Circular No: ACE/MEM-003/2014/103 August 11, 2014 Submission of Annual Return and Annual Compliance Report In terms of provisions of the Rules, Bye-Laws and Business Rules of the Exchange, the members of the Exchange are notified as under: 1. Submission of Annual Return All the members who have traded on the Exchange platform in the financial year 2013 2014 are required to furnish Annual Return as per the formats provided herein below: Sr No Particulars Reference Annual Return* 1 Checklist for submission of Annual Return Annexure 1 2 Self attested Financial Statements (which includes Balance Sheet, Profit and Loss Account/ Income and Expenditure - Account, Directors and Auditor s Reports) duly certified by a CA 3 Net worth certificate along with computation sheet duly certified by CA Annexure 2 4 Details of Directors/ Partners/ Proprietor/ Karta/Individual Annexure 3 5 Details of Shareholding/Sharing Pattern duly certified by CA / CS (Applicable to Body corporate / Partnership firm/llp) Annexure 4 6 Details of Dominant Promoter Group (DPG) (Applicable to unlisted Body corporate / Partnership firm/llp) Annexure 5 7 Undertaking from Relatives supporting the DPG (if applicable) Annexure 6 8 Undertaking from Body corporate supporting the DPG (if applicable) Annexure 7 9 Shareholding pattern of Body corporate supporting the DPG (if applicable) Annexure 8 10 Declaration from Individual/Proprietor/Partner/Director Annexure 9 11 Other Details of Member Annexure 11 * Members who have not complied with the Base Minimum Capital requirement as specified in Exchange Circular number ACE/C&S-014/2013/086 dated September 23, 2013 need not submit the Annual Return.
Inactive Members: The members who have been activated for trading prior to April 1, 2014 but have remained inactive during the year 2013-14 may submit only the following documents: 1. Declaration cum confirmation for inactive member ( Annexure 10) 2. Net worth certificate ( Annexure 2) 3. Other Details of Member ( Annexure 11) Inactive members (defined for the purpose of this Circular) are the members who have not undertaken any trade on the Exchange in the financial year 2013-2014. Members are requested to ensure that all the applicable documents should be submitted together in the prescribed format latest by October 31, 2014. Piecemeal submission will not be entertained. Failure to submit the Annual Return to the Exchange within the stipulated time would attract appropriate penal action. 2. Submission of Annual Compliance Report Further, all the members who have traded during the financial year 2013-14 on the Exchange platform (irrespective of their current status i.e. activated or deactivated) are required to furnish Annual Compliance Report as per the format prescribed in Annexure 12 latest by October 31, 2014. Failure to submit the Annual Compliance Report to the Exchange within the stipulated time would attract appropriate penal action. For and on behalf of Ace Derivatives and Commodity Exchange Ltd. Manish Jain Head Legal & Compliance
For any clarifications or assistance, please contact the Customer Service Group at 022-6670 9201 or send us an email at services@aceindia.com
Annexure 1 Checklist for submission of Annual Return Name of the Member Member ID Sr. No. Particulars Yes/No/NA 1 2 Self attested Financial Statements (which includes Balance Sheet, Profit and Loss Account/ Income and Expenditure Account, Directors and Auditor s Reports) duly certified by a CA Net worth certificate along with computation sheet duly certified by CA 3 Details of Directors/ Partners/ Proprietor/ Karta/Individual 4 Details of Shareholding/Sharing Pattern duly certified by CA / CS 5 Details of Dominant Promoter Group (DPG) 6 Undertaking from Relatives supporting the DPG 7 Undertaking from Body corporate supporting the DPG 8 Shareholding pattern of Body corporate supporting the DPG 9 Declaration from Individual/Proprietor/Partner/Director 10 Declaration cum Confirmation of Inactive Member 11 Other Details of Member Signature and seal of the member
Annexure 2 Certificate date: Submitted by: CERTIFICATE (To be given by a practicing Chartered Accountant) This is to certify that the Net worth of Mr. /Ms / M/s as on as per the statement of computation of even date annexed to this report is Rupees only). We further certify that the computation of Networth, based on my / our scrutiny of the books of accounts, records and documents, is true and correct to the best of my / our knowledge and as per information provided to my / our satisfaction. For (Name of Accounting Firm) Name of Partner/Proprietor Membership Number Rubber Stamp Note: Detailed computation to be attached to this certificate.
