- Unless in the context it is explicitly stated otherwise, all
words and expressions used herein but not defined herein, shall have
the same meanings as specified in the following
- Forward Contracts (Regulation) Act, 1952 and the Rules framed
there under
- Rules, Memorandum and Articles of Association of Multi
Commodity Exchange of India Limited.
- In case a term is defined in more than one statute,
then its meaning as defined in that statute, which precedes the
others mentioned hereinabove, shall prevail, unless in the context
it is explicitly stated otherwise.
- With regard to the Bye-Laws of the Exchange, if not
inconsistent with or repugnant to the subject or context hereof, the
following words and expressions shall have the meanings given
hereunder:
- Additional margin means any additional margin deposit that is
required from the contracting parties to establish and/or to
maintain a position in a contract.
- Approved Office means the registered office of the exchange
member, including such premises or offices from where the member
is allowed by the Exchange to trade and/or clear on the
automated trading system or any other trading system of the
Exchange and/or to carryout back office activities.
- Approved User is an individual approved by the Exchange in
accordance with the Bye-Laws, Rules and Regulations of the
Exchange. The term 'user' may be used interchangeably with the
term 'approved user'.
- Articles" means the Articles of Association of Multi
Commodity Exchange of India Limited and includes any
modification or alteration thereof for the time being in force.
- Authorized Person means a person, who is registered with the
Exchange as an authorized or approved user of an exchange member
or participant and employed whether through a contract of
employment or otherwise by the exchange member or participant
for remuneration (whether by way of salary, commission,
allowance or otherwise) expressed in terms of money or capable
of being so expressed for any kind of work or activity, manual
or otherwise, and who gets his remuneration directly or
indirectly from the exchange member or participant for any
activity relating, directly or indirectly, to the trades done
and executed on the Exchange even if such person is not
receiving any consideration or remuneration from the exchange
member or participant for the services rendered by him.
- Authorized representative of a member means a person
authorized by a member to represent and act on behalf of that
member and registered as such under the Articles of Association,
Bye- Laws, Rules and Regulations of the Exchange.
- Automated Trading System of the Exchange means the
computerized system provided by the exchange for trading in
contracts permitted by the Exchange, access to which is made
available to an exchange member, for use either by himself or by
his authorized persons, participants, authorized users and
clients, and which makes available, quotations in the contracts
traded on the Exchange, facilitates trading in such contracts
and disseminates information regarding trades effected, volumes
transacted, other notifications, etc., as may be decided to be
placed thereon by the Relevant Authority. The Automated Trading
System shall hereafter be referred to as "ATS".
- "Basis" variety or grade is the description of a
standard variety or grade for a commodity permitted for trading
in its futures contract at the exchange as specified in the
contract specifications laid down in the Rules and/or
Regulations of the Exchange and which is deliverable without any
"on" or "off" allowance.
- Bank means a scheduled commercial bank or a foreign bank
licensed to carry on the business of a bank in India by the
Reserve Bank of India.
- Board means the Board of Directors of the 'Multi Commodity
Exchange of India Limited' and may be referred to as the
Governing Board.
- Books of Accounts, Records and Documents include books of
accounts, records and documents which are required to be
maintained under the Forward Contracts (Regulation) Act, 1952
and the Rules framed there under, and the Bye-Laws, Rules and
Regulations of the Exchange and the Clearing House and includes
the records maintained in a computer or in any electronic or
other form of the member of the Exchange.
- Branch Office in relation to an exchange member means any
establishment described as a branch, any establishment carrying
on either the same or substantially the same activity as that
carried on by the head office, except the offices of the clients
trading through the exchange member who has trading rights in
the exchange.
- Buy Order means an order to buy a contract permitted for
trading on the exchange.
- Buyer means and includes, unless the context indicates
otherwise, the buying client, the buying exchange member acting
either as an agent on behalf of the buying client or buying on
his own account.
- Bye-Laws, Rules and Regulations mean the Bye-Laws, Rules and
Regulations of the Exchange made pursuant to the Articles of the
Association of the Exchange and these Byelaws, and includes any
re-enactment, modification or alteration made thereof, as also
circulars, orders and notices issued by the Board or any
committee constituted by it and empowered to issue such
circulars, orders and notices.
- Certified warehouse receipt means a receipt issued under the
authority of the Exchange or any agency approved by the exchange
as a certified warehouse, evidencing proof of ownership of a
stated quantity of commodities of a stated grade and quality by
the beneficial owner or the holder of the certified warehouse
receipt. Certified warehouse receipt may either be in physical
form or in Dematerialized /electronic form as may be permitted
by law.
- Certified warehouse means a warehouse approved and designated
by the Exchange for making deliveries to and taking deliveries
from for fulfilling contractual obligations resulting from
transactions in commodity contracts.
- Chairman means the Chairman of the Board of Directors of
Multi Commodity exchange of India Limited.
- Chief Executive Officer means the Chief Executive Officer of
the Exchange appointed by the Board.
