 29, 2016.

For Appointment of Authorised Person, you may refer clause no.13. “Eligibility Criteria” of circular no. MCX/MEM/324/2016 dated September 29, 2016.

 A1. Any person who is appointed as such by a Member and who provides access to  

 trading platform of a Exchange as an agent of the Member is an Authorised Person. 

A2. The following persons meeting the requisite eligibility criteria as prescribed SEBI shall be appointed as an Authorised Person: 

  • An individual (including proprietor) who is a resident of India
  • A Partnership Firm registered under Indian Partnership Act, 1932.
  • A Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008
  • A Body Corporate registered under the Indian Companies Act, 1956.

A3. No, an HUF cannot be appointed as an Authorised Person.

A4. No, a partner or director of a registered Authorised Person cannot be appointed as an authorised person in any capacity on the same stock exchange. 

A5. No, currently MCCP certification is not required for Appointment of Authorised Person. 

A7. Yes, Authorised Person can receive remuneration ‐ fees, charges, commission, salary, etc. for his services only from the Member and shall not charge any amount directly from the clients. 

A7. Yes, Registration of Firm (ROF) Certificate also needs to be submitted along with the Partnership deed for registering the partnership firm as Authorised Person. 

A8. No, an Authorized person has to be affiliated with only one Member of the Exchange. A person shall not be appointed as Authorized Person by more than one member on the same Exchange. 

A9. No, Authorised person can apply for Cancellation with the current Member and can apply for registration with new Member.

Change in Director/Designated Director

 For change in Non-Designated Director no prior approval is required, but in case of change in Designated Director prior approval of the Exchange is required. 

There must be atleast two Designated Director at any given point of time.

Debit Instruction (in case of TM authorisation letter for their clearing Member.)

The Designated Director should have minimum two years of Experience in any of the following.

  • Dealing in Commodities;
  • Dealing in Securities;
  • as portfolio managers or
  • as investment consultants.
The Designated Director has to be minimum HSC qualified. 
The copy should be self-certified & certified by the Chartered Accountant along with rubber stamp of C.A. Firm.

No, but he can become the Non-Designated Director.

 

Change of Address

Yes, Member has to intimate the Exchange about each change of address carried out. The formats for change of address are available on our website athttps://www.mcxindia.com/membership/existing-members/continuing-compliances -> Change of Address

 

The member can have only one address for the correspondence from the Exchange.Additionally, corporate member have to update with the Exchange the Registered office address as registered with ROC.

Annual Returns

All the members who are enabled/ activated for trading on the Exchange till March 31, are required to furnish Annual Returns to the Exchange.
The last date to submit Annual Returns for F.Y. 14-15 to the Exchange is January 31, 2016.
The member having accounting year ending on any date other than March 31, are required to submit Annual Returns within a period of 6 months from the close of accounting year followed by the member.
The member should inform the Exchange about change in the accounting year on or before last date of submission every year.
The prescribed formats for the documents (as per the constitution) to be submitted are available at our website www.mcxindia.com /Membership /Compliance/ Annual Submission / Annual Returns.
Inactive member is a member (defined for the purpose of current Annual Returns submission) who has not undertaken any trade on the Exchange in the financial year (i.e. April 1,2014 to March 31, 2015)
Documents required to be submitted in Annual Returns by Inactive Members are:
  • Declaration Cum Confirmation for Inactive Members
  • Networth Certificate and Computation thereof as per the prescribed format of the Exchange
  • Present Contact Details
  • Details of Principal Officer– FIU - IND in terms of Prevention of Money Laundering (Amendment) Act, 2012
  • Details of Designated Director – FIU - IND in terms of Prevention of Money Laundering (Amendment) Act, 2012
  • Declaration on guidelines issued by FMC dated May 6, 2014
No, piecemeal submission will not be entertained by the Exchange.
Non-Compliance with the above timelines will result in appropriate action including levy of late/non-submission penalty at the rate of Rs 200/- per day.
Member is requested to refer circular no. MCX/MEM/259/2009 dated June 16, 2009 for maintenance of minimum networth by TCM member.
TM, ITCM and PCM member should maintain the networth as per the scheme in which they had applied for the membership of the Exchange.
For non-production/improper submission of networth certificate will attract non-submission penalty of Rs. 200/- per day as per circular no. MCX/COMP/113/2010 dated April 05, 2010.
The member who has already furnished the documents prior to the issuance of circular need to furnish the differential /remaining documents, as per the checklist on or before last date of submission.
You may forward your questions/queries via an email at membership@mcxindia.com. Please mention subject line as “Annual Return Query FY-2014-15”. You are also required to mention the Member Name, Member ID, Name of the Person to be contacted and the Contact Number in the body of your email.
The link for submission of Annual Returns through MCX eXchange is available at www.mcxindia.com.
Yes, it is mandatory to submit Annual Returns in the soft form along with the hard copy submission in the current year.

Change in Trade Name

Yes, prior approval of the Exchange is required. 

 Yes, Member is required to apply to the Exchange for name change from Pvt Ltd to Ltd and vice versa.

Debit instruction (in case of TM, authorisation letter from clearing member).

The words like ‘Securities’, ‘Comex’, ‘Comdex’,’Exchange’, ‘National’,’International’ cannot be used in the Trade name.

Miscellaneous

The member has to forward a request to Membership Department with covering letter and board resolution.
Yes, only in case of individual MCX members. You may please refer to Circular No. MCX/111/2006 dated March 18, 2006
The transaction charges are given in Circular No. MCX/C&S /53/2014 dated February 26, 2014.

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