- Dealings In Derivatives Contracts
- Dealings In Derivatives Contracts
All Derivatives Contract specifications shall be announced by
the Exchange in advance from time to time. Dealings shall be
permitted on the Exchange in Derivatives Contract pertaining to
commodities as provided in these Regulations, Byelaws and Rules
of the Exchange as in force from time to time and for such
categories of Trading Members, trade types, Market Types,
Settlement Periods and for such Trading Hours as the Exchange
may specify from time to time.
The Exchange may at its discretion at any time suspend trading
in particular Derivatives Contracts as it deems fit under the
following circumstances:
- There is law and order problem, which in the opinion of
the Exchange may, extend over a period of time and affect
the market conditions adversely;
- Reasons beyond the control of parties because of which it
may not be possible in the opinion of the Exchange for the
parties to perform the contracts;
- Any other reason or circumstances under which, the
Relevant Authority deems, in the interest of Market, to
suspend trading in particular Derivatives Contract.
- Such suspension shall take effect, on such conditions and
in such time and manner as the Exchange may prescribe in
this regard.
The Exchange may also revoke suspension of trading in any
or all types of Derivatives Contracts and/or commodities at
any time.
Trading Members may trade on the Trading System in
Commodities / Derivatives Contracts that are admitted for
dealing on the Exchange, either on behalf of their
Constituents or on their own account unless otherwise
specified by the Relevant Authority and trading shall be
subject to such conditions as the Exchange may prescribe
from time to time.
Segregation of Trades
Every Member shall segregate trading by him on his own
account from that of his Clients in such manner as the
Exchange may provide.
Transactions of Director or employee
For the purpose of these Regulations, for transactions
entered into on behalf of the director or an employee of the
Trading Member or for transactions in which the director or
employee has beneficial interest, such director or employee
shall be considered as a Constituent of the Trading Member
and margins shall be collected from each such Constituent
Separately
The Trading Member cannot utilize the funds and commodities
of one Constituent for and on behalf of another Constituent
except on specific authorization of the Constituent whose
funds or commodities are utilized.
The Exchange may, at any time restrict conditionally or
unconditionally a Trading Member from dealing in a specified
Derivatives Contract
The Trading Member shall continue to be liable for all
trades executed on the system for orders entered into the
Trading System on his behalf. Trading Member shall be
responsible for all the actions of their AuthorizedPersons /
Authorized Users.
Prices quoted on the Exchange shall be basis delivery
location, either inclusive or exclusive of Local Sales Tax,
as may be prescribed by the Relevant authority, for
different commodities or contracts, from time to time, but
inclusive of customs duty (if any).
The Exchange shall from time to time provide incidence of
liability, procedures and mode of payment of local sales tax
as may be payable by the Buyer / Seller Constituents which
shall be binding on the Buyer / Seller Constituents
- Trade Operations
Trading Members shall ensure that appropriate confirmed order
instructions are obtained from the Constituents before placement
of an order on the System and shall keep relevant records or
documents of the same and of the completion or otherwise of
these orders there of.
The Trading Member shall make available to his Constituent the
Trading System order number and copies of the order confirmation
slip / modification slip be dispatched to the Constituent.
The Trading Member shall disclose to the Exchange at the time
of order entry that the order is on his own account or on behalf
of Constituents and also specify orders for buy or sell as open
or close orders
The procedures and conditions for amendment or cancellation of
orders would be subject to such conditions and as specified by
the Exchange from time to time.
Trading Members shall be solely responsible for the accuracy of
details of orders entered into the Trading System including
orders entered on behalf of his Constituents.
A potential trade match shall be subject to validation of
limits. A position limit refers to the maximum value of trades
that a Trading Member will be permitted to execute on the
Trading System. The Exchange may specify from time to time the
manner in which all position limits shall apply.
Trades generated on the system are irrevocable and 'locked in'.
The Exchange may specify from time to time the Market Types and
the manner if any, in which trade cancellation can be effected.
Where a trade cancellation is permitted and Trading Member
wishes to cancel a trade, it may be done only with the approval
of the Exchange and in the following manner:
- The Trading Member wishing to cancel the trade shall
initiate a cancellation request to the Exchange. The counter
Trading Member to the trade too will have to put in his
cancellation request separately.
- Where a Trading Member initiates such request the onus
shall be on the Trading Member to ensure that he receives a
written request from the Constituent.