- Circular Trading means and relates to trading by a client or
an exchange member or a group of related exchange members and/or
their clients, normally through more than one exchange member
and executing trades, with one or more entities of this group
entering buy orders and on the other side one or more entities
of the same group and/or with other unconnected entities in the
market entering sell orders or vice versa with a design to
manipulate the price of a contract and/or to create artificial
volumes in a contract.
- Clearing Agency means and includes the Clearing House and/or
Clearing Corporation, whose services are availed of by the
Exchange, for carrying out clearing, guaranteeing and settlement
by delivery or otherwise of transactions affected on the
Exchange.
- clearing bank means a bank that is designated or appointed to
provide banking and other facilities to the Exchange, the
Clearing House of the Exchange and members of the exchange to
facilitate clearing and settlement functions.
- Clearing Delivery in relation to settlement of transactions
effected on the Exchange means clearing and settlement of such
transactions by delivery through the Clearing House or Clearing
Corporation in the manner prescribed in the Bye-Laws, Rules and
Regulations of the Exchange.
- Clearing House means the division of the Exchange, or an
entity designated as such by the Exchange, providing the
services of settlement of transactions to the exchange members,
and guaranteeing settlement by delivery or otherwise of the
obligations to the clearing members, on behalf of the Exchange.
- clearing member means a trading cum clearing member or an
institutional clearing member of the Exchange who has the right
to clear transactions in contracts that are executed in the
trading system of the Exchange.
- Client means a person who has executed an agreement with a
member of the Exchange for dealing through such member in
contracts permitted on the Exchange.
- Committee means any committee appointed by the Governing
Board empowering it to perform such functions as the Board may
determine from time to time, including framing of Rules and
Regulations.
- Company means Multi Commodity Exchange of India Limited and
shall also be referred to as MCX or the Exchange.
- Contract month, Delivery month, Contract period means that
month in which contractual obligations in respect of
forward/futures contracts are due for fulfillment by the parties
to the contract. Explanation: Contract Months shall be referred
as 'contracts' in these Bye-Laws. For example, a futures
contract for settlement in the month of May can be referred to
as May Contract.
- Contracts shall mean and include all types of contracts in
commodities, price indices, securities mentioned in the Objects
clause of the Memorandum of Association of the Company and are
specifically approved by the Forward Markets Commission and the
Company for trading on the Exchange and include the derivatives
of all or any of such contracts permitted for trading on the
Exchange.
- Cross Deals mean and include deals in which the same exchange
member is both on buy and sell sides of a trade and where the
buy and sell orders have been entered into within such time, as
may be specified by the Relevant Authority from time to time,
and where the price of both the orders is the same and where the
quantity is by and large the same.
- Daily Official List means the publication in whatever mode,
including an electronic mode, issued by or under the authority
of the Exchange, which contains details of prices and quantities
of the commodity contracts traded on any given day, and any
other relevant information.
- Days of tender mean the days on which relevant delivery
documents and certified warehouse receipts are permitted to be
presented to the Clearing House of the Exchange.
- Delivery centers are the canters where the commodities
permitted for trading on the Exchange can be delivered by the
seller against his outstanding short open position during the
delivery period through issue of delivery orders.
- Delivery order means an order issued by a seller in the
prescribed form in favor of the Clearing House offering delivery
of goods at one or more permitted delivery centers in
fulfillment of his obligation against an expiring contract.
- Delivery order rate means the rate at which delivery order
shall be issued to the Clearing House on the designated tender
day or on the contract expiry date.
- Delivery means the tender and receipt of warehouse receipts/
or any other document of title to goods by issue of delivery
order in settlement of a contract.
- Deputy Managing Director means the Deputy Managing Director
appointed by the Board.
- Derivatives Contract shall mean and include a contract which
derives its value from the prices, or index of prices, of
underlying commodities, the trading of which is carried out in
such manner as provided under these Bye-Laws, Rules and
Regulations.
Explanation: For the purpose of this definition, derivative
includes a contract, whose value is derived from a commodity,
commodity price or prices, or an index based on the prices of
commodities or commodity contracts as may be specified by the
Exchange.
- Delivery Period means the period during which the commodities
are tendered in terms of the contracts in fulfillment of the
transactions executed under the Byelaws, Rules and Regulations
of the Exchange or under the orders issued in exercise of the
powers vested by any of them, and includes tender days as
prescribed by the Exchange for different contract months.
- Directors mean the Directors of Multi Commodity Exchange of
India Limited for the time being.
- Due Date/Contract Expiry Day/Contract Maturity Day means the
maturity date (last day) on which a specific contract in a
specific commodity expires and is not available for trading
thereafter.
- Due Date Rate means the settlement price fixed for squaring
up (closing out) of all the outstanding contracts in a contract
month on the due date, which are not fulfilled by giving or
taking delivery.
- Exchange means Multi Commodity Exchange of India Limited and
the premises and/or the system for executing transactions in
ready, forward or futures delivery contracts in commodities that
are permitted and /or approved by the Forward Markets
Commission.
- Exchange Member - Client Agreement means an agreement, which
is executed between an Exchange member and his client, in the
form and manner prescribed by the Exchange from time to time.
- FCRA and FCRR mean the Forward Contracts (Regulation) Act,
1952 and Forward Contracts (Regulation) Rules, 1954
respectively.
