Compliance

Opening Client Account

Following are the circulars regarding Know Your Client Forms:
You may refer following Circulars:
You may refer following Circulars:
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
According to clarification provided by Forward Markets Commission, members may exempt prospective individual clients, residing in 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.
You may please refer Circular No. MCX/COMP/126/2015 dated April 22, 2015 and Circular No. MCX/COMP/116/2014 dated April 1, 2014.
You may follow e-KYC service launched by UIDAI for KYC verification. For further details on the same you may refer to below mentioned circulars.
You may please refer to Circular No. MCX/COMP/080/2015 dated March 18, 2015 and MCX/COMP/126/2015 dated April 22, 2015 for the format of the same.

Contract Notes and Brokerage

Following are the circulars regarding issue of contract notes by members:
The contract notes should be issued as per the format prescribed in the Circular No. MCX/COMP/227/2013 dated June 28, 2013.
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 Circular No. MCX/COMP/195/2008 dated June 06, 2008 and Circular No. MCX/COMP/256/2011 dated July 20, 2011.
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 Circular No. MCX/012/2006 dated January 10, 2006.
Yes, Please refer to guidelines on issue of Electronic Contract Note as per Circular No. MCX/COMP/406/2014 dated December 26, 2014 .
You may please refer Circular No. MCX/COMP/406/2014 dated December 26, 2014 and Circular No. MCX/COMP/256/2011 dated July 20, 2011.
You may please refer Circular No. MCX/COMP/046/2011 dated February 23, 2011 and Circular No. MCX/COMP/399/2009 dated September 30, 2009.
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/COMP/227/2013 dated June 28, 2013,MCX/Legal/363/2008 November 15 , 2008 and Circular No. MCX/012/2006 dated January 10, 2006.
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.
You may please refer the following Circulars:
Circular No. MCX/COMP/227/2013 dated June 28, 2013 and MCX/COMP/406/2014 dated December 26, 2014 .

Books of Accounts

Following are the references regarding maintenance of books of accounts:
  • As per circular no. MCX/012/2006 dated January 10, 2006 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.
  • As per circular no. MCX/COMP/302/2013 dated September 5, 2013 and MCX/COMP/488/2009 dated November 27, 2009, a record of transactions is preserved and maintained for a period of ten years and that any transactions of suspicious nature are reported to the appropriate authority/ other authority.

Annual Compliance Report

Members are required to submit Annual Compliance Report in soft form through MCX eXchange as well as in hard form to the Exchange. The link for submission in soft form and format for submission of hard form is available at our website www.mcxindia.com under the link Membership> Compliances> Annual Submissions> Annual Compliance Report for the same.
ACR for a financial year is to be submitted by June 30 of the next financial year
Designated Director, Managing Director, Managing Partner, Proprietor, Karta, Authorized Signatory and Compliance Officer can sign the Annual Compliance Report (ACR) Are there any penalties prescribed for incorrect reporting in ACR?

Yes, members may note that incorrect reporting in the ACR will be viewed seriously and a penalty of Rs.2500/- per instance will be levied. Further, the Exchange may also take appropriate disciplinary action including levy of higher charges, if ACR is not submitted or incorrect reporting’s are made therein.
Yes, members may note that incorrect reporting in the ACR will be viewed seriously and a penalty of Rs 2500/- per instance will be levied. Further, the Exchange may also take appropriate disciplinary action including levy of higher charges, if ACR is not submitted or incorrect reporting’s are made therein.
  • If the member has complied to the requirement, the compliance status is to be mentioned as “Yes”.
  • If the member has not / partially complied to the requirement, the compliance status is to be mentioned as “No”.
    (reason for the same can be provided in the remarks)
  • If the said point is not applicable to the member, the compliance status is to be mentioned as “N.A”.
    (reason for the same is to be provided in the remarks as the same is a mandatory requirement).

Anti Money Laundering

You may please refer to the Circular No. MCX/COMP/488/2009 dated November 27,2009, Circular No. MCX/Comp/313/2010 dated September 03. 2010, Circular No. MCX/COMP/302/2013 dated September 5, 2013, MCX/COMP/102/2014 dated March 26, 2014, MCX/MEM/293/2014 dated September 16, 2014, MCX/MEM/403/2014 dated December 22, 2014 and MCX/COMP/033/2015 dated February 6, 2015
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 Circular No. MCX/COMP/302/2013 dated September 5, 2013 and Circular No. MCX/COMP/488/2009 dated November 27, 2009, for details.
Members/ intermediaries are required to report below mentioned transactions to FIU-IND:
  • Cash Transactions
  • Suspicious Transactions
You may please refer Circular No. MCX/COMP/033/2015 dated February 6, 2015, Circular No. MCX/COMP/302/2013 dated September 5, 2013 and Circular No. MCX/COMP/488/2009 dated November 27, 2009, for details.
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.
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.
  • Customer acceptance
  • Customer identification
  • Monitoring of Transactions
  • Tracking and Reporting suspicious transactions
All cash transaction of the value of RS.10 lakhs or its equivalent in foreign currency or all series of transactions integrally connected to each other which have been valued below Rs. 10 lakhs or its equivalent in foreign currency, where such series of transactions have place within a month.
You may please refer to the Circular No. MCX/COMP/102/2014 dated March 26, 2014, MCX/MEM/293/2014 dated September 16, 2014
You may please refer to the Circular No. MCX/COMP/302/2013 dated September 5, 2013, MCX/COMP/102/2014 dated March 26, 2014 and MCX/MEM/403/2014 dated December 22, 2014

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Yes, for the same you may please refer Circular No. MCX/COMP/349/2013 dated October 15, 2013, Circular no. MCX/012/2006 dated January 10, 2006, Circular No. MCX/003/2006 dated January 03, 2006 and Circular No. MCX/007/2005 dated January 03, 2005.
Yes, you may refer Circular no. MCX/COMP/085/2010 dated March 18, 2010, Circular No. MCX/COMP/374/2009 dated September 16, 2009 and Circular No. MCX/058/2004 dated July 9, 2004.