- Where a trade cancellation request(s) comes to Exchange
from only one party to trade and is/are pending with the
Exchange as a result of it being not confirmed by the
counter party to such trade within such time as may be
notified by the Exchange, such request may be cancelled at
the discretion of the Exchange.
- The Exchange shall not consider any request for a trade
cancellation after such period after the market close on a
Trading Day as may be notified from time to time.
- The Exchange shall not give the reasons for rejection or
approval of any such trade cancellation request.
- The Exchange may cancel a trade suo-moto without any
request by either of the parties to the trade at any time
without giving any reason thereof which cancellation shall
be final and binding upon the parties to the trade. In the
event of such cancellation, Trading Member shall be entitled
to cancel relative contract(s) with his Constituents.
The Trading Member shall make available to his Constituent
the Trading System generated trade number and copies of the
trade cancellation slip wherever applicable
- Margin Requirements
Subject to the provisions as contained in the Exchange Bye-laws
and such other regulations as may be in force, every Clearing
Member shall in respect of trades in which he is a party,
deposit a margin with Exchange authorities, in the manner and to
the extent specified by the Exchange. Whenever a margin is
payable by a Clearing Member, it shall pay such margins directly
to the Exchange, unless otherwise directed by the Exchange.
The Exchange shall prescribe from time to time the commodities
/ Derivative Contracts, the Settlement Periods and trade types
for which margin would be attracted.
The Exchange shall levy initial margin on Derivatives Contracts
using the National Commodity & Derivatives Exchange Limited
oncept of Value at Risk (VaR) or any other concept as the
Exchange may decide from time to time and shall cover one-day
loss that can be encountered on the position on 99% of the days
Additional margins would be levied for deliverable positions,
on the basis of VaR from the expiry of the contract till the
actual settlement date plus a mark-up for default.
The margin shall be deposited with the Exchange within such
time as may be notified by the Exchange from time to time.
The Exchange shall prescribe from time to time such categories
of securities that would be eligible for a margin deposit as
also the method of valuation and amount of securities that would
be required to be so deposited against the margin amount.
The procedure for refund/adjustment of margins will be such as
may be notified by the Exchange from time to time.
The Exchange shall from time to time, impose upon any
particular Trading Member or category of Trading Member any
special or other margin requirement. On failure to deposit
margin/s as required under this clause, Exchange/Clearing House
may withdraw the trading facility of the Trading Member.
The Clearing House would release all margins after the payout.
- Order Management
- Order Type
The Exchange shall stipulate from time to time, the kinds
of orders that a Trading Member can place in the system
which may include Normal order, Special Term order, etc. as
also the order attributes that he could place thereon
- Order Attribute
- The Exchange shall from time to time allow various
order attributes subject to restrictions as prescribed
in the trading parameters, which will include
- STOP LOSS
- DISCLOSED QUANTITY
- IMMEDIATE OR CANCEL
- GOOD TILL DAY
- GOOD TILL CANCELED
- GOOD TILL DATE
- The attributes of special term order shall be
specified by the Exchange from time to time and shall
include
- The Exchange shall specify the order types and order
attributes permitted for different market types, trade
types, trading periods etc.
- Modification And Cancellation Of Orders
- A Trading Member shall be permitted to modify or
cancel his orders, provided a trade has not already
taken place in respect of that order.
- The Exchange shall specify the order types and order
attributes permitted for different market types, trade
types, trading periods etc
- Order Validation
Orders entered into the Trading System by Trading Members
shall be subject to various validation requirements as
prescribed by the Exchange from time to time including
trading parameters, turnover limits and/or other
restrictions placed on traded commodities / derivatives
contracts. The Trading System will not accept orders that do
not meet the validation checks.
- Matching Rules
- The Exchange shall specify from time to time the
kinds of order books that shall be maintained on the
system, the order matching algorithms and the matching
rules and parameters that shall be followed therein
- The Exchange may modify or change the matching
algorithms relevant to any market or order books any
time where it is necessary to do so.
- Where the Exchange feels that it is in the interests
of the market to do so, it may at any time make
unavailable any particular order books or forms of
matching, in the case of a particular security or
Trading Member or to the market as a whole.
- Without prejudice to the generality of the above, the
order matching rules would include the following:
- Orders in the Normal market will be matched on
price -time priority basis
- The best buy order shall match with the best sell
order trading on price, the best buy order would be
the one with the highest price and the best sell
order would be the one with the lowest price.