- financial year means year commencing from 1st April and
ending with 31st March of the following year.
- Financing or Financial Deals mean and include deals entered
into by two exchange members for a client or a group of clients
under the same exchange member and/or different exchange
members, normally done to secure payment against the first leg
of a transaction, which is carried out between the client and
the exchange member on principal-to-principal basis.
- Forward contract means the forward contract as defined in the
Forward Contracts (Regulation) Act 1952, namely a contract for
the delivery of goods and which not a ready delivery contract
is.
- 'Forward Markets Commission' or 'Commission' or 'FMC' shall
mean the Forward Markets Commission established by the
Government of India in accordance with the Forward Contracts
(Regulation) Act, 1952.
- Futures Contract means a forward contract (that is neither a
non-transferable specific delivery contract nor a transferable
specific delivery contract as defined in the FCRA), the terms,
conditions and specifications regarding the quality of 'basis'
and 'tender able varieties', delivery centers, delivery months,
payment with "on" and "off" allowances, as
the case may be, for delivering varieties other than the 'basis'
variety, unit of trading and quotation, etc. are so standardized
in all their details in the Byelaws, Rules and Regulations of
the Exchange for specified commodities and price indices that
the parties to such a contract have merely to agree on only the
quote and quantity to be traded for delivery and settlement in
the trading system of the Exchange so as to tender such
agreement to buy and sell the underlying commodity or price
index enforceable in law, and is in no way void, void able or
illegal under any law in force for the time being..
- Gross open interest means the sum of the open interest of the
market aggregated over all contract months pertaining to all
commodities.
- Gross open position for a contract month or Outstanding
obligations in a contract means the sum of either the long
positions or the short positions which remain to be settled in
that contract for the contract month.
- Hours refer to hours based on Indian Standard Time (IST).
- Institutional clearing member shall mean a member of the
Exchange who has the right to clear transactions in contracts
that are executed on the trading system of the Exchange by
trading members. An institutional clearing member shall not have
the right to trade on the trading system of the Exchange for
themselves or their clients.
- Last day of trading means the day on which trading ceases for
a particular contract month in a specific commodity and after
which trading is not permitted.
- Limit Order Book is a book maintained on the ATS or any other
trading system of the Exchange, which stores unmatched limit
orders for matching on the day of entry of the order on the ATS.
- Limit Order, in the case of a buy order, means the rate at or
below which the order may be matched on the ATS and in the case
of a sell order means the rate at or above which the order may
be matched on the ATS.
- Long Position means the net outstanding purchase obligations
of a person, whether a member or not, in respect of his
transactions in a contract month for a commodity or its price
index at any given point of time, whose settlement is yet to be
effected.
- Managing Director means the managing director of the Company
appointed by the Board in accordance with the provisions of the
Articles of Association of the Exchange
- Margin means a deposit or payment of cash/other specified
assets/documents to establish or maintain a position in a
contract and includes initial margin, special margin, ordinary
margin, delivery period margin, additional margin and variation
margin or any other type of margin as may be determined by the
Exchange from time to time.
- Market Maker means an exchange member registered on such
terms and conditions, as may be prescribed in these Bye-Laws,
Rules and Regulations, for making a market in the specific
commodities and/or contracts assigned to such member and on such
terms and conditions as may be prescribed by the Exchange from
time to time. Explanation: Market maker shall offer at all times
during the trading hours of the Exchange, quotations for both
buying and selling of contracts in specific commodities as
determined by the Exchange for him.
- Market Order means an order for a specified quantity of a
contract to be bought or sold at the best available order/quote
prevailing on the trading system(s) of the Exchange at the time
of entry of the order on the trading system(s) of the Exchange.
- Market Type means and refers to the different markets in
which trading is allowed on the ATS or any other trading system
allowed by the Exchange.
- Mark-to-market means a process by which all the transactions
executed in the exchange for a contract month are priced at the
settlement price decided by the Clearing House and on the basis
of which receipts and payments are affected by the Clearing
House.
- 'Member of the Exchange' or 'Exchange Member' means a person,
a sole proprietary firm, joint Hindu family, a partnership firm,
a company (as defined under the Companies Act), a co-operative
society, a body corporate or public sector organization or
statutory corporation or a government department or
non-government entity or any other entity admitted as such by
the Exchange for trading, clearing or settlement of contracts
permitted in the Exchange and shall not mean a shareholder of
the Company unless expressly stated. Membership of the Exchange
in this context shall not mean or require or entitle
shareholding in the Company.
- Month means a month reckoned according to the English
calendar.
- Net open interest of the market means the sum of either the
long or short net open positions aggregated over all contract
months pertaining to all commodities, without any netting of the
positions of one contract month with another contract month.
- Net open position of a person in a commodity for a contract
month means a) the total of long positions that remain to be
settled less the total of short positions that remain to be
settled if the long positions exceed the short positions and b)
the number of short positions that remain to be settled less the
number of long positions that remain to be settled if the short
positions exceed the long positions.
