Do's
·
Trade only through Registered Members of the
Exchange. Check from the Exchange website at
http://www.mcxindia.com/SitePages/MembersDetails.aspx to see whether the Member
is registered with the Exchange.
·
Insist on filling up a standard 'Know Your
Client (KYC)' form before you commence trading
·
Insist on getting a Unique Client Code (UCC) and
ensure all your trades are done under the said UCC.
·
Insist on filling up a standard ‘Member-Client
Agreement’.
·
Insist on reading and signing a standard 'Risk
Disclosure Agreement'.
·
Obtain a copy of your KYC, Member-Client
Agreement and/ or other documents executed by you with the Member, from the
Member.
·
Cross check the genuineness of trades carried
out at MCX through the trade verification facility available on MCX website.
The trades can be verified online at
http://www.mcxindia.com/SitePages/TradeVerification.aspx where trade
information is available up to 5 working days from the trade date.
·
Insist on a duly signed Contract Note in
specified format for every executed trade within 24 hours of trade,
highlighting the details of the trade along with your UCC.
·
Ensure that the Contract Note contains all the
relevant information such as Member Registration Number, Order No., Order Date,
Order time, Trade No., Trade rate, Quantity, Arbitration Clause, etc.
·
Obtain receipt for collaterals deposited with
the Member towards margins.
·
Go through the Rules, Bye-laws, Regulations,
Circulars, Directives, Notifications of the Exchange as well as of the
Regulators, Government and other authorities and details of Client-Trading
Member Agreement to know your rights and duties vis-à-vis those of the Member.
·
Ask all relevant questions and clear your doubts
with your Member before transacting.
·
Insist on receiving the bills for every
settlement.
·
Insist on Monthly statements of your ledger
account and report any discrepancies in the statement to your Member within 7
working days. In case of unsatisfactory response report the discrepancy to the
Exchange within 15 working days from the date of cause of action.
·
Scrutinize minutely both the transaction &
holding statements that you receive from your Depository Participant.
·
Keep Delivery Instruction Slips (DIS) book
issued by DPs in safe possession.
·
Ensure that the DIS numbers are preprinted and
your account number (UCC) is mentioned in the DIS book.
·
Freeze your Demat account in case of your
absence for longer duration or in case of not using the account frequently.
·
Pay required margins in time and only by Cheque
and ask for receipt thereof from the Member.
·
Deliver the commodities in case of sale or pay
the money in case of purchase within the time prescribed.
·
Understand and comply with accounting standards
for derivatives.
Don'ts
·
Do not deal with any unregistered
intermediaries.
·
Do not undertake off-market transactions as such
transactions are illegal and fall outside the jurisdiction of the
Exchange.
·
Do not enter into assured returns arrangement
with any Member
·
Do not get carried away by luring
advertisements, rumours, hot tips, explicit/ implicit promise of returns,
etc.
·
Do not make payments in cash/ take any cash
towards margins and settlement to/ from the Member.
·
Do not start trading before reading and
understanding the Risk Disclosure Agreement and entering into the prescribed
agreement with the Member.
·
Do not neglect to set out in writing, orders for
higher value given over phone.
·
Do not accept unsigned/duplicate contract
note/confirmation memo.
·
Do not accept contract note/confirmation memo
signed by any unauthorized person.
·
Do not delay payment/deliveries of commodities
to Member.
·
Do not forget to take note of risks involved in
the investments.
·
Do not sign blank Delivery Instruction Slips
(DIS) while furnishing securities deposits and/or keep them with Depository
Participants (DP) or broker to save time.
Do not pay brokerage in excess of that rates
prescribed by the Exchange 
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