compliance guide - MCX

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Compliance GuideCHAPTER IIBooks of Accounts and Other Records1 Maintenance of Books of Accounts/Documents/ RecordsAll Members of the Exchange as well as other market intermediaries are required to maintainsuch Books of Accounts, Registers, Statements and other Records, in physical form orelectronically, as may be specified by the Relevant Authority and will be kept in good order andpreserved at least for such period as may be specified.The Members are required to maintain following Books of Account / Records / Registers /details, as per Bye-law 4.8, 11.5, Business Rules 21 (d), Rules 38 (f), and Circular No.MCX/12/2006 dated January 10, 2006, Circular No. MCX/COMP/195/2008 dated June 06, 2008,Circular No. MCX/COMP/399/2009 dated September 02, 2009, Circular No.MCX/COMP/113/2010 dated April 05, 2010 and Circular No. MCX/COMP/358/2011 datedOctober 11, 2011:‣ Order log / Order Book‣ Trade log‣ Trade File‣ Register of Transactions (Sauda Book)‣ Complaint / grievance register‣ Margin Deposit Book / Register of Margin Deposit‣ General Ledger‣ Exchange wise separate client ledger‣ Clients Bills along with bill summary‣ Commodity register/ledger‣ Records in respect of premium/discount‣ Records in respect of brokerage‣ Journals (JVs)‣ Cash Book‣ Bank Book‣ Bank Pass Book/Bank Statements- 14 -
Compliance Guide‣ Bank Reconciliation statements upto date‣ Daily Margin Statement and Client wise Margin reports‣ Records of transaction of all purchases and sales of commodities / contracts‣ Record of all statement received from the appropriate agencies and record of allcorrespondence with them‣ Copies of all instructions obtained in writing from constituents including participants fororder placement, order modification, order cancellation, trade cancellation.(up to June 05,2008) thereafter evidence of client placing / modifying / cancelling orders in any form,which may include written or electronic or voice recording instrument, since September2009‣ Record of contract-wise Deliveries received / tendered.‣ Duplicate copy of Contract Notes issued to clients‣ Proof of dispatch of contract notes to the clients‣ Proof of receipt / delivery of Contract Notes by clients‣ Evidences of making payment to the clients on account of Mark-To-Market gains by theclients‣ Separate Books for each branch / Authorized Person‣ Any other books of accounts/documents/records as prescribed by the FMC, Exchange and /or any relevant authority from time to timeThe above records/details are required to be preserved for a minimum period of three yearsexcept Trade log which is to be preserved for a minimum period of seven years unless explicitlyprovided for. However, records of transactions are required to be preserved for a minimumperiod of ten years as per PMLA guidelines. Records with respect to orders placed by the clientsare required to be maintained for at least 2 years and in disputed cases till six months from thefinal disposal of the dispute.It may be noted that a Member of the Exchange who is also a member on the NationalCommodity Spot Exchanges, is required to ensure that separate ledgers are maintained forbusiness done by clients on Commodity Futures Exchanges and National Commodity SpotExchanges.In case of Corporate Member, the Member should ensure maintenance of the Statutory Registeras required to be maintained under the Companies Act, 1956:‣ Register of Members‣ Register of Directors- 15 -
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