Regulatory Framework for Commodity Derivatives Brokers

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....ch the FCRA is repealed (September 29, 2015), or till such time as notified by SEBI, whichever is earlier, as if the FCRA had not been repealed. 2. Erstwhile FMC issued various circulars/letters/ directions to exchanges dealing in commodity derivatives for compliance by their members from time to time. Consequent to merger of FMC with SEBI, it is important that regulatory provisions for brokers across equity and commodity derivatives markets be harmonized. Accordingly, regulatory provisions have been divided into three parts as described below. i. Part A contains details of FMC circulars which shall stand repealed and relevant SEBI circulars which shall be applicable. ii. Part B contains details of FMC circulars contents/norms of which....

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....ec 03, 2009 b) CIR/MIRSD/01 /2013 dated Jan 04, 2013 c) CIR/MIRSD/64/2016 dated Jul 12, 2016 For new client accounts. iv. In-Person Verification Part C of FMC/4/2015/C/0015No. FMC/COMPL/IV/KRA-05/11/14 dated Mar 13, 2015 a) Para 3 of MIRSD/Cir- 26 /2011 Dec 23, 2011 b) Point 4 of Part 'Instructions/Check List' of Annexure 3 of Circular CIR/MIRSD/16/2011 dated Aug 22, 2011 v. KRA FMC/4/2015/C/0015 No. FMC/COMPL/IV/KRA-05/11/14 dated Mar 13, 2015 a) MIRSD/Cir-23/2011 dated Dec 2, 2011 b) Para 1 of MIRSD/Cir- 26 /2011 dated Dec 23, 2011 vi. Anti-Money Laundering and Maintenance of Records a) No.7/1/2008- MKT-II dated Oct 30, 2009 b) No.7/1/2008-MKT-II dated Jan 25, 2010 c) No. 7/1/2008-MKT-II dated Aug 25, 2010 d) FM....

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..../DoP/Dep/SE/Cir-22/06 dated Dec 18, 2006 xii. Display of information such as logo, registration number on notice board and contract note and investor grievance redressal mechanism on notice board No circular issued by FMC a) Cir/MIRSD/ 9 /2010 dated Nov 4, 2010 b) CIR/MIRSD/3/2014 dated Aug 28, 2014 xiii. Internal Audit No circular issued by FMC Para 7 to 11 of circular MIRSD/Master Cir-04/2010 dated Mar 17, 2010 xiv. Inspection of brokers a) No. Div./III/I/301/2011-12/Audit dated Dec 23, 2011 b) No. Div./III/I/104/2008-09/Audit dated Feb 02, 2012 c) FMC/1/2014/C/50No.Div.III/I/300/2011-12/Audit dated Apr 23, 2014 d) FMC/1/2014/C/47 No. FMC/1/2014/Audit/C Dated Apr 23, 2014 a) Para 2 to 6 of circular MIRSD/Master Cir-04/2010....

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....ms specified in following circulars shall continue to be in force beyond September 28, 2016. Provisions of these circulars shall be applicable to all commodity derivatives exchanges including regional commodity derivatives exchanges for compliance by their members. Sr No Subject FMC Circular No. and Date i. Account Opening Process a) No.-FMC/4/2011/G/30 Ref. No.: Div. III/I/89/07 dated Dec 16, 2011* b) Div.III/I/89/07 dated Aug 23, 2013 c) F.No.FMC/COMPL/2013/10/30-FSLRC/FSDC dated Mar 28, 2014 d) Div.III/2/89/VOL IV dated Apr 23, 2014 e) No. FMC/COMPL/IV/KRA-05/11/14 dated Feb 26, 2015 ii. Customer Protection such as keeping evidence of client placing order No.FMC/Comp/VI/2009/04/06/114/5787 dated Sep 16, 2009 iii. Nomenc....