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Customer protection |
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Ref.No.:NMCE/2009-10/0045 12TH October, 2009.
To,
The Members,
In pursuance to the directions of the Forward Markets Commission (FMC) vide its letter No.FMC/Comp/VI/2009/04/06/114/57801 dated 16th September 2009 and in terms of the Bye-Laws, Rules and Regulations of the Exchange the members are notified as under:
a) The Members shall execute the trade of clients only after keeping evidence of the client placing such order; it could be, inter alia, in the form of sound recording
b) The members shall keep evidence of having dispatched the contract note to the clients
c) The members shall keep evidence of making the payment to the client on account of Mark to Market gains made by the clients
d) The Know Your Client (KYC) documents required to be signed by clients shall not contain inequitable, onerous or unreasonable conditions imposed on clients such as:-
(i) Waiver to the Member from sending contract notes;
(ii) Retaining the M T M (Mark to Market) gains by the Member with himself; and
(iii) Any condition which gives the member the freedom to trade on behalf of the client without the explicit and specific order issued by the client
e) No Member shall execute trades of clients before completing KYC formalities.
Non-Compliance of the aforesaid directions of FMC will be viewed seriously.
It comes into force with immediate effect.
Members are requested to take note of the above.
For and on behalf of
National Multi-Commodity Exchange of India Limited.
(Dinesh Shukla)
VP (Market Watch & Surveillance) |
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