ARG COMPLIANCE MANUAL - Rathi Online

) All monies received from the clients and all the payment made to theclients should be routed through the clients‟ bank accounts. A Membermay open a single client account or multiple client accounts. WheneverMember trades as a principal (Pro trade), he cannot use the client‟saccount for payment.c) Every Member who holds or receives money on account of a client isrequired to forthwith deposit such money in the designated clientsaccount.d) No money should be withdrawn from clients account other then moneyrequired for payment towards payments of a debt which is due to theMember from clients or money drawn on clients‟ authority or money inrespect of which there is a liability of clients to the Member, provided thatthe money so drawn should not exceed the total of the money so held forthe time being for each such client.e) Member has not used clients‟ money for making payment for officeexpenses such as salary, telephone bills, TDS payments, purchase of officeequipment etc. It should be noted that amounts withdrawn from clientbank to own bank on account of brokerage, should be an amount due tothe Member towards brokerage receivable from clients on transactionsentered into with clients.12.2 Bank BookMember should have segregation of clients funds & own funds and should notuse clients‟ fund for the purpose other than specified. Member should not misutilizedclients‟ funds12.3 Issue of Statement of accounts/funds to ClientsDisputes can arise between the Member and their clients pertaining to paymentsdue to /from the clients. This may be due to non-submission of statement ofaccounts / funds by the Member to the clients on a regular basis.As per Circular no. MCX/357/2006 dated September 02, 2006; all Members arerequired to send a quarterly statement of accounts/funds to all the clients.13. MISCELLANEOUS13.1 Appointment of Compliance Officera) Every Member shall appoint a Compliance Officer and keep the Exchangeinformed of the appointment of a Compliance Officer as per Circular no.MCX/207/2006 dated May 19, 2006.b) It is necessary that the Exchange be also informed for any change in thecompliance officer.13.2 Investor GrievancesMember should be prompt in redressing investor grievances. Member is requiredto ensure that Complaint of any client is not pending for more than thirty days asper Circular no. MCX/012/2006 dated January 12, 2006.206