Office Management

Yes, you may please refer Circular no. MCX/MEM/044/2012 dated February 2, 2012, Circular no. MCX/MEM/282/2010 dated August 7, 2010 and Circular No. MCX/295/2006 dated July 28, 2006. You may also note that non display of notice board / information board including details of registration details as prescribed by the Exchange would attract penalty as per the Circular no. MCX/COMP/113/2010 dated April 5, 2010.
Registration certificate issued by the Exchange is required to be displayed at the member's head office and branches/Authorized Person’s offices.
Yes, you may please refer Circular no. MCX/CTCL/043/2007 dated February 2, 2007, Circular No. MCX/CTCL/042/2007 dated January 31, 2007 and Circular No. MCX/358/2006 dated September 02, 2006.
No. You may please refer Circular no. MCX/T&S/402/2012 dated November 30, 2012
Yes, you may please refer circular no. MCX/CTCL/191/2013 dated May 23, 2013 and MCX/CTCL/116/2013 dated March 22, 2013. Members of the Exchange having Exchange approved ATF are required to undertake system audit of their ATF software on yearly basis through Exchange empanelled system auditors and the audit report in this regard should be submitted by 30th June every year.
You may please refer Circular No. MCX/T&S/314/2011 dated September 14, 2011 and Circular no. MCX/347/2006 dated August 29, 2006.

Fund Management

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 Circular No. MCX/COMP/352/2014 dated October 28, 2014 and Circular No. MCX/Comp/304/2007 dated September 01, 2007.
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
You may please refer Circular No. MCX/COMP/082/2014 dated March 15, 2014.
No, refer Business Rule 27 (q) and Circular MCX/012/2006 dated January 10, 2006
Yes, please refer Circular No. MCX/C&S/383/2014 dated December 1, 2014, Circular No. MCX/C&S/203/2014 dated May 28, 2014, Circular No. MCX/C&S/186/2014 dated May 15, 2014, Circular No. MCX/C&S/172/2014 dated May 2, 2014, Circular No. MCX/C&S/117/2014 dated April 1, 2014, Circular No. MCX/C&S/109/2014 dated March 29, 2014 and Circular No. MCX/C&S/214/2011 dated June 9, 2011.

Further, you may refer the following link on Exchange website:
http://www.mcxindia.com/marketoperation/clearingsettlement/faqs_mcr.htm
Clients’ credit balances should be settled as per Circular No. MCX/COMP/052/2012 dated February 14, 2012 MCX/COMP/352/2014 dated October 28, 2014.
No, refer Circular No. MCX/COMP/469/2011 dated December 22, 2011 and Circular No. MCX/012/2006 dated January 10, 2006.
You may please refer the Circular No. MCX/COMP/082/2014 dated March 15, 2014 and MCX/COMP/033/2015 dated February 6, 2015 .

You may refer to Circular No. MCX/C&S/109/2014 dated March 29, 2014, MCX/C&S/117/2014 dated April 01, 2014, MCX/C&S/172/2014 dated May 02, 2014 and MCX/C&S/383/2014 dated December 01, 2014.

Miscellaneous

Yes, you may please refer to Circular No. MCX/207/2006 dated May 19, 2006.
The link for references available at our website www.mcxindia.com under the link Membership> Existing Members> Annual Returns
No, you may please refer Circular No. MCX/T&S/074/2011 dated March 12, 2011, Circular No. MCX/COMP/113/2010 dated April 05, 2010, Circular No. MCX/COMP/317/2008 dated October 07, 2008 and Circular No. MCX/COMP/088/2008 dated March 04, 2008.
Yes, you may please refer to Circular No. MCX/357/2006 dated September 02, 2006, Circular No. MCX/T&S/094/2008 dated March 07, 2008 Circular No. MCX/COMP/250/2009 dated June 09, 2009, Circular No. MCX/COMP/401/2009 dated October 01, 2009, Circular No. MCX/COMP/113/2010 dated April 05, 2010, MCX/T&S/355/2011 dated October 10, 2011, MCX/COMP/052/2012 dated February 14, 2012, MCX/T&S/093/2013 dated March 07, 2013, MCX/COMP/349/2013 dated October 15, 2013, MCX/C&S/109/2014 dated March 29, 2014 and MCX/COMP/352/2014 dated October 28, 2014 along with other penalty circulars issued by relevant departments from time to time.
No, you may please refer Circular No. MCX/COMP/349/2013 dated October 15, 2013, Circular No. MCX/COMP/332/2013 dated October 4, 2013, Circular No. MCX/COMP/259/2013 dated July 26, 2013, Circular No. MCX/COMP/261/2010 dated July 26, 2010, MCX/COMP/399/2008 dated December 18, 2008, MCX/551/2006 dated December 13, 2006 and MCX/561/2006 dated December 15, 2006 and MCX/COMP/352/2014 dated October 28, 2014.
Yes, refer to the following link available at our website www.mcxindia.com under Membership>Compliances>Status Report.
Yes, you may please refer to Circular No. MCX/COMP/085/2010 dated March 18 2010, MCX/COMP/374/2009 dated September 16, 2009 and MCX/058/2004 dated July 09, 2004
Following are the circulars regarding Inactive Clients:
You may please refer Business Rule 10 and Circular No. MCX/FIN/090/2015 dated March 25, 2015.
All the members are required to obtain MCX Certified Commodity Professional (MCCP) certification and to ensure that atleast one person in their office has passed the said examination and live certificate is available with the member at all times.

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