The Member shall, when establishing relationship with a new client, take reasonable steps to assess the background, genuineness, financial soundness and investment objectives of such client.

The Member shall obtain client registration forms from all constituents

The Members shall enter into agreement with each of their constituents before accepting or placing orders on their behalf

Members shall issue signed contract notes in the prescribed format to their constituents for trades executed within 24 hours from the close of trading hours when the trade is executed.

Members shall keep copies/duplicates of contract notes issued.

Contract notes shall be numbered with unique running serial number.

Members shall buy/sell derivatives contracts on behalf of the constituent only on receipt of a margin on the prices of derivatives contracts proposed to be purchased/sold.

The minimum margin percentage will be prescribed by the Exchange. Members may collect higher margins from constituents as deemed fit.

Members shall obtain a written undertaking from the constituents that they shall, when called upon to do so, provide a margin deposit and/or additional margin money as required in respect of business done for the constituents by the member.

Members shall at all times keep moneys of constituents in a separate bank account and their own money in a separate account. No payment for transaction in which the member has taken a position, shall be made from the clients’ account.

Members shall keep such books of accounts to distinguish moneys received/paid on account of each of their clients and moneys received/paid on their own account.

Members shall make full payment of funds to their constituents within 24 hours of receipt of relevant payout from the Exchange.

Members shall not become constituents of another member or allow another member to be their constituent.

Member shall not deal on or access the Trading System of the Exchange through another member or on behalf of another member without prior approval of the Exchange.

Member shall not carry out business or execute any deals for any member, who has been suspended, expelled or declared defaulter by the Exchange.

No money shall be paid into the client’s account other than money held or received on account of clients; or money which may be required for the purpose of opening or maintaining the account.

No money shall be drawn from client’s account other than money required for payment on behalf of clients for or towards payment of a debt due to member from clients.

Trade only through registered members of the Exchange.

Enter into a Client-Trading Member Agreement with the member.

MCo-operate with the member in filling up the Know Your Client (KYC) form

Insist on getting a Client-ID.

Insist on reading and signing the ‘Risk Disclosure Agreement’ before entering into any transactions.

Assess the risk-return profile of the investment as well as the liquidity and safety aspects before making and/or acting upon any investment decision.

Make investments based on sound reasoning, after taking into account all available information.

Understand thoroughly the Delivery and Settlement Procedure as well as taxation and other relevant laws.

Obtain receipt from members for collaterals deposited with them towards margins.

State clearly who will be placing orders on your behalf. Give precise and clear instructions while placing, modifying or canceling orders.

Cross check the genuineness of trades carried out at the exchange through the trade verification facility available on website.

Pay all applicable margins on futures position to the member. Also, collect/ pay mark-to-market margins from/to the member which are required to be settled on a daily basis.

Pay required margins on time and only by cheque and ask for receipt thereof from the member. Issue cheques/drafts in your member’s name and receive cheques/drafts in your name.

Do not exceed the position limits prescribed periodically by the exchange or Forward Markets Commission.

Do not deal with unregistered intermediaries even if their charges are lower and/or margins are lower.

Do not start trading before reading and understanding the Risk Disclosure Agreement and entering into the prescribed agreement with the Member.

Do not get misled by rumors, luring advertisements, hot tips and promises of unrealistic returns.

Do not sign blank Delivery Instruction Slips (DIS), since the same can be misused.