- Contract Note
Every Trading Member shall issue a contract note to his
Constituents for trades executed in such format as specified
with all relevant details as required therein to be filled in
and issued in such manner and within such time as prescribed by
the Exchange.
A contract note shall be signed by a Trading Member or his
Authorized signatory or constituted Attorney.
The Contract Notes shall be numbered with unique running serial
number commencing from one, which shall be reset only at the
beginning of every financial year. In case separate series are
maintained in respect of different dealing offices of the
Trading Member, then the dealing office name or code shall be
prefixed to the serial number.
The contract note shall be time stamped with the time of
receipt of order and the time of execution of order. The
Contract Note shall be stamped as per Indian Stamp Act.
- Brokerage
All the orders entered on the Trading System shall be at prices
exclusive of brokerage.
Trading Members shall charge brokerage at rates not exceeding
such scale as the Exchange may from time to time prescribe.
A Trading Member shall charge brokerage separately to their
Constituents and this shall be indicated separately from the
price, in the contract note.
- Margin From The Constituents
- The Trading Members must collect from its Constituents
the Margin Deposit that the member has to provide under
these Trading Regulations in respect of the business done by
the Members for such Constituents.
The Trading Members shall buy / sell derivatives contracts
on behalf of the Constituent only on the receipt of margin
of minimum such percentage as the Relevant Authority may
decide from time to time, on the price of the derivatives
contracts proposed to be purchased/sold, unless the
Constituent already has an equivalent credit with the
Trading Member. The Trading Member may collect higher
margins from Constituents, as he deems fit.
The Trading Member shall obtain a written undertaking from
the Constituents that the latter shall when called upon to
do so forthwith from time to time provide a Margin Deposit
and/or furnish additional Margin as required under these
Rules and Regulations in respect of the business done for
the Constituent by and/or as agreed upon by Constituent with
the Trading Member concerned.
The Trading Member shall demand from his Constituents the
amounts arising in respect of daily settlement in accordance
with the Clearing Corporation Regulations for business done
by the members on behalf of such Constituents on such higher
amounts, as the Trading Member deems fit. The Trading Member
may, if so desire, for administrative convenience maintain
the daily settlement margin balance up to a pre-agreed level
to avoid collecting and paying daily settlement amount on a
daily basis, which may be referred to as maintenance margin
Constituent(s) in default
In case of non-payment of daily settlement by the
Constituent, the Trading Members shall be at liberty to
close out transactions by selling or buying the derivatives
contracts, as the case may be, unless the Constituent
already has an equivalent credit with the Trading Member.
The loss incurred in this regard, if any, shall be met from
the margin money of the Constituent.
In case of open purchase position undertaken on behalf of
Constituents, the Trading Members shall be at liberty to
close out the transactions by selling Derivatives contracts,
in case the Constituent fails to meet the obligations in
respect of the open position within next trading day of the
transaction having been executed. Loss incurred in this
regard, shall be met from the margin money of the
Constituent
In case of open sale position undertaken on behalf of
Constituents, theTrading Members shall be at liberty to
close out the transactions by buying Derivatives contracts,
in case the Constituent fails to meet the obligations in
respect of the open position within next trading day of the
transaction having been executed on the exchange. Loss
incurred in this regard, shall be met from the margin money
of the Constituent
A Trading Member shall be liable to furnish the required
margin notwithstanding the non-payment of margin by a Client
to such Trading Member
- Conduct Of Business By Trading Members
- Office Related Procedure No Trading Member shall
carry on any activity connected with or prtaining to its
operations as a Trading Member of the Exchange in any office
or premises, the full address of which has not been
intimated to the Exchange with details of the activity
proposed to be so carried on therein and the person in whose
supervision and control it is to be so carried on.
Each office, department for trading on the NCDEX, shall be
under the supervision and control of the Trading Member
establishing it and of the personnel delegated with such
authority and responsibility in this regard.
Every Trading Member shall ensure that all persons acting
in his behalf on the Trading System shall subscribe at all
times to high standards of professional expertise and
integrity.
Each Trading Member shall at all times maintain such
infrastructure, staff,communication facilities and records
so as to be able to service his Constituents satisfactorily
and as per the requirements enumerated in the Exchange
Bye-laws, Rules and Regulations or any other relevant Act(s)
in force for the time being.
Where the Exchange feels it necessary, in the public
interest to do so, it may at its own instance or on a
complaint from another Trading Member or client, seek
explanation from the Trading Member regarding the level of
service or professional conduct of the Trading Member or any
of his staff where such service or conduct has been found
unsatisfactory or contrary to principles enumerated in the
Exchange Bye-laws, Rules and Regulations,or notifications,
directions or circulars issued there under.
