Guidance Note-Do's & Dont's For the Clients


  1. Trade only through Registered Members of the Exchange. Check from the Exchange website at following link to see whether the Member is registered with the Exchange:
  2. Insist on filling up a standard ‘Know Your client (KYC)’ form before you commence trading.
  3. Insist on getting a Unique Client Code (UCC) and ensure all your trades are done under the said UCC.
  4. Insist on reading and signing a standard ‘Risk Disclosure Agreement’.
  5. Obtain a copy of your KYC and /or other documents executed by you with the Member, from the Member.
  6. Cross Check the genuineness of trades carried out at the Exchange through the trade verification facility available on the Exchange website at the following link. The trades can be verified online where trade information is available up to 5 working days from the trade date.
  7. Insist on a duly signed Contract Note in specified format for every executed trade within 24 hours of trade, highlighting the details of the trade along with your UCC.
  8. Ensure that the Contract Note contains all the relevant information such as Member Registration Number, Order No., Order Date, Order Time, Trade No., Trade rate, Quantity, Arbitration Clause, etc.
  9. Obtain receipt for collaterals deposited with the Member towards margins.
  10. Go through the Rules, Bye-laws, Regulations, Circulars, Directives, Notifications of the Exchange as well as of the Regulators, Government and other authorities to know your rights and duties those of the Member.
  11. Ask all relevant questions and clear your doubts with your Member before transacting.
  12. Insist on receiving the bills for every settlement.
  13. Insist on Monthly statements of your ledger account and report any discrepancies in the statement to your Member within 7 working days. In case of unsatisfactory response report the discrepancy to the Exchange within 15 working days from the date of cause of action.
  14. Pay required margins in time and only by Cheque and ask for receipt thereof from the Member.
  15. Deliver the commodities in case of sale or pay the money in case of purchase within the time prescribed.
  16. Understand and comply with accounting standards for derivatives.
  17. Ensure to read, understand then sign the voluntary clauses, if any, agreed between you and the Member. Note that the clauses as agreed between you and the Member cannot be changed without your consent.
  18. Get a clear idea about all brokerage, commissions, fees and other charges levied by the Member on you for trading and the relevant provisions/ guidelines specified by FMC/Commodity exchanges.
  19. Make the payments by account payee cheque in favour of the Member. Ensure that you have documentary proof of your payment/deposit of commodities with the Member, stating date, commodity, quantity, towards which bank account such money or commodities (in the form of warehouse receipts) deposited and from which bank account.
  20. The payout of funds or delivery of commodities (as the case may be) shall not be made to you within one working day from the receipt of payout from the Exchange, in case you have given specific authorization for maintaining running account authorization provided by you to the Member shall be subject to the following conditions:

➢ Such authorization from you shall be dated, signed by you only and contains the  clause that you may revoke the same at any time

➢ You need to bring any dispute arising from the statement of account to the notice of the Member in writing preferably within 7 (seven) working days from the date of receipt of funds/commodities or statement, as the case may be. In case of dispute, refer the matter in writing to the Investors Grievance Cell of the relevant Commodity  exchanges without delay   

➢ In case you have not opted for maintaining running account and pay-out is not received on the next working day of the receipt of payout from the exchanges, please refer the matter to the Member. In case there is dispute, ensure that you lodge complaint writing immediately with the Investors Grievance Cell of the relevant  Commodity exchange  

 ➢ Please register your mobile number and email id with the Member, to receive trade confirmation alerts/details of the transactions through SMS or email, by the end of  the trading day, from the commodity exchanges      

  1. You should familiarize yourself with the protection accorded to the money or other properly you may deposit with your member, particularly in the event of a default in the commodity derivatives market or the member becomes insolvent or bankrupt
  2. Please ensure that you have a documentary proof of having made the deposit of such money or properly with the member, stating towards which account such money or property deposited.
  3. In case your problem/grievance/issue is not being sorted out by concerned Member/Authorized person then you can escalate the matter to FMC


  1. Do not deal with any unregistered intermediaries.
  2. Do not undertake off-market transactions as such transactions are illegal and fall outside the jurisdiction of the Exchange.
  3. Do not enter into assured returns arrangement with any Member.
  4. Do not get carried away by luring advertisements, rumours, hot tips, explicit/implicit promise of returns, etc.
  5. Do not make payments in cash/take any cash towards margins and settlement to /from the Member.
  6. Do not start trading before reading and understanding the Risk Disclosure Agreement.
  7. Do not neglect to set out in writing, orders for higher value given over phone.
  8. Do not accept unsigned/duplicate contract note/confirmation memo.
  9. Do not accept contract note/confirmation memo signed by any unauthorized person.
  10. Don’t share your internet trading account’s password with anyone.
  11. Do not delay payment/deliveries of commodities to Member.
  12. Do not forget to take note of risks involved in the investments.
  13. Do not pay brokerage in excess of that rates prescribed by the Exchange.
  14. Don’t issue cheques in the name of Authorized Person.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

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