Guidelines for Commodity Futures Brokers

 

 

  1. Always enter/maintain true and correct registration details of clients on Exchange Trading System, and shall not change any detail without prior approval of the client

 

  1. Issue confirmations for trades executed on behalf of clients within 24 hours and obtain acknowledgment thereof

 

  1. Ensure that all requisite signed documents have been received from clients including Account Opening Form and Risk Disclosure Document

 

  1. Ensure that Know Your Customer and Customer Due Diligence is being conducted properly in compliance with anti money laundering laws and the regulations/guidelines

 

  1. Ensure that the information contained in the Account Opening Form is updated, complete and correct at all times

 

  1. Ensure that all telephonic orders and orders received from clients in person are adequately recorded and preserved

 

  1. All funds received from clients shall be transferred to the Exchange within 2 working days from the date of receipt

 

  1. All payments to clients shall be made through cross cheque or other banking instrument within 1 working day of receipt from the Exchange

 

  1. Maintain proper records of registered offices, authorized persons, branches and clients

 

  1. Ensure that investor grievance redressal mechanism is in place at all dealing locations such as head office and branches

 

  1. Ensure that all authorized persons and branches are registered with the Exchange

 

  1. Ensure that a list of commodity futures contracts that are permitted & traded at the Exchange has been prominently displayed at the head/branch offices

 

  1. Ensure that the authorized persons/branches are following and complying with all the relevant provisions of the rules, regulations, circulars or directives issued by the Exchange and Securities & Exchange Commission of Pakistan (SECP)

 

  1. Ensure that employees/authorized person only receive payments in the form of banking instruments in the name of the broker

 

  1. Ensure that name of broker, registration number and certificate of registration of authorized person along with terms and conditions of branch dealing has been displayed at the registered branches

 

  1. Always include the disclaimer specified by the Exchange while making any advertisement

 

  1. Ensure that advertisement made by the branch/authorized person should have the approval of the broker

 

  1. Notify change of the authorized person to the Exchange at least 15 days before the change

 

  1. Conduct periodic inspection of the authorized persons/branches

 

  1. Upon noticing any irregularities in the branch operations, immediately correct or deregister the authorized person or branch

 

  1. Be vigilant about any fraudulent activity of employees and authorized persons

 

  1. Approach PMEX in case of any clarification required on compliance related issues

 

 

 

  1. Do not maintain anonymous accounts or accounts that are opened or maintained in the name of fictitious persons

 

  1. Do not execute trade in client’s account without explicit written authority or instructions as per Exchange or SECP provided guidelines

 

  1. Do not alter or change terms and conditions of Standardized Account Opening Form (SAOF). Any additional terms and conditions shall not contradict with the terms and conditions of SAOF

 

  1. Do not utilize or invest funds of clients beyond the scope of PMEX and related activities

 

  1. Do not obtain any blank document or blank cheque from client

 

  1. Do not deal in cash with clients over and above the prescribed limit of Rs. 25,000. Moreover, cash dealing is only permitted in exceptional circumstances

 

  1. Do not accept third party cheques/other banking instruments from the clients

 

  1. Do not enter any wrong, contradictory or incomplete information on Exchange Trading System

 

  1. Do not attract clients by alluring advertisements, rumors, hot tips or the promise of assured returns/fixed profit

 

  1. Do not execute discretionary  trades  on behalf of  clients  in any manner

 

  1. Do not obtain or use client’s personal id and password

 

  1. Do not raise deposits from public/investors against fixed or guaranteed return on deposits as these activities are illegal and tantamount to defrauding the public

 

 

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