TaxTMI 
TaxTMI 
Code of Conduct for Bullion Exchange or Bullion Clearing Corporation
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....e Acts, committed by any of its members or customers. (g) take a proactive and responsible attitude towards safeguarding the interests of customers, integrity of bullion exchange's or bullion clearing corporation's systems, the bullion market and the securities market. Code of Conduct for Bullion Depository A bullion depository shall: (a) always abide by the provisions of the Act, the Securities Contracts (Regulation) Act, 1956, the Depositories Act,1996, or any rules, notifications, regulations, circulars, guidelines or directions issued under these Acts. (b) adopt appropriate due diligence measures. (c) take effective measures to ensure implementation of proper risk management framework and good governance practices. (d) take appropriate measures towards investor protection and education of investors. (e) treat all its applicants and members in a fair and transparent manner. (f) promptly inform the Authority of any violations of the provisions of Act, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996, or any rules, notifications, regulations, circulars, guidelines or directions ....
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....o perform their tasks effectively, (ii) regulatory and control functions operate independently and have appropriate direct access to the governing board of the bullion exchange and bullion clearing corporation and senior management, and (iii) control functions are proactively involved in all relevant decisions and activities. (i) Provide for three lines of defense construct where: (i) the first line of defense incorporates business units and support functions as it has the responsibility to own and manage risks associated with day-to-day operational activities, (ii) the second line of defense consists of various oversight functions i.e., regulatory, risk management, compliance teams, and (iii) the third line of defense comprises the internal audit function. (j) ensure that the roles and responsibilities of management in relation to three lines of defense are clearly specified and understood and that all employees are responsible for the regulatory, risk management and compliance outcomes. (k) ensure a culture of effective communication and challenge (i.e., encourage alternate views or questions from individuals....
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....of conduct for directors, committee members and key management personnel A. Applicable to directors, committee members and key management personnel of bullion exchange and bullion clearing corporation: 1. General Responsibility Every director, committee member and key management personnel of the bullion exchange or bullion clearing corporation shall- (a) analyse and administer the bullion exchange's and bullion clearing corporation's issues with professional competence, fairness, impartiality, efficiency and effectiveness; (b) unless otherwise required by law, maintain confidentiality and not divulge or disclose any information obtained in the discharge of their duties and ensure no such information is used for personal gains; (c) maintain the highest standards of personal integrity, truthfulness, honesty and fortitude in discharge of their duties in order to inspire public confidence and not engage in acts discreditable to their responsibilities; (d) perform their duties in an independent and objective manner and avoid activities that may impair, or may appear to impair, their independence or objectivity or official duties. ....
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.... committee member and key management personnel shall disclose to the governing board of bullion exchange or bullion clearing corporation, upon assuming office and during their tenure in office, whenever the following arises: - (a) any fiduciary relationship of self and family members and directorship or partnership of self and family members in any trading member or clearing member (b) shareholding, in cases where the shareholding of the director or key management personnel, directly or through her family exceeds 5 per cent. in any listed company or in other entities related to the bullion markets or securities markets; (c) any other business interests. 4. Access to Information (a) There shall be specified channels through which information shall move and further there shall be audit trail of the same. Any retrieval of confidential documents or information shall be properly recorded. (b) All such information, especially which is non-public and price sensitive, shall be kept confidential and not be used for any personal consideration or gain. (c) Any information relating to the business or operations of the bullion exchange or....
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....a) The directors and committee members shall not interfere in the day-to-day functioning of the bullion exchange or bullion clearing corporation and shall limit their role to decision making on policy issues and to issues as the governing board of bullion exchange and bullion clearing corporation may decide. (b) The directors and committee members shall abstain from influencing the employees of the bullion exchange and bullion clearing corporation in conducting their day-to- day activities. (c) The directors and committee members shall not be directly involved in the function of appointment and promotion of employees unless specifically so decided by the governing board of bullion exchange and bullion clearing corporation. 3. Avoidance of Conflict of Interest (a) No director or committee member of the bullion exchange or bullion clearing corporation shall participate in any decision making or adjudication in respect of any person or matter in which she is in any way, directly or indirectly, concerned or interested. (b) Conflict of interest in a matter, if any, shall be decided by the governing board of the bullion exchange and bullion clearing....
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....y are placed before the governing board with comments/report of managing director. (f) Public interest directors shall put in place an evaluation mechanism to assess the performance of the managing director on a continuing basis in line with evaluation guidelines for public interest directors. (g) Public interest directors to ensure that appointments of managing director be held within specified timelines. The identification of key management personnel be closely scrutinized as per the laid down procedure and exceptions should be brought to the notice of the Authority. (h) Public interest directors should take proactive part in the deliberations of different committees and steer their functioning. (i) Ensure adequacy of resource allocations (both financial & human) towards regulatory compliances to be ensured. (j) Public interest directors as members of various committees (including statutory committees) shall provide a report to other Public interest directors on the working of their committees. (k) Public interest directors shall submit a report on the outcome of such meetings to the Authority and to the governing board of the....
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.... viii. Customer protection and services. c. Vertical 3: Other functions including business development i. Sales; ii. Marketing; iii. Product development; iv. Finance. Part-D [See Regulation 26 and 27] A. Procedure for appointment 1. All directors while seeking approval shall submit to the bullion exchange and bullion clearing corporation the following details: - a) Name b) Address c) Educational qualification d) Details of employment/ Occupation, past and present e) Details of other directorships f) DIN g) Declaration regarding the fulfillment of requirements specified in these regulations. h) Declaration confirming compliance in respect of non-association with trading members or clearing members. i) Details of regulatory action taken against by any statutory authority. j) Details of activities that may, in the opinion of the director, lead to her disqualification. k) Association with trading members/clearing members. l) Disclosure of the names of her dependents associated with the bullion market or securiti....
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....ensure that public interest directors are selected from diverse fields of work. While deciding to propose a particular person as a public interest director, the bullion exchange and clearing corporation shall also take into account the following factors: a) Qualifications as specified in sub-regulation (14) of regulation 25. b) At least one person shall be inducted having experience and background in finance/ accounts who may preferably be inducted in the audit committee. c) Persons currently holding positions of trust and responsibility in reputed organizations or person who have retired from such positions. d) Persons who are likely to have interested positions in commercial contracts and financial affairs of bullion exchange, may preferably be excluded. 3. Public interest directors shall peruse the relevant laws, code of conduct, etc. and submit an undertaking to the bullion exchange or bullion clearing corporation that they are aware of their roles, responsibilities and obligations. 4. In case of reappointment of the public interest director, the bullion exchange or bullion clearing corporation shall apply to the Authority f....