compliance guide - MCX

Compliance GuideThe Member will display at each such branch office, additional information such as particulars ofAuthorised Person, in - charge of that branch, terms and conditions of his appointment, timelines for dealing through Authorised Person etc. as may be specified by the Exchange. Further,as per Circular No. MCX/ 295/2006 dated July 26, 2006; information/notice board is alsorequired to be displayed at the office of Authorised Person. Members are required to notifychanges, if any, in the Authorized Person to all registered clients of that branch at least thirtydays before the change.In case of any change in partners/ directors, change in shareholding/sharing pattern of theAuthorized Person, Members are required to intimate the Exchange of the details of theproposed change at least 30 days in advance in the format prescribed by the Exchange.In case of any change in status and /or constitution of the Authorized Person, Members arerequired to intimate the Exchange of the details of proposed change and submit all thedocuments of the proposed change at least 30 days in advance in the format prescribed by theExchange. Members are required to conduct periodic inspection of branches assigned toAuthorizedPersons and records of the operations carried out by them. The copies of such inspectionreports will be retained by the Member as a record for inspection of the Exchange and/or FMC,if required. It is the responsibility of the Member to audit the records of its AuthorizedPerson to ensure that they comply with the Rules, Bye laws, Business Rules and Circulars of theExchange issued from time to time.The clients dealing through an Authorised Person are required to be registered with theMember only. The funds, monies, commodities, warehouse receipts etc. of the clients will besettled directly between the Member and client. No fund/commodities of clients will bedeposited / transferred / credited into any account of Authorized Person. All documents likecontract note, statement of funds and commodities would be issued to client by the Member.Authorized Person will only provide administrative assistance in procurement of documentsand settlement, but are not allowed to issue any document to client in its own name.On noticing irregularities, if any, in the operations of Authorized Person, the Member willforthwith seek withdrawal of approval, withhold all moneys due to Authorized Person tillresolution of client grievances, alert clients in the location where Authorized Person operates,file a complaint with the police, and take all measures required to protect the interest of clientsand market. Members are required to ensure that no orders are executed by AuthorizedPerson before all documents as prescribed by the Exchange/Commission as the case may be,including obtaining of all KYC related documents for each client registered through suchAuthorised Person. Uploading of details pertaining to the Unique Client Code (UCC) is theresponsibility of the Member and the Authorized Person cannot create/allot such UCC to anyclient. All documents as mentioned above should be made available with the Member for theaudit / inspection or as and when required by Exchange or the Commission.- 11 -