ARG COMPLIANCE MANUAL - Rathi Online

from this account to the Settlement account to meet his pay in or margin obligations.c) Business/Own/Expense account(i) As per Circular no. MCX/012/2006 dated January 10, 2006; allMembers are required to ensure that he has maintained separatebank account for their own account and clients account.(ii) As per Business Rule 37 (q), Exchange Member shall at all timeskeep the money of the Client in the Member Clients accountmaintained with the Clearing bank. He shall not use this money forhis own transactions or for transactions of such other client or forany purpose other than margin and pay in relating to transactionsentered into by such client paying the margin.2. REGISTRATION OF CLIENTS2.1 Know Your Client (KYC) Forms / Client Registration FormsThe Members of the Commodity Exchanges have to complete all the detailspertaining to the clients in Know Your Client Forms and obtain all necessarydocuments in support to information provided by the clients.2.1.1 Format of KYC Forma) When establishing a relationship with a new Client, Members ofthe Exchange must take reasonable steps to assess the background,genuineness, beneficial identity, financial soundness of suchperson, and his trading objectives by registering the client withthem in the format prescribed as CLIENT REGISTRATIONFORM as per Business Rule 27(b), Annexure XII. The same hasbeen subsequently modified by the Exchange and a revised formatis given vide Circulars no. MCX/088/2006 dated March 01, 2006& MCX/555/2006 dated December 15, 2006.b) The KYC form should include all the details as prescribed by theExchange from time to time.c) Member are advised to evolve and put in place an appropriatemechanism to assess financial strength, performance tracking,trading pattern vis-à-vis their clients position and dealings inrespect of all clients2.1.2 Documents RequiredFollowing documents required from Clients along with KYC forms as perCirculars no. MCX/088/2006 dated March 01, 2006 & MCX/555/2006dated December 15, 2006.a) For individuals:Address proof, identity proof, proof of bank account number, copyof latest Income Tax Return, PAN proofb) For Corporate clients:Address proof, PAN proof, proof of bank account number, copy oflatest Annual Report, proof of date of incorporation, copy ofMemorandum of Association & Articles of Association.198