- Open interest of the market for a specified contract month
means the total volume of transactions in a contract for a
contract month, which remain to be settled. Open interest of the
market is equal to either the total long positions, which remain
to be settled or the total short positions, which remain to be
settled in that contract for the specified contract month, the
two being always equal.
- Order means an offer to buy or sell any contract through the
ATS or any other trading system permitted by the Exchange for
specific commodities.
- Ordinary margin means the margin deposit that is required
from the contracting parties to establish a position in a
contract month and may be called as initial margin.
- Participant means and refers to an entity registered as such
in accordance with these Bye-Laws, Rules and Regulations framed
from time to time for such purpose and subject to such terms and
conditions, as may be prescribed by the Relevant Authority.
- Pay-in, in respect of transactions done on the Exchange,
means making available funds to the clearing agency by the
exchange members in accordance with the applicable settlement
schedule notified by the clearing agency from time to time.
- Pay-in Date means the date and time prescribed by the
Exchange or its clearing agency for each settlement by which
date and time, exchange members are required to perform their
obligations by way of payment of funds as applicable, to the
clearing agency.
- Pay-out, in respect of transactions done on the Exchange
means release of funds by the clearing agency to the exchange
members who become entitled to receive them to the extent of and
upon their fulfilling their pay-in obligations into the clearing
agency, in accordance with the applicable settlement schedule
notified by the Exchange or clearing agency from time to time.
- Pay-out Date means the date and time prescribed by the
Exchange or clearing agency for each settlement on which date
and time, the clearing agency shall be required to release funds
to the respective accounts of the exchange members and/or
clients.
- Quote means a bid price and/or an offer price given by an
exchange member for a contract on the ATS or any other trading
system allowed by the Exchange.
- Rate means the price of unit of quote specified in the
contract specifications for a contract transacted on the ATS or
any other trading system allowed by the Exchange.
- Ready delivery contract means a contract as defined in the
Forward Contracts (Regulation) Act, 1952.
- Registered Non-Member (RNM) means a client of a member of the
Exchange who is registered with the Exchange to transact in
contracts in specified commodities permitted by the exchange for
such registered nonmember through that exchange member.
- Relative means a person who is a relative within the meaning
assigned under the Companies Act, in force from time to time.
- Relevant Authority means and refers to the Governing
Board/any Committee of the Governing Board/ any Committee
appointed by the Governing Board, Managing Director or any other
official authority authorized by the Managing Director or
Exchange or clearing agency to take such decisions and/or
actions related to the operations of the Exchange or clearing
agency, as may be provided for in the Articles of Association,
Rules, Bye-Laws, Regulations, Circulars or any Notice or any
internal order that may be issued by the Exchange in this regard
from time to time.
- Relevant Contracts mean Contracts pertaining to the relevant
trading segment of the Exchange.
- Retention Period, in relation to an order, means the period,
up to which the unmatched quantity of an order is to be retained
on the ATS or any other trading system of the Exchange, as a
standing limit order in the limit order book.
- ' Rules', unless the context otherwise, means rules of the
Exchange drawn from time to time for regulating the activities
and responsibilities of the members of the Exchange and as
prescribed by the Relevant Authority from time to time for the
constitution, organization and functioning of the Exchange and
these rules shall be subject to the provisions of FC(R) A and
FC(R) R. 2.3.87 Secretary shall mean a Company Secretary as per
the Companies Act.
- Secretary shall mean a Company Secretary as per the Companies
Act.
- Sell Order means an order to sell a contract permitted for
trading on the Exchange.
- Seller means and includes, unless the context indicates
otherwise, the selling client, and the selling exchange member
acting as an agent on behalf of such selling client and denotes
the selling exchange member when he is dealing on his own
account.
- Settlement Day means the day fixed by the Relevant Authority
for members of the Exchange to settle their transactions as per
instruction of the Exchange.
- Settlement price for a contract and a contract month means
the price of a contract for the purpose of payment of
differences (or dues) pertaining to all fresh and outstanding
position that remain to be settled. Settlement price shall be
determined for the settlement days and shall be based on price
quotations of transactions executed in accordance with the
Bye-Laws, Rules and Regulations of the Exchange and other
information available on the daily official list.
- Short Position means the net outstanding sell obligations of
a person, whether a member or his client, in respect of his
transactions in a contract month for a commodity or its price
index, at any given point of time, whose settlement has yet to
be effected.
- Special margin means the margin deposit that is required from
the contracting parties to hold a position in a contract as
specified by the Relevant Authority empowered in this behalf
and/or as directed by the Forward Markets Commission.
- Standing Committee means a committee constituted and
empowered by the Board under the Bye-Laws, Rules and Regulations
for the management of the business and regulatory affairs of the
Exchange. .
- Standing Order means an unmatched order, which is retained on
the ATS or any other trading system of the Exchange in the limit
order book.
- Structured Deals mean and are similar to cross deals except
that the exchange members on the buy and sell sides of the trade
are different.
- Tender able or Deliverable varieties or grades are varieties
or grades other than 'basis' variety or grade which are
permitted by the Exchange to be delivered or tendered against a
futures contract for a commodity traded on the Exchange with or
without the "on" and "off" allowances as may
be prescribed from time to time by the Relevant Authority under
these Bye-Laws and Rules and Regulations of the Exchange.
