compliance guide - MCX

Compliance Guide2.3 Trading Terminal to Authorized PersonIf any trading terminal is provided by the Member to the Authorized Person, the place wheresuch trading terminal is located will be treated as a branch office of the MemberIn addition to display of the Information board at the branch offices, members are also requiredto display information regarding particulars of the Authorized Person in charge of that branch,terms and conditions of his appointment, time lines for dealing through Authorized person, etc.,as may be specified by the Exchange,2.4 The Members are informed that:The system of sub-brokers by whatever name called is discontinued w.e.f. from January 31,2011. Members are allowed to provide access to their clients either through themselves orthrough “Authorised Persons” from the said date.‣ The Authorised Persons appointed by the Member must be registered with the Exchange.‣ The Authorised Person(s) shall be assigned a Unique Code by the Exchange.‣ The Member should enter into an agreement prescribed by the Exchange with each of theAuthorised Persons after receipt of communication of acceptance of such Authorized Personby the Exchange.‣ The Member should conduct periodic inspection of the branches assigned to the AuthorisedPerson(s) and records of the operations carried out by them, as prescribed by the Exchange.‣ The audit of the Authorised Person(s) has been conducted based on the guidelinesprescribed by the Exchange and FMC.2.5 Member Authorised Person Agreement:The Member shall comply with the following requirements:‣ The Agreement should be printed on a non-judicial stamp paper of appropriate valueand is dated.‣ The Agreement should be filled completely and properly.‣ Date of Agreement should be after date of stamping and within six months of stamping.‣ The Agreement should be signed by Authorised person, Member as well as witnesses.‣ All the pages of the Agreement should be signed.‣ Agreement should contain clauses prescribed by Exchange / FMC from time to time.Further agreement should not contain any clause related to adjustment ofdeposit/brokerage/commission/salary of the Authorised person against the debitbalances of the clients introduced by the Authorised Person.- 12 -