- Supervision
- Procedures to be Followed
- Each Trading Member shall establish, maintain,
and enforce procedures to supervise its business and
to supervise the activities of its employees that
are reasonably designed to achieve compliance with
the NCDEX Bye-laws, Rules and Regulations and any
notifications, directions etc.issued there under as
well as the relevant statutory Acts.
- The Trading Member for the purpose of better
control may, if it so desires, maintain an internal
record of the names of all persons who are
designated as supervisory personnel and the dates
for which such designation is or was effective.
- c) Every Trading Member shall specifically
authorize in writing person or persons, who may be
authorized to transact on behalf of the Trading
Member and to do such acts which Trading Member may
wish to delegate to such person and make available a
copy of such power of attorney to the Exchange
before such person transacts any business on the
Exchange.
- A Trading Member shall maintain such records and
make available to inspection by any person
authorized in this behalf by the Exchange, the
information related to such Trading Member's
financial condition as prescribed by the Exchange
for this purpose.
- The Trading Member shall pay such fees, charges
and other sum as the Exchange may notify from time
to time, in such time and manner as required by the
Exchange.
- The Trading Member must inform the Exchange of
any change in the status and constitution, operation
and activities of the Trading Member
- Internal Inspections
Each Trading Member shall conduct a review, at least
annually, of the business in which it engages, which
shall be reasonably designed to assist in detecting and
preventing violations of and achieving compliance with
Bye Laws, Rules and Regulations.
- Written Approval
Each Trading Member shall establish procedures for the
review and endorsement by an appropriate senior officer
in writing, on an internal record, of all transactions
and all correspondence of its employees pertaining to
the solicitation or execution of any commodities
transaction.
- Internal Inspections
Each Trading Member shall conduct a review, at least
annually, of the business in which it engages, which
shall be reasonably designed to assist in detecting and
preventing violations of and achieving compliance with
Bye Laws, Rules and Regulations.
- Qualifications Investigated
Each Trading Member shall have the responsibility and
duty to ascertain the good character, business repute,
qualifications and experience of any person prior to
making such certification in the application of such
person for registration with the Exchange as User.
- Relation With The Constituents
Every Trading Member shall enter into an agreement with each of his
Constituents, before accepting or placing orders on the
Constituent's behalf. Such agreement shall include provisions
specified by the Exchange in this behalf (Annexure C). The Exchange
may categorize Constituents into such types as may be necessary for
the above purpose and specify the clauses to be included in
agreements to be entered into by the Trading Member depending on the
category of such Constituent. However the National Commodity &
Derivatives Exchange Limited
Trading Member's responsibility shall not in any way be reduced due
to non-execution of agreement with the Constituent.
When establishing a relationship with a new client, Trading Members
must take reasonable steps to assess the background, genuineness,
financial soundness of such person and his investment objectives
(Annexure E). The Trading Member shall obtain from all corporate
Constituents an approved copy of the Board resolution permitting
trading in derivatives
Trading Member shall make the Constituent aware of the precise
nature of the Trading Member's liability for business to be
conducted, including any limitations on that liability and the
capacity in which the Trading Member acts and the Constituents'
liability thereon. The Trading Member shall make the Constituent
aware of the risk associated with the business in derivatives
trading including any limitations on the liability and the capacity
in which the Trading Member acts and the Constituent's liability
thereon by issuing to the Constituent a copy of the Risk Disclosure
Document as specified in the (Annexure D) The Risk Disclosure
Document shall be duly signed by the Constituent and maintained and
retained by the Trading Member retain in its records for such period
as the Exchange may specify
The Trading Member shall provide extracts of relevant provisions
governing the rights and obligations of Constituents as Constituents
of Trading Members as prescribed in the Bye-laws, Rules and
Regulations, relevant manuals, notifications, circulars, any
additions or amendments thereto etc. of the Exchange, or of any
regulatory authority, to the extent it governs the relationship
between Trading Members and Constituents, to the Constituents at no
extra cost. The Trading Member shall also bring to the notice of his
Constituents, including Participants any indictments, penalties etc.
imposed on him by the Exchange or any other regulatory authority.
Recommendations to the Trading Member:
- A Trading Member shall make adequate disclosures of relevant
material information in its dealing with his Constituents.
