Modification of Client Codes post Execution of Trades on National and Regional Commodity Derivatives Exchanges– Clarification

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....(i) Classification of genuine errors: The following shall be classified as genuine errors for the purpose of client code modification:- a. Error due to communication and / or punching or typing such that the original client code / name and the modified client code / name are similar to each other. b. Modification within relatives ('Relative' for this purpose would mean as defined under Companies Act, 2013) (ii) Error Account: a. Shifting of trades to the 'Error account' of broker would not be treated as modification of client code, provided that trades in 'Error account' are subsequently liquidated in the market and not shifted to some other code. b. Further, broker shall disclose the codes of accounts which are classified as 'Error ac....

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....cation within relatives ('Relative' for this purpose would mean as defined under Companies Act, 2013) 3. Error Account: a. Shifting of trades to the 'Error account' of broker would not be treated as modification of client code, provided that trades in 'Error account' are subsequently liquidated in the market and not shifted to some other code. b. Further, broker shall disclose the codes of accounts which are classified as 'Error accounts' to the Exchanges. Each broker should have a well-documented error policy approved by the management of the broker. Exchanges shall periodically review the trades flowing to the error accounts of the brokers. 4. If Exchange wishes to allow trading members to modify client codes of non-institutional tr....