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Ref.No.:NMCE/2009-10/0042 6th October, 2009
To,
The Members,
In continuation of our circular under Ref.No.:NMCE/2009-10/0017 dated 23rd June, 2009 and in terms of the Bye-Laws, Rules and Regulations of the Exchange, the Members of the Exchange are notified as under.
(i) Members should not accept cash from the client whether against obligations or as margin money for trading in commodity derivatives.
(ii) All payments shall be received/ made by the members from / to the clients strictly by account payee crossed cheques/ demand draft or by way of direct credit into the bank account through EFT, or any other mode allowed by RBI. The members shall accept the cheques drawn only by the clients and also issue cheques in favour of the clients only, for their transactions. However, in exceptional circumstances the member may receive the amount in cash to the extent not in violation of the provisions of Income Tax Act, i.e Rs.20,000* as may be in force from time to time.
Non-Compliance charges for violation of the above shall be @ 0.5% of the cash transacted. In case of repeated instances, the Exchange reserves the right to take any further action including deactivation of trading terminals / suspension etc. as deemed fit under its Bye-Laws, Rules and Regulations.
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)
* The amount may change as per the provision of Income Tax Act from time to time. |