- No Trading Member or person associated with the Trading
Member shall guarantee a Constituent against a loss in any
commodities transactions effected by the Trading Member with or
for such Constituent.
- Guidelines Governing Relationship Between Trading Member and
Constituent
The Trading Member shall not recommend to the Constituent a sale or
purchase of commodities or derivatives contracts traded on the
Trading System, unless he has reasonable grounds to believe that
such recommendation is suitable for the Constituent on the basis of
the facts, if any, disclosed by the Constituent, whether in writing
or orally, regarding the Constituent's commodity holdings, financial
soundness and investment objectives.
The Trading Member shall make adequate disclosures of relevant
material information in dealing with the Constituent including the
current best price of trade and trade or order quantities on the
Trading System, as also any allocation policy inter se Constituents,
any relevant announcement from the Exchange relating to margin,
trading restrictions as to price, quantity or where the Trading
Member is the counter party to a trade executed on the Trading
system with the Constituent.
The Trading Member shall not furnish any false or misleading
information or advice with a view to inducing the Constituent to do
business in particular Spot / Derivatives Contracts and which will
enable the Trading Member to gain thereby.
The Trading Member shall explain the Trading System and order
matching process to the Constituent before accepting any orders from
him. Where the Constituent requires an order to be placed or any of
his order to be modified after the order has entered the system but
has not been traded, the Trading Member may, if it so desires,
obtain order placement/modification details in writing from the
Constituent. The Trading Member shall accordingly provide the
Constituent with the relevant order confirmation/modification slip
or copy thereof, forthwith, if so required by the Constituent.
Where the Constituent requires any of his orders to be cancelled
after the order has been entered in the system but has not been
executed, the Trading Member may, if it so desires, obtain the order
cancellation details in writing from the Constituent. The Trading
Member shall accordingly provide the Constituent with the relevant
order cancellation details, forthwith, if so required by the
Constituent.
The Trading Member may, if it so desires, obtain in writing, the
delivery and payment requirement in any instructions of an order
that it receives from the Constituent. Where a Trading Member
receives a request for order modification or order cancellation from
the Constituent, it shall duly bring it to their notice that if the
order results in a trade in the meantime, the requests for
modification or cancellation cannot be executed. The Trading Member
shall not accumulate Constituent's order / unexecuted balances of
order. The Trading Member shall place forthwith all orders on the
trading system
The Trading Member agrees to act promptly in accordance with
instructions provided by the Constituent unless it has a discretion
as to timing, in which case it must exercise its judgment as to the
best moment. The Trading Member shall provide Constituent with a
copy of the trade confirmation slip as generated on the Trading
System forthwith on execution of the trade, if so desired by the
Constituent. The Trading Member shall at all times keep the moneys
of the Constituent in a separate bank account. Where the Trading
Member is required to pay margin money on transaction executed on
behalf of the Constituent, it shall collect the same from the
Constituent in such form and manner as may be prescribed by NCDEX.
Where the Constituent requires an executed trade to be cancelled,
the Trading Member shall obtain a written request for trade
cancellation from the Constituent. In all instances of trade
cancellation requests, the member shall explain to the Constituent
that the right to approve or reject such trade cancellation requests
rests with the Exchange. The Trading Member shall make pay out of
funds or delivery of commodities, as the case may be, to the
Constituent within 24 hours of receipt of the payout from the
Exchange.
- General Principles
- Professionalism
A Trading Member in the conduct of his business, shall observe
high standards of commercial honor of just and equitable
principles of trade.
- Adherence to Trading Practices:
Trading Members shall adhere to the Rules, Regulations and
Byelaws of the Exchange and shall comply with such operational
parameters, rulings, notices, guidelines and instructions of the
Relevant Authority as may be applicable from time to time.
- Honesty and Fairness:
In conducting his business activities, a Trading Member shall
act honestly and fairly, in the best interests of his
Constituents.
- Capabilities:
A Trading Member shall have and employ effectively the
resources and procedures, which are needed for the proper
performance of his business activities.
- Trading Principles
- Trading Members shall ensure that the fiduciary and other
obligations imposed on them and their staffs by the various
statutory Acts, Rules and Regulations are complied with.
- Trading Members shall ensure -
- that any employee who commits the Trading Members to a
transaction has the necessary authority to do so
- that employees are adequately trained in operating in the
relevant market segment in which they deal, are aware of
their own, and their organization's responsibilities as well
as the relevant Statutory Acts governing the Trading Member,
the Rules, Regulations and Byelaws of the Exchange including
any additions or amendments thereof.