Composition of Net worth of the Members The Members will have the option of computing their net worth as per any of the two methods given below. Members may choose any one method, which should then be followed always. Any change in method will require prior approval from the Exchange Method 1: The net worth should be computed either as per the format given below: (Rs. In Lakhs) Paid Up capital* Net worth calculated as follows Paid up capital Add: Reserve & Surplus (excluding revaluation reserves) Less: Accumulated losses if any - Less: Miscellaneous Expenditure - Total Net worth * Give details of capital issued after the date specified above. For (Name of Accounting Firm) Name Partner/Proprietor Membership Number Rubber stamp
Method 2: By valuation of assets on the following basis: A. Listed (Quoted) investments in the name of the applicant (at market value) B. Margin of 30% on market value of listed (quoted) Investments C. Net value of listed Investments (A) (B) D. Investments in unlisted (unquoted) companies (as per Note No. 2) E. Margin of 50% on (D) F. Net value of unlisted Investments (D) (E) G. Other Investments (at cost) with PPF and NSC at current value, Statutory deposits with Ace, Deposits with registered NBFCs, Bank FDs H. Total Net Investments (C) + (F) + (G) I. Market Value of Land & Building component of the Fixed Assets J. Margin on I at 50% K. Net value of such fixed assets (I J) L. Debtors not exceeding 3 months + Cash & Bank balance M. Current Liabilities N. Long term liabilities O. Networth (H + K + L) (M + N) For (Name of Accounting Firm) Name of Partner /Proprietor Membership Number Rubber Stamp
Notes: 1. Valuation of fixed assets for the consideration of net worth would have to be certified by government approved valuers which should not be more than 2 years old. Only those items of land & building that are in the name of the member as well as in the possession of the member shall be included under the head (I) - Land & Building component of the Fixed Assets. Those properties that are taken on lease shall not be included for computation of net worth. Fixed Assets other than Land & Building shall not be included for the purpose of computation of net worth. 2. Valuation of unlisted investments would be at fair value of the said investment, i.e. the average of the break up value and the earning value. For this purpose: - a) The break up value means the equity capital and reserves as reduced by intangible assets and revaluation reserves, divided by the number of equity shares of the investee company. b) The earning value means the value of an equity share computed by taking the average of profits after tax as reduced by the preference dividend and adjusted for extraordinary and non-recurring items, for the immediately preceding three years and further divided by the number of equity shares of the investee company and capitalised at the following rate: In case of predominantly manufacturing company, eight percent; In case of predominantly trading company, ten percent; and In case of any other company, including an NBFC, twelve percent; If, an investee company is a loss making company, the earning value will be taken at zero. (For e.g. earning value for an NBFC with capitalization rate of 12%, is earning per share multiplied by 100/12) 3. Current assets should exclude loans to related entities, bad and doubtful debts and debts outstanding for more than 3 months, advance against capital assets, pledged securities / assets, prepaid expenses and also intangible assets. 4. Debtors should be distinguished as debtors arising from commodity operations and others. 5. Value of membership card / Deposits with any other Stock / Commodity Exchange are to be excluded for the purpose of computation of net worth. 6. Advance / Investment with or debts due from persons / entities notified under Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 are to be excluded for the purpose of computation of net worth.
To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Annexure 3 (For Individual/Proprietor/HUF) (On letter-head of the member) Details of Individual / Proprietor / Karta as on 31.03.2014 Name Date of Birth PAN Educational Qualification Details of experience in Commodity markets or securities markets Residential Address ( please specify City, State and Pin code) Telephone, Mobile No, fax no and Email ID Directorship/ controlling stake in other companies/ partnership firm/llp Whether associated with other Exchange/ Members/Company If Yes, then give details Signature and seal of the member
Annexure 3 (For Partnership Firm / LLP) (On letter-head of the member) To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Details of Partners as on 31.03.2014 Sr. No. Name Date of Birth PAN Educational Qualification Details of experience in Commodity markets or securities markets Designated Partner (Yes/No) # Residential Address ( please specify City, State and Pin code) Telephone, Mobile No, fax no and Email ID Directorship/ controlling stake in other companies/ partnership firm/llp Whether associated with other Exchange/ Members/Company If Yes, then give details Note: # Designated partner(s) should possess adequate experience pertaining to derivatives or commodity futures market. Signature and seal of the member Signature and seal of the member
Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Annexure 3 (For Body Corporate) (On letter-head of the member) Details of Directors as on 31.03.2014 Sr. No. Name Date of Birth PAN DIN Educati onal Qualific ation Details of experience in Commodity markets or securities markets Designate d Director (Yes/No) # Residential Address ( please specify City, State and Pin code) Telephone, Mobile No, fax no and Email ID Belongs to Promoter Group (Yes/No) Belongs to Dominant Promoter Group (Yes/No) Directorship/ controlling stake in other companies/ partnership firm/llp Whether associated with other Exchange/ Members/ Company If Yes, then give details Note: # Designated director(s) should possess adequate experience pertaining to derivatives or commodity Futures Market. Signature and seal of the member Signature and seal of the member
Annexure 4 (For Partnership Firm/LLP) (On letter-head of the member) To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Note: Sharing pattern of as on 31.03.2014 Sr. No. Name of the Partner ( Name in full) Capital (Rs. In lakhs) Sharing ratio (%) 1 2 3 4 5 6 7 8 TOTAL 100% 1. In case of a body corporate holding 20 % or more of the capital in the firm, the shareholding pattern of such body corporate shall also be furnished. 2. Each page of this annexure is to be signed and stamped by CA / CS Signature and seal of the member Signature and seal of the member
CERTIFICATE (To be given by a practicing Chartered Accountant/Company Secretary) This is to certify that the sharing pattern in M/s as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction. For (Name of the firm) Name of the Partner/Proprietor Membership Number Rubber stamp
Annexure 4 (For Body Corporate) (On letter-head of the member) To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Shareholding pattern of M/s as on 31.03.2014 Paid Up Capital Rs. Equity/ Preference (Please indicate and use separate sheets for equity/ preference shares) Sr. No. Name of the shareholder Number of shares held Face value per share Amount up (Rs. in lacs) Paid 1 2 3 4 5 Others TOTAL 100% Note: % of total PAN 1. In case of body corporate holding 20 % or more of the paid up capital in the company, the shareholding pattern of such body corporate shall also be furnished in the same format as given above 2. Each page of this annexure is to be signed and stamped by CA / CS Signature and seal of the member Signature and seal of the member
CERTIFICATE (To be given by a practicing Chartered Accountant/Company Secretary) This is to certify that the Shareholding in as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction. For (Name of the firm) Name of the Partner / Proprietor Membership Number Rubberstamp
To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Annexure 5 (For Partnership Firm /LLP) (On letter-head of the member) Details of Dominant Promoter Group as on 31.03.2014 Sr. No. Name of dominant partner Address of the dominant Partner Name of person(s) / (please also specify corporate (s) City, State and Pin supporting dominant code) partner Relation # Capital (Rs. in lacs) Sharing ratio (%) @ % of Total Sharing ratio 1 Self Relatives 2 3 TOTAL
Note: # Please specify relation of person supporting dominant partner @ For arriving at sharing of person constituting the dominant promoter group the dominant promoter s parents, spouse, children and their descendants, brothers and sisters only may be counted as specified / close relatives provided these relatives give an irrevocable, unconditional support in writing in the prescribed format. Signature and seal of the member Signature and seal of the member
To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Annexure 5 (For Body Corporate) (On letter-head of the member) Details of Dominant Promoter Group as on 31.03.2014 Sr. No Name of dominant shareholder Address of the dominant Shareholder( please also specify City, State and Pin code) Name of person(s) / corporate (s) supporting dominant partner Relation # No. of shares Held Total Amt paid up (Rs. in lacs) % of Total @ % of Total 1 Self Relatives 2 3 TOTAL Note:
# Please specify relation of person supporting dominant partner @ For arriving at sharing of person constituting the dominant promoter group the dominant promoter s parents, spouse, children and their descendants, brothers and sisters only may be counted as specified / close relatives provided these relatives give an irrevocable, unconditional support in writing in the prescribed format. Signature and seal of the member Signature and seal of the member
Annexure 6 (For Partnership Firm/LLP) Undertaking from Relatives supporting the DPG (if applicable) I, Mr./Ms./Mrs, son / daughter / wife of resident of declare that I am partner in the Partnership Firm/LLP for sharing profit and loss to the extent of % as on (Date) I state that I shall irrevocably and unconditionally support in respect of my sharing pattern to Mr./ Mrs., a partner in the above mentioned partnership firm. I further state that I have no objection to my above mentioned sharing pattern being clubbed with the sharing pattern of Mr. / Mrs. who is my (give relationship with the latter) for the purpose of determining the dominant partner group of the said Partnership Firm/LLP This support is irrevocable and I also undertake to give prior information to Ace Derivatives and Commodity Exchange Limited before selling or otherwise transferring my part or whole of my above mentioned sharing pattern. Signature: (Name of the Relative supporting the DPG) WITNESSES: (1) Name: (2) Name: Address: Signature: Address: Signature: Date Note: For arriving at sharing of person constituting the dominant promoter group the dominant promoter s parents, spouse, children and their descendants, brothers and sisters only may be counted as specified / close relatives provided these relatives give an irrevocable, unconditional support in writing in the prescribed format.
