Regulatory Framework for Commodity Derivatives Brokers
Summary
This circular establishes the regulatory framework for commodity derivatives brokers following the merger of the Forward Markets Commission with SEBI. It mandates the harmonization of broker regulations across equity and commodity markets by categorizing existing FMC directives into three distinct parts. Part A specifically details which former FMC circulars are repealed and replaced by applicable SEBI circulars. This section details the repeal of specific FMC circulars and the continuation of others relevant to commodity derivatives markets. It mandates that exchanges continue levying current penalties while repealing the Uniform Penalty Circular. Finally, it directs stock exchanges to implement these changes, monitor compliance, and report to SEBI by October 15, 2016.
Text
Rules, directions, guidelines, instructions, circulars, or any like instruments made by the erstwhile Forward Markets Commission (FMC) shall continue to remain in force for a period of one year from September 29, 2015, or till notified by SEBI, whichever is earlier.
Regulatory provisions have been divided into three parts to harmonize provisions for brokers across equity and commodity derivatives markets consequent to the merger of FMC with SEBI.
Following FMC circulars shall stand repealed and relevant SEBI circulars shall be applicable to all commodity derivatives exchanges including regional commodity derivative exchanges for compliance by their members.
No circular issued by FMC; SEBI circulars SMD/SED/CIR/93/23321 dated Nov 18, 1993 and MRD/DoP/SE/Cir- 11/2008 dated Apr 17, 2008 become applicable.
FMC circulars regarding running account settlement stand repealed; Clause 12 of Annexure A to MIRSD/SE/Cir-19/2009 and MIRSD/Cir/01/2011 become applicable.
Multiple FMC circulars on financial documents, PAN, and inactive clients stand repealed; Clauses 1-11, 14-19 of Annexure A to MIRSD/SE/Cir-19/2009, CIR/MIRSD/01/2013, and CIR/MIRSD/64/2016 become applicable.
FMC circular on in-person verification stands repealed; Para 3 of MIRSD/Cir-26/2011 and Point 4 of Annexure 3 of CIR/MIRSD/16/2011 become applicable.
FMC circular on KRA stands repealed; MIRSD/Cir-23/2011 and Para 1 of MIRSD/Cir-26/2011 become applicable.
Multiple FMC circulars on AML and record maintenance stand repealed; CIR/ISD/AML/3/2010, CIR/MIRSD/2/2013, and CIR/MIRSD/1/2014 become applicable.
FMC circular on dealing in cash instruments stands repealed; MRD/SE/Cir-33/2003/27/08 dated Aug 27, 2003 becomes applicable.
FMC circular on pre-funded instruments stands repealed; CIR/MIRSD/03/2011 dated Jun 9, 2011 becomes applicable.
Multiple FMC circulars on SMS and email alerts stand repealed; CIR/MIRSD/15/2011 dated Aug 02, 2011 becomes applicable.
You have read the preview. Create a free account to read the full document and see every order that applied it.
Free accounts include 10 searches/day with full text access.
Source: SecMarx — Regulatory Framework for Commodity Derivatives Brokers. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.