- Trading Member shall be responsible for all the actions
including trades originating through or with the use of all
following variables - Trading Member Id, User Id, valid User
password at that point of time. However if the Trading
Member satisfies the Exchange that the action(s) and /or
trade(s) took place due to fraud or misrepresentation by any
other person other than his authorized person(s) and that
the action(s) and/or trades did not originate from any of
his approved workstations, the Exchange may issue such
directions as it considers just and reasonable. The
directions may include referring the matter to arbitration
and/or annulment of trade(s) so effected.
When entering into transactions on behalf of Constituents,
the Trading Members shall ensure that they abide by the Code
of Conduct and regulations as enumerated in the current
chapter of these regulations.
- No Trading Member or person associated with a Trading
Member shall make improper use of Constituent's commodities
or funds.
- No Trading Member shall publish and circulate or cause to
be published or circulated, any notice, circular,
advertisement, newspaper article, investment service or
communication of any kind which purports to report any
transaction as a purchase or sale of any commodity unless
such Trading Member can establish if called for that such
transaction was a bonafide purchase or sale of such contract
or which purports to quote the purchase/sale price for any
contract such Trading Member can establish if called for
that such quotation represents a bonafide order of such
derivatives contracts
- When entering into or arranging transactions, Trading
Members must ensure that at all times great care is taken
not to misrepresent in any way the nature of transaction.
- No Trading Member shall exercise any discretionary power
in a client's account unless such client has given prior
written authorization to a stated individual or individuals
and the account has been accepted by the Trading Member, as
evidenced in writing by the Trading Member.
A Trading Member shall not act as a principal or enter into
any agreement or arrangement with a client or client's
agents, employees or any other person connected to the
client, employee or agency, whereby special or unusual rates
are given with intent to give special or unusual advantage
to such client for the purpose of securing his business.
- The Trading Member shall not disclose the name and
beneficial identity of a Constituent to any person except to
the Exchange, Clearing House, Regulator, and concerned
Clearing Member any enquiry or inspection authority as
required by law as and when asked for and as may be required
by the Exchange from time to time.
- General Guidelines
A Trading Member shall desist from the following trading practices
while conducting business on the Exchange.
- Shielding or Assisting:
No Trading Member shall shield or assist or omit to report any
Trading Member whom he has known to have committed a breach or
evasion of any Rules, Bye-Laws or Regulations of the Exchange or
of any resolution, order, notice or direction there under of the
Governing Board or the Managing Director or of any committee or
officer of the Exchange authorized in that behalf.
- Misleading Transactions:
A Trading Member shall not- (i) make bids and/or offers for
commodities with an intention of creating a false or misleading
appearance with respect to the market for, or the price of any
commodity or; (ii) make a transaction or give an order for the
purchase or sale of commodities, the execution of which would
involve no change of beneficial ownership, unless the Trading
Member had no knowledge that the transaction would not involve a
change in the beneficial ownership of derivatives contracts
- Use of information obtained in Fiduciary Capacity:
A Trading Member who in the capacity of paying agent, transfer
agent, trustee, or in any other similar capacity, has received
information as to the ownership of derivatives contracts, shall
under no circumstances make use of such information for the
purpose of soliciting purchases and sales.
- Unfair Trading Practices
No Trading Member shall buy, sell or deal in Derivatives Contracts
in a fraudulent manner, or indulge in any unfair trade practices
including market manipulation Without prejudice to the generality of
the provisions contained, no Member shall indulge in market
manipulation: Effect, take part either directly or indirectly in
transactions, which are likely to have effect of artificially, raise
or depress the prices of Spot / Derivatives Contracts
Indulge in any act, which is calculated to create a false or
misleading appearance of trading, resulting in reflection of prices,
which are not genuine
No Trading Member shall buy, sell commodities / contracts on his
own behalf or on behalf of a person associated with him pending the
execution of the order of his Constituent or of his company or
director for the same contract
Delay the transfer of commodities in the name of the transferee
Indulge in falsification of his books, accounts and records for the
purpose of market manipulation
When acting as an agent execute a transaction with a Constituent
price other than the price at which it was executed on the exchange
Either takes opposite position to an order of a Constituent or
shall execute opposite orders which he is holding in respect of two
Constituents except in the manner laid down by the Exchange National
Commodity & Derivatives Exchange Limited
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