Circular No :- NMCE/2011-12/0090 Date: - 31-Dec-2011
To, The Members, In partial modification of the circular issued by the Exchange under circular No: NMCE/2011-12/0061 dated 5th October, 2011 and in pursuance of the directives received from the Forward Markets Commission vide its letter No.6/12/2010-MKT-I FMC/2/2011/C/32 dated 26th December, 2011 and in terms of the Bye-laws, Rules and Regulations of the Exchange; the provisions regarding client code modification have been revised as under:
1. The Client code modification facility is allowed only for carrying out correction of genuine punching error(s) in the client code.
2. The facility of client code modifications will be extended only during the period from 5.00 p.m. to 5.15 p.m. in respect of contracts traded upto 5.00 p.m. on all trading days except Saturdays.
3. For the contracts traded till 10.00 p.m. on all trading days except Saturdays, the facility of client code modifications will be allowed only during the period from 10.00 p.m. to 10.15 p.m.
4. On all Saturdays the facility of client code modification will be allowed from 2.00 p.m. to 2.15 p.m. In no circumstances, changes in the client codes will be permitted on the next trading day or thereafter.
5. Intra-day modifications of client codes other than as above are not allowed.
6. Proprietary trades shall not be allowed to be modified as client trade and vice-versa. Any violation of this provision shall lead to disciplinary action against the Members by the Exchange.
7. In order to ensure that client codes are entered with alertness and care, and this facility is not misused, a penalty on the client code changes shall be imposed as per the following structure, with effect from 01.01.2012:
|
‘a’ as % of ‘b’ |
Penalty as % of ‘a’ |
|
< 5% |
1% (subject to a minimum of Rs 5,000/-) |
|
> 5% |
2% (subject to a minimum of Rs 5,000/-) |
Where, a = Value (turnover) of trades in respect of which client codes have been modified by a trading member during a day. b = Value (turnover) of trades of the trading member during that day.
8. The criteria for determining genuineness of Client Code Modification are as follows:
a) The difference in the Original Client Code and the Modified Client Code is such that most of the alphabets and numeric values are generally in the same sequence and are mostly identical. Only then, the same may be construed as a genuine punching error.
Example: Client code FA 1234 wrongly entered as MN5678 would be construed as intentionally committed whereas FA1234 entered as AF1234 or FA1243 may be a genuine punching error
b) Client codes modified by the same Member for the same client only once in a fortnight may be construed as genuine, subject to the above requirement.
c) The value of Client codes modification by the same Member is insignificant in comparison to the total value of such trades executed on the Exchange.
9. Members are required to inform the Exchange on a daily basis in case of Client code modifications due to genuine punching error(s). The Exchange will decide on the genuineness or otherwise of the client code modifications based on the aforesaid criteria. It is clarified that the conditions stipulated under a, b, and c of Para 8 above are not mutually exclusive and shall be read together to determine the genuineness of the Client Code Modification (CCM) by the members.
10. The Exchange shall take disciplinary action against the members who resort to client code modifications without genuine reason.
Members are requested to take note of the above.
For and on behalf of
National Multi-Commodity Exchange of India Limited
Dinesh Shukla
Vice President –MW & S
