compliance guide - MCX

Compliance Guide11. Inactive ClientsA client is considered as Inactive Client if he / she have not executed any trade during the last 6months.As per Business Rules 27 (u), Circular MCX/COMP/513/2009 dated December 15, 2009 andCircular No. MCX/COMP/298/2010 dated August 21, 2010, members are required to follow thebelow mentioned guidelines with respect to inactive clients:‣ The Members should keep close watch on such accounts.‣ The Members should accept trades in these accounts only on completion of belowmentioned compliances:An undertaking having specific written request from the clients to re-open their inactive tradingaccountIf there is no material change in KYC information (such as address, bank account, PAN no. etc.)provided by the client at the time of opening their account with the member then in such casesinstead of taking KYC formalities again, Member may take undertaking from the clientmentioning:‣ He (the client) has already completed KYC formalities at the time of original registration withthe memberThere is no material change in respect of the information contained in the said KYC.‣ After completion of above mentioned compliances, the Member may execute the orders onbehalf of such clients in the same client code i.e. the client code issued earlier by themember to the concerned client.‣ If trade takes place in such inactive account without following the above procedure, thesame would be treated as members‘ proprietary trade for all practical purposes and also asmisuse of client‘s UCC- 33 -