ARG COMPLIANCE MANUAL - Rathi Online

a) As per Bye-law 8.6.5, the member may close out an open position of aclient when the call for further margin or any other payment due is notcomplied with by the client;b) As per Bye-law 8.6.10 Members shall furnish their clients in writing suchreports and at such intervals for margin collection and its utilization asmay be specified by the Relevant Authority.5. CONTRACT NOTESThe Contract notes is a document through which a contractual obligation is establishedbetween a Member of the Exchange and its client. This is the prime document on thebasis of which all the dispute between the Member and his clients are settled.Every Member has to issue contract notes to their clients for the commodities traded byhim on behalf of them in compliance of, Rules, Bye-laws, Business Rule 27(p), andCirculars nos. MCX/012/2006 dated January 10, 2006 &. MCX/409/2005 datedDecember 06, 2005 of the Exchange.5.1 Requirements on Issue of Contract Notes to ClientsFollowing are the some of the requirements from Member of the Exchange tofollow on issue of Contract notes to their clients:a) Member shall issue contract note for trades executed in prescribed formatwith all the relevant details duly filled in within 48 hours from the close oftrading hours when the trade is executed.b) Member may also issue digitally signed contract note / confirmation slip atthe request of his clients subject to the compliance of all the provision ofIT Act. 2000.c) The Member should obtain a written consent from their clients for issue ofdigital contract notes to their clients.d) The Member shall maintain and preserve proper record for dispatch ofcontract notes to the clients if the same are dispatched through post,courier etce) Every Member shall maintain duplicate of the contract notes issued to theclients for a period of three years.f) The Members are required to issue contract notes to clients, which areserially numbered. The cont ract notes issued to the clients shall beCompliance Guidenumbered with unique running serial number commencing from onewhich shall be reset only at the beginning of every financial year.Financial year for the purpose of resetting the serial number of contractnote is April to March.g) Members are required to charge brokerage separately and the same isindicated separately from the price in the contract note.h) The Contract notes are required to sign either by the Member himself orhis authorized signatory.201