- To Input means to transmit an order to buy or sell a contract
from a trader workstation (TWS) of an exchange member and any
other information, as may be required, into the ATS.
- To Match means an order to sell or a part of an order to sell
which matches with an order to buy or a part of an order to buy,
or vice versa, in terms of price and quantity, either in part or
full, and resulting into a trade.
- Touch Line means the best bid and offer, together with the
related quantity for buy and sale, displayed on the TWS.
- Trade means a transaction for purchase and sale of a contract
resulting from the matching of a bid to buy or a part of a bid
to buy with an offer to sell or a part of an offer to sell, or
vice versa on the ATS or any other trading system permitted by
the Exchange.
- Trader Work Station (hereafter referred to as "TWS")
means a computer terminal of an exchange member which is
approved by the Exchange and which is installed and connected to
the ATS or any other trading system of the Exchange, for the
purpose of trading on the Exchange.
- Trading Member is a member of the Exchange admitted in
accordance with the Bye -Laws, Rules and Regulations, of the
Exchange for trading in futures contracts and, or their
derivatives for one or more specified commodities or securities
on his own account or on account of his clients, but without
having clearing and settlement rights.
- Trading Period means the duration of a contract prescribed by
the exchange during which a contract will be available for
trading. Explanation: If the May 2003 contract in a commodity is
made available for trading from January 15, 2003, the period
between January 15, 2003 till the contract expiry date in the
month of May shall be the trading period for the May contract.
- Trading system means such spaces, systems and networks as the
Company may from time to time determine and which shall be
notified by the Board as reserved for trading in contracts for
specific commodities permitted on the exchange, and also
includes its trading segments.
- Trading Segment or Segments mean the different segments or
divisions into which the commodities, contracts and centers of
trading are admitted to dealings on the Exchange, as classified
by the Relevant Authority for admission of members to the
exchange and for the purpose of trading on the ATS or any other
trading system approved by the Exchange.
- Trading session of a working day means the hours of that day
during which the sale and purchase of contracts are permitted by
the Exchange.
- Trading-cum-clearing member means a person who is admitted by
the Exchange as a member of the Exchange conferring a right to
trade and clear through the Clearing House of the Exchange as a
clearing member and who may be allowed to make deals for himself
as well as on behalf of his clients and clear and settle such
deals only.
- Underlying or underlying commodity means the commodity with
reference to which ready, forward, futures and other contracts
are permitted to be traded by the Exchange from time to time.
- Unit of Trading means the minimum quantity of a contract that
can be purchased or sold, as may be specified by the Exchange,
from time to time in the contract specifications for a
commodity.
- Unit of Quotation means the specified quantity of a commodity
for which the bid or offer price may be given by an exchange
member for a contract month.
- Variation margin means the difference between the contractual
monetary value of a contract and the monetary value of the
contract determined at the settlement price.
- Warehouse means and includes any place of storage, go down,
warehouse, tank, silos, store house, where the commodities
traded on the Exchange are stored.
- Warehouse Receipt means a document, whether in physical or
electronic form evidencing a commodity being held in the
approved warehouse.
- Working day means a day on which the sale and purchase of
contracts is permitted by the Exchange.
- Words importing singular number shall include plural number
and vice versa. Words importing masculine gender shall include
feminine gender number and neuter gender and vice versa.
Preliminary
- Power to Frame and Amend Rules, Bye-Laws and Regulations
Subject to the provisions of these Bye-Laws, the Articles of
Association and Rules of the Exchange, the Governing Board or
the Committee appointed and empowered by the Governing Board
shall have powers to frame Bye-Laws, Rules and Regulations from
time to time for efficient functioning and operations of the
Exchange and to regulate the functioning and activities of the
members of the Exchange, their authorized representatives or
persons, approved users, Clearing House or Clearing Corporation,
Clearing Banks, and all other persons operating under or through
them or dealing with them both inter-se and in relation to the
Exchange and, determine trading and delivery specifications for
contracts in commodities and price indices and their derivatives
permitted for trading on the Exchange, including method of
trading, clearing, settlement and other operations related
thereto.
The Governing Board or such Committee may, from time to time,
amend, add to, alter, modify, delete or repeal any of the
provisions of the Rules, Bye-Laws and Regulations, as may be
deemed necessary or appropriate or if so desired or directed by
the FMC. The Regulations shall provide for necessary
authorization for taking care of operational requirements, which
need to be enforced with immediate effect. The Governing Board
or the Committee shall forthwith amend, alter or withdraw any
Rule, Bye-Law or Regulation, if so desired by FMC. The Rules,
Bye-Law and/or Regulations brought into force by a direction of
FMC may be amended, added or altered by the Governing Board or
the Committee, subject to the condition that such amendments,
additions or alterations shall come into force only after
approval of FMC.
Without prejudice to the generality of the foregoing, the
Governing Board or the Committee of the Board so appointed and
empowered, may from time to time prescribe the Rules and the
Regulations with a view to organize, facilitate, maintain,
manage, control and regulate the operations, functions and
supervision of the Exchange and to regulate the activities and
functioning of the exchange members, participants, authorized
representatives and authorized persons, and approved users, as
may be necessary or expedient, and provide for necessary
authorization wherever requirements are operational in its
nature and such requirements need to be enforced with immediate
effect in the following matters.
