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 / Dominant Promoter Group

YES, Exchange prior approval has to be obtained. Relevant circular nos. are MCX/MEM/324/2016 dated September 29, 2016 and MCX/MEM/068/2017 dated March 7, 2017.

Non-compliances will result in appropriate action as given below (refer Exchange Circular No. MCX/INSP/325/2016 dated September 29, 2016) :

Sr. Non-Compliance(s) Applicable Penalties
1 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.10000/-
2 Any other change in the shareholding pattern / profit sharing ratio of the Trading Member without the approval of the Exchange Rs.2500/-
3 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%

One or Few Instances : Rs 25,000/-

Multiple Instances : Rs 50,000/-

Exchange Circular nos. MCX/MEM/324/2016 dated September 29, 2016 and MCX/MEM/068/2017 dated March 7, 2017 shall be referred in this regard.

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 Directors / Partners

YES, Exchange prior approval has to be obtained for any change in the Designated Director. However, prior approval is required for change in Non-Designated Director.
YES, there must be atleast Two Designated Directors for the corporate member and atleast Two Managing Partners for Partnership Firm.

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 certified by the Chartered Accountant. Applicant can also show the originals to Exchange official at any of our branch and get the same certified from branch official.
YES, Board Resolution is required for each appointment or resignation of Director.

Change of Address

YES, Member has to intimate the Exchange about change of address carried out alongwith the supporting documents. The formats for change of address are available on our website at https://www.mcxindia.com/membership/Existing-Member/Continuing-Compliances/Change of Address

Annual Returns Submission

All the Members who have applied for SEBI registration and have been activated/enabled for trading on the Exchange till March 31 are required to submit the Annual Returns to the Exchange as per the prescribed format which are available on Exchange website: https://www.mcxindia.com/membership/existing-members/annual-returns

Inactive Members (defined for the purpose of submission of Annual Returns is “a Member who has not undertaken any trade on the Exchange during that particular financial year and also will not undertake any trade on the Exchange till the due date of submission of the Annual Returns”) are required to submit the Annual Returns comprising of the following documents only :

  • Present Contact and other Details
  • Declaration cum Confirmation for Inactive Members
  • Networth Certificate and computation thereof along with their Audited Financial Statements as on March 31, of that financial year.

No, Members are required to submit the complete details in Annual Returns as per the prescribed format along with all the relevant documents at one go on or before the stipulated due date.Piecemeal submissions will not be entertained.

The format for Annual Return is available on our website at “https://www.mcxindia.com/membership/Existing-Member/Annual Returns”

Non-compliances will result in appropriate action as given below (refer MCX/MEM/324/2016 dated September, 2016 and MCX/INSP/325/ 2016 dated September 29, 2016) :

Sr. Non-Compliance(s) Applicable Penalties
1 Late/Non- submission of Annual Returns Rs.200/- per day
2 Non-production / Improper submission of Networth certificate Rs.200/- per day
3 Non-compliance of Networth requirements as per the Exchange.

One or Few Instances : Rs. 1000/- per instance

Multiple Instances : Rs.5,000/- per instance.

Sr. Member Type Networth Requirement (in L C Gupta Format)
1 Stock Broker/ Trading Member -TM

Rs. 10 Lakh (for non-Corporate)

Rs. 25 Lakh (for Corporate)

2 Stock Broker and Self Clearing Member / Trading-cum-Clearing Member (Deposit Based) – TCM Rs. 100 Lakh
3 Stock Broker and Self Clearing Member / Trading-cum-Clearing Member (Non Deposit Based) – TCM Rs. 100 Lakh
4 Stock Broker and Clearing Member (Institutional Trading-cum-Clearing Member-ITCM Rs. 300 Lakh
5 Clearing Member / Professional Clearing Member - PCM Rs. 500 Lakh
You may forward your questions/queries via an email at membership@mcxindia.com. Please mention subject line as “Annual Return Query FY-”. You are also required to mention the Member Name, Member ID, Name of the Person to be contacted and the Contact Number alongwith the Nature of Query in the body of your email.
The help file for submission of details and uploading of Networth certificate alongwith the Audited Financial Statements is available on our website at “https://www.mcxindia.com/membership/Existing-Member/Annual Returns”
Yes, it is mandatory to submit Annual Returns strictly as per the prescribed format in physical as well as through MCX eXchange.

Change in Name

YES, Exchange prior approval has to be obtained.
Yes, Members should note that change in name of Member by addition/deletion of word “Private” would tantamount to change in status or constitution of the member. Accordingly, Members are required to seek prior approval of the Exchange by submitting an application.

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