compliance guide - MCX

Compliance GuideThe Member is hereby informed about the following requirements with respect to KYC Forms:‣ Client registration documents are to be executed with any new client before commencingtransactions with the client.‣ The KYC should be as per format prescribed by the Exchange / FMC. KYC should becompletely filled and signed by client (For example: details such as net worth, details ofintroducer etc.)1. Photograph should be pasted on the KYC forms2. Photograph should be cross signed‣ It must be ensured that all the documents as mentioned above should be attached alongwith KYC forms and should be self-attested by the Clients.‣ All the documents must be verified against the original by the Member.‣ Trades must not be executed before an account is opened.‣ Provide copy of set of all KYC documents to client. Electronic Contract note declaration is tobe obtained by the Member from the clients who opts to receive the ContractNote in Electronic Form in place of physical Contract Note. Further, theMember may note that this declaration will remain valid till it is revoked bythe client as per the circular no. MCX/COMP/087/2014 dated March 19, 2014 issued in thisregard. Further list of valid documents with respect to above is mentioned in the CircularNo. MCX/COMP/469/2011 dated December 22, 2011,and MCX/COMP/286/2013 datedAugust 28, 20133.3 Risk Disclosure Document (RDD) and Investors’ Rights and Obligations (IR&O) (ReferBye Laws 14.1.1, 14.1.2):The Exchange has specified the format of RDD in Business Rule 27 (c), Annexure-XIII, andsubsequently modified by the Exchange vide Circular No. MCX/COMP/469/2011 datedDecember 22, 2011 through which the Clients are made aware of the risks associatedwith business in trading in contracts listed on the Exchange including any limitations on thatliability and the capacity in the Member’s acts and the Client’s liability thereon. Further the IR&Ohas been introduced through Appendix 3 of the aforementioned circular which is required to beread in conjunction with the RDD.Further, vide Circular no. MCX/COMP/116/2014 dated April 01, 2014 the format of RDD has beenmodified which is applicable to all the clients with effect from May 01, 2014. The Members arerequired to obtain the said set of revised documents from all their existing clients’ latest byDecember 31, 2014 and further maintain sufficient proof of delivery of such document issued.The Member shall furnish a copy of these documents to all his clients and further ensure thatthe same is issued in the format as prescribed by the Exchange.- 22 -