- Trading, Clearing and Settlements on the Exchange
Subject to the foregoing Byelaw, the Board or the Committee
empowered for the purpose may provide for Rules, Regulations
or issue orders for: -
- Trading on the exchange
- Determination of trading sessions and proceedings
in such trading sessions on the ATS of the Exchange
or any other trading system allowed by the Exchange,
for specified commodities, price indices or their
derivatives permitted by the Exchange.
- Allotment of TWS to the exchange members and
appointment of approved users.
- Determination of units of quotation and trading
and variations in bids and offers and minimum and
maximum size of orders.
- Determination of 'basis' variety and deliverable
varieties for different commodities, "on"
and "off" allowances for tendering
varieties other than the basis, contract (delivery)
months, delivery periods, delivery centers, tender
days and the other appropriate terms and conditions
of contracts to be entered into for different
commodities, the forms of contracts, the time, mode
and manner of performance of the contracts between
members of the exchange inter-se, between clients of
the exchange member inter-se, and between members of
the Exchange and clients inter-se.
- Determination of the transaction and clearing
fees payable by the members of the Exchange for
trading in Different commodities and other charges
that may be collected by the Exchange from members,
Registered non- members, participants, approved
users, etc.
- Suspension of trading in one or more contracts
permitted for trading in the Exchange.
- Procedure for settlement of disputes relating to
quality, price and delivery
- Determination of the Due Date Rate and Penalties
for non-fulfillment of contracts by giving or
receiving deliveries on the due date.
- Norms, procedures, terms and conditions,
incidental to or consequential to transfer and
closing out of contracts.
- Manner of operations and interface with the
Clearing House and the clearing banks of the
Exchange.
- Transactions in Exchange Subject to Risk
Management & Surveillance
- Determination of various types of margins on the
transactions.
- Rates of ordinary margins and mode of their
payment.
- Special or additional margins and mode of their
payment.
- Exemption from payment of margins.
- Lien on capital and margin deposits.
- Penalty for non-fulfillment and/or evasion of
margin requirements.
- Client's liability to pay margins.
- Exchange members' responsibility to collect
margins from the clients.
- Exchange members' responsibility to maintain
proper books of accounts.
- Any other matter relating to trading in the
Exchange.
- Any other matter relating to trading in the
Exchange.
- Clearing and Settlement of Transactions
- Procedure for determination of settlement prices.
- Procedure of marking-to-market, delivery, payment
and closing-out of transactions in contracts where
trading allowed.
- Clearing and other settlement forms and returns,
delivery and receive orders, statement of accounts
and balance sheet, norms and procedures for clearing
and settlement of transactions and delivery and
payment.
- Norms and procedures for establishment and
functioning of Clearing House for clearing and
settlement of trades.
- Supervision of Clearing House and framing of
Rules and Regulations for supervision of clearing
and settlement activities of the members of the
exchange
- Norms and procedures for availing of banking
services from clearing banks for clearing and
settlement of trades
- Norms and procedures for availing services from
warehouses and warehouse keepers for physical
delivery of commodities and from quality
certification agencies or laboratories for quality
specifications of commodities deposited with
warehouse keepers and of commodities tendered for
delivery against contracts traded in the exchange.
- Any other matter relating to clearing and
settlement of transactions and deliveries thereto,
including surveys and sampling for quality testing.
- Appointment of surveyors, quality testing
laboratories and other appropriate authorities and
agencies for settling quality disputes arising out
of deliveries.
- Procedure for dissemination of information and
announcements to be broadcasted by the Exchange on
the ATS, or its computer system or internet.
- Issue of guidelines for advertisements, booklets
or circulars to be published by the members of the
Exchange in connection with their business
activities.
- Appointment of monitoring, surveillance and
intelligence agencies for monitoring trading at the
Exchange in contracts for different commodities
- Any other matter, as may be decided by the
Governing Board or Relevant Authority from time to
time.
- Setting-up of Settlement Guarantee Fund,
Client Protection Fund and Other Funds
- Norms, procedures, terms and conditions for
contribution by members of the Exchange and others
to Settlement Guarantee Fund, Client Protection Fund
or any other fund that may be established by the
Exchange or Clearing House of the exchange or any
clearing corporation set up or approved by the
Exchange.
- Administration, utilization, maintenance and
investment of the corpus of the Settlement Guarantee
Fund, Client Protection Fund or any other fund
established by the Exchange or Clearing house or
clearing corporation, set up or approved by it.
- Norms, procedures, terms and conditions for
guaranteeing of settlement obligations of the
members of the Exchange through the Settlement
Guarantee Fund.
