compliance guide - MCX

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 -