Annexure 6 (For Body Corporate) Undertaking from Relatives supporting the DPG (if applicable) I, Mr. /Ms. /Mrs., son/daughter/wife of Mr., resident of declare that I am the absolute owner of (no.) of shares of Rs. each, which constitutes % of the total paid up capital of the company as on this date. I state that I shall irrevocably and unconditionally support in respect of my shareholding to Mr./Ms., a shareholder in the above mentioned company. I further state that I have no objection to my above mentioned shareholding being clubbed with the shareholding of Mr., who is my (give relations with the latter ) for the purpose of determining the dominant promoter group of the said company. This support is irrevocable and I also undertake to give prior information to Ace Derivatives and Commodity Exchange Limited before selling or otherwise transferring any part or whole of my above mentioned shareholding. Signature: (Name of the Relative supporting the DPG) WITNESSES: (1) Name: (2) Name: Address: Signature: Address: Signature: Date Note: For arriving at sharing of person constituting the dominant promoter group the dominant promoter s parents, spouse, children and their descendants, brothers and sisters only may be counted as specified / close relatives provided these relatives give an irrevocable, unconditional support in writing in the prescribed format.
Annexure 7 Undertaking from Corporate entity supporting the DPG (if applicable) We, M/s. Limited, incorporated as a Company under the Companies Act, 1956 and having its registered office at do state as under: 1. As per the existing norms of (Ace), the shareholding of Mr./Ms. * in our company in direct proportion to our shareholding in the Member Company, may be reckoned for the purpose of arriving at the dominant promoter group in M/s. (Member Company). 2. We are % shareholder of the Member Company and Mr./Ms., dominant promoters of the Member Company along with his/her specified relatives i.e., are having % shareholding in our company. 3. Mr./Ms. * have requested Ace to consider their shareholding in our company in the permissible proportion to arrive at the dominant shareholders in the Member Company and also requested us to give an irrevocable undertaking extending unconditional support to Mr. /Ms. (Name of the Dominant promoters of the Member Company) to enable Ace to consider the aforesaid as dominant promoter group. 4. We hereby extend our unconditional and irrevocable support in support of Mr./Ms. (Name of the Dominant promoters of the Member Company) for the purpose of the determining the dominant promoter group in the said Member Company. 5. We also undertake to give prior information to Ace before effecting any change in the shareholding of Mr./Ms..* For M/s Name and signature of the Director: WITNESSES: (1) Name: (2) Name: Address: Signature: Address: Signature: Date * Name of the Dominant Promoters of the Member Company along with their specified relatives having shareholding in the corporate giving the undertaking.
Annexure 8 (On letter-head of the body corporate) To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Shareholding pattern of M/s as on 31.03.2014 Paid Up Capital Rs. Equity/ Preference (Please indicate and use separate sheets for equity/ preference shares) Sr. No. Name of the shareholder Number of shares held Face value per share Amount up (Rs. in lacs) Paid % of total 1 2 3 4 5 Others TOTAL 100% Note: 1. Each page of this annexure is to be signed and stamped by CA / CS Signature and seal of the body corporate Signature and seal of the body corporate
CERTIFICATE (To be given by a practicing Chartered Accountant/Company Secretary) This is to certify that the Shareholding in as given above, based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction. For (Name of the firm) Name of the Partner / Proprietor Membership Number Rubber stamp
Annexure 9 Declaration from Individual/Proprietor/Partner/Director (On the letter head of the member) To, Membership Department Infinity IT Park, 4th Floor, Building No. 4, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Dear Sir, I/We hereby confirm/undertake that (Trade Name of the Member) and its Karta / Partner(s) / Director(s) and constituents of dominant promoter group; a. am /are not debarred/ suspended/ declared defaulters by SEBI/FMC/RBI/any recognized Stock Exchange/Commodity Exchange b. have no complaints/disciplinary action/ proceedings/ penalty at SEBI/FMC/RBI/any recognized Stock Exchange/Commodity Exchange. c. have no pending investigation/ enquiry by SEBI/FMC/RBI/any recognized Stock Exchange/Commodity Exchange. d. have not