ARG COMPLIANCE MANUAL - Rathi Online

(Applicable to Corporate Entity), Copy of Partnership Deed(Applicable to Partnership Firm), Board Resolution authorizing thecompany officials to execute all the deeds/ operations with theExchange on behalf of the company, Letter of Partnership firm(letterhead) authorizing partners to execute all the deeds /operations with the Exchange on behalf of firm.The client, who does not possess PAN, would have to furnishnecessary declaration to that effect in form prescribed by theIncome Tax Department. He will, however, have to furnish otheridentification documents as already provided.2.2 Member-Client Agreement2.2.1 Execution of AgreementAs per Business Rule 27(a), Every Member of the Exchange shall enterinto an agreement with all his clients before accepting / placing orders onbehalf of clients.This agreement has to be on a valid non-judicial stamp paper withadequate value, duly signed by the parties to the agreement, complete inall respect with date of execution of agreement.2.2.2 Format of AgreementMember-Client agreement shall include provisions specified by theExchange as per of Business Rule 27(a), Annexure-XI. Further, it shouldinclude all the provisions as decided and informed by the Exchange fromtime to time.As per Business rule 27(a), Members are free to add more clauses in thespecified agreement; however, no additional clause should in any waydilute the content or purpose of the clause stated in the specifiedagreement by the Exchange. The responsibility of the Member shall not inany way be reduced due to non-execution of agreement with the Clients.2.3 Risk Disclosure Document (RDD)2.3.1 Format of RDDExchange has specified the format of RDD in Business Rule 27 (c),Annexure-XIII, through which Member of the Exchange shall make theClient aware of particulars of Member‟s registration number allocated bythe Exchange, employee primarily responsible for the Clients affairs, theprecise nature of business to be conducted, the risk associated withbusiness in trading in contracts listed in the exchange including anylimitations on that liability and the capacity in the Member of theExchange acts and the Client‟s liability thereon and etc.199