- Conciliation and Arbitration
In all claims, differences and disputes, irrespective of
whether the Exchange is a party or not, arising out of or in
relation to transactions on the Exchange including any
agreements and contracts, made subject to these Bye-Laws or
the Rules or Regulations of the Exchange or with reference
to anything incidental thereto or in pursuance thereof or
relating to their validity, construction, interpretation,
fulfillment or the rights, obligations and liabilities of
the parties thereof and including any question of whether
such agreements, contracts and transactions have been
entered into or not, the parties shall adopt conciliation
proceedings subject to the provisions of these Bye-Laws and
the Arbitration and Conciliation Act, 1996. In case the
conciliation proceedings do not result in any settlement,
the dispute shall be referred to and decided by arbitration,
as provided in these Bye-Laws and Rules and Regulations as
prescribed by the Board or the committee appointed for the
purpose from time to time. For that purpose, the Board or
such committee may provide for.
- Norms, procedures, forms, jurisdiction, terms,
conditions and scale of arbitration fees and other
charges for reference to arbitration.
- Appointment of conciliation officers, arbitrators,
substitute arbitrators and umpires
- Procedure for serving notice of hearing and
adjournment of hearings and communications to the
parties and witnesses.
- Procedure for appearance, hearing, filing of
information and counter claims and taking witnesses and
evidence of assessors and experts
- Procedure for issue of arbitration awards
- Procedure for implementation of arbitration awards.
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- Power to Prescribe Enabling Provisions
The Governing Board or Relevant Authority may, from time to time,
issue clarifications or directives, as may be required from time to
time, to remove any difficulty or ambiguity in implementing the
provisions of any of the Bye-Laws, Rules and Regulations of the
Exchange, which shall have the same effect as these Bye-Laws, Rules
and Regulations framed there under.
- Jurisdiction
These Bye-Laws shall be applicable on all the members and
participants of the exchange, authorized persons, approved users,
clients and all entities involved in trading, clearing and
settlement of transactions, to the extent specified herein. These
shall be subject to the jurisdiction of the Courts in Mumbai, where
the Exchange is situated, irrespective of the place of business of
the members of the Exchange in India or abroad. All transactions
entered into or executed through the ATS or any other trading system
of the Exchange located at the premises of the Exchange at any place
shall be deemed to have taken place in the city of Mumbai only and
the place of contracting as between the members of the Exchange
shall be at Mumbai, irrespective of the locations of the Trader
Workstations of the members connected thereto. All disputes under
these Bye-Laws shall be subject to the exclusive jurisdiction of the
Courts in Mumbai, irrespective of the location of the place of
business of the members of the Exchange and of their clients or the
place where the concerned transaction may have taken place. The
Bye-Laws, Rules and Regulations of the Exchange shall be governed by
and construed in accordance with the laws in force in India. Every
exchange member shall expressly provide in the contract notes to be
issued by him that only the Courts at Mumbai shall have the
exclusive jurisdiction for claims in relation to any dispute arising
out of or in connection with or in relation to such contract notes.
- Location for Arbitration between Members of the Exchange,
other Intermediaries and Clients
The location where arbitration shall take place shall be such place
as may be identified by the Exchange from time to time and intimated
to the arbitrator and the parties to the dispute accordingly.
- Records for Evidence
The records of the Exchange as maintained by a central processing
unit or a cluster of processing units or computer processing units
or on the ATS or any other trading system of the Exchange, whether
maintained in any register, magnetic storage units, electronic
storage units, optical storage units or computer storage units or in
any other manner or on any other accepted media, shall constitute
the agreed and authenticated record in relation to any transaction
entered into or executed through the ATS, or any other trading
system of the Exchange.
The records as maintained by the Exchange shall, for the purpose of
any dispute or claim between the members of the Exchange inter -se
or between any exchange member and his clients or between the
members of the Exchange and the Exchange or the approved Clearing
Corporation or Clearing House regarding trading, clearing or
settlement of any deal or transaction carried out on the ATS of the
Exchange or any other trading system of the Exchange and reported to
the Exchange, constitute valid and binding evidence between and
among the parties.
- Governing Language
All notices, writings, reports and documents, which shall be
issued by the Exchange, in relation to the working and functions of
the Exchange, shall be in English language, which shall be the
governing language of the Exchange.
- Limitation of Liability
The Exchange shall not be liable for any activities of its members
or of any other person, authorized or unauthorized, acting in the
name of any member, and any act of commission or omission by any one
of them, either singly or jointly, at any time shall not be in any
way construed to be an act of commission or omission by any one of
them, as an agent of the Exchange. Save as otherwise specifically
provided in these Bye-Laws and in the Rules and Regulations of the
Exchange, the Exchange shall not incur or shall not be deemed to
have incurred any liability and accordingly, no claim or recourse
shall lie against the Exchange, any member of the Governing Board/or
committee duly appointed by it or any other authorized person acting
for and on behalf of the Exchange, in respect of or in relation to
any transactions entered into through the exchange made by its
members and any other matters connected therewith or related
thereto, which are undertaken for promoting, facilitating,
assisting, regulating, or otherwise managing the affairs of the
Exchange to achieve its objects as defined in the Memorandum and
Articles of Association of the Exchange.
