Amendment in ‘Rights and Obligations of Members, Authorized Persons and Clients’ of FMC circular No. FMC/COMPL/IV/KRA-05/11/14 dated February 26, 2015.
Summary
SEBI amends the FMC circular to align electronic contract note procedures for commodity derivatives with those of other securities segments. The amendment replaces Clause 42 of Annexure-3 with Clause 37 of Annexure-4 and rescinds Clause 48 of Annexure-3. Stock exchanges are directed to amend their bye-laws, notify members, and report implementation status.
Text
Provisions of FMC circular No. FMC/COMPL/IV/KRA-05/11/14 dated February 26, 2015 shall be applicable to all commodity derivatives exchanges including regional commodity derivatives exchanges for compliance by their members.
In case, client opts to receive the contract note in electronic form, he shall provide an appropriate email id (created by the client) to the member... The client shall communicate to the member any change in e-mail id through a physical letter. If the client has opted for internet trading, the request for change of email id may be made through the secured access by way of client specific user id and password.
The Appendix A specified in the above clause is the ECN (Electronic Contract Note) Declaration Form in which e-mail id is required to be written in own handwriting of the client.
The Electronic Contract Note (ECN) declaration form will be obtained from the client who opts to receive the contract note in electronic form. This declaration will remain valid till it is revoked by the client.
In case, client opts to receive the contract note in electronic form, he shall provide an appropriate e-mail id to the stock broker. The client shall communicate to the stock broker any change in the email-id through a physical letter. If the client has opted for internet trading, the request for change of email id may be made through the secured access by way of client specific user id and password.
It has been decided to replace the Clause 42 of Annexure-3... with Clause 37 of Annexure-4... Further, Clause 48 of Annexure-3... shall stand rescinded.
Stock Exchanges are directed to make necessary amendments to the relevant Bye-laws, Rules and Regulations for the implementation of the above decision; bring the provisions of this circular to the notice of their members and also disseminate the same on their websites; and communicate to SEBI, the status of implementation of the provisions of this circular in their monthly report.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Source: SecMarx — Amendment in ‘Rights and Obligations of Members, Authorized Persons and Clients’ of FMC circular No. FMC/COMPL/IV/KRA-05/11/14 dated February 26, 2015.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.