- Protection for Acts Done in Good Faith
No claim, suit, prosecution or any other leg0al proceedings shall
lie against the Exchange or any member of the Governing Board or any
Committee duly appointed by it or any other duly authorized person
acting for and on behalf of the Exchange, in respect of any thing
which is done or intended to be done or omitted or intended to be
omitted in good faith in exercise of any power under these Bye-Laws
or Rules or Regulations of the Exchange or in pursuance of any order
or any other kind of communication received by the Exchange, in
writing, from any court, tribunal, Central or State Government, FMC
or any other competent regulatory or revenue authority empowered
under any law or delegated legislation for the time being in force
in that behalf.
- Secrecy or Confidentiality
- The Exchange shall take necessary steps to preserve and
protect the details, particulars, data or information available
in the ATS and its computer system. The Exchange shall cause its
employees who, in the normal course of discharge of their
duties, are likely to have access to details, particulars, data
or information relating to any business transactions of the
members of the Exchange to maintain complete confidentiality in
respect of all such details, particulars, data and information
by those employees at all times.
- The Exchange may provide or disclose such details,
particulars, data or information relating to any business
transactions of its members or in respect of any commodity or
security admitted to dealings on the Exchange as may be required
or directed in writing by any court, tribunal, Central or State
Government, FMC or any other competent regulatory or revenue
authority empowered under any law or delegated legislation for
the time being in force in that behalf.
- No exchange member, approved user, authorized person or any
of their employee shall be entitled to visit or inspect any
premises of the Exchange, access whereto is restricted, without
the prior written permission of the Exchange or to require
discovery of any information with respect to any activities of
the Exchange or any matter which is or may be in the nature of a
trade secret, mystery of trade, secret process or any other
matter which may relate to the conduct of the business and which
in the opinion of the Governing Board or Relevant Authority may
not be expedient in the interest of the Exchange to disclose.
- Indemnity
Each member of the Exchange and the Clearing Agency, if not a part
of the Exchange, but an independent entity engaged in clearing and
settlement of transactions entered into on the Exchange, shall
indemnify and keep indemnified the Exchange from and against all
harm, loss, damages, injury and penalty suffered or incurred and all
costs, charges and expenses incurred in instituting and/or carrying
on and/or defending any suits, action, litigation, arbitration,
disciplinary action, prosecution or any other legal proceedings
suffered or incurred by the Exchange on account of or as a result of
any act of commission or omission or default in complying with any
of the provisions of the FCRA, and the Rules framed there under or
these Bye-Laws or the Rules or Regulations of the Exchange or due to
any agreement, contract or transaction executed or made in pursuance
thereof or on account of negligence or fraud on the part of any
member of the Exchange or the Clearing Agency as aforesaid and their
employees, servants and agents.
- Disclaimer
Where any loss or damage is caused to or incurred by any party or
person on account of or as a result of any act of commission or
omission or default in complying with any of the provisions of the
FCRA and the Rules framed there under or these Bye-Laws or the Rules
or Regulations of the Exchange or any agreement, transaction or
contract executed or made in pursuance thereof on account of
negligence or fraud on the part of any member of the Exchange or the
Clearing Agency that is not a part of the Exchange but is an
independent entity or their employees, servants or agents, in the
event of the Exchange making good or being required to make good
such loss or damages (or any part thereof) to such party or person,
the Exchange shall be entitled to recover the amount so made good by
it from the member of the Exchange or such Clearing Agency, in
default.
- Severability
If any provision of these Bye-Laws or the Rules and Regulations of
the Exchange is rendered unlawful, void or unenforceable by reason
of any statutory amendment, re-enactment, notification or any
judicial decision or pronouncement by any competent court, tribunal
or regulatory authority, such provision shall, to the extent
required, be severed and rendered ineffective without in any way
affecting the validity or enforceability of the rest of the
provisions of these Bye-Laws or the Rules and Regulations of the
Exchange, which shall continue to apply with full force and effect,
provided further that the action already taken earlier under such
provision shall remain unaffected
- Force Majeure
- The Exchange shall provide its services on best effort basis
and it shall not be liable for any harm, loss, damage and injury
caused to any person arising in any way out of causes beyond its
control.
- Without prejudice and notwithstanding anything contained
hereinabove, any failure on the part of the Exchange out of
causes beyond its control shall not in any way reduce, alter,
limit or affect the liability of a member of the Exchange in
respect of any transaction entered into or executed through the
ATS or any other trading system of the Exchange by such member.
- Any delay or failure to observe or comply with any requirement,
either in full or in part under these Bye-Laws or the Rules and
Regulations of the Exchange, may be dealt with by the Exchange as a
violation of the Bye-Laws, Rules or Regulations of the Exchange.
- The provisions of these Bye-Laws or the Rules and Regulations of
the Exchange as determined from time to time are intended solely for
the benefit of the members of the Exchange, their clients and their
respective successors or permitted assigns, if any, to facilitate
carry out the orders by the members either for themselves and/or on
behalf of the clients, whether such orders are placed directly with
the members or through any one of other intermediaries and determine
rights and liabilities inter-se between the members, other
intermediaries and clients and across themselves, in relation to
trading, clearing and settlement of transactions as provided in
these Bye-Laws, Rules and Regulations framed there under and these
provisions do not confer any beneficiary right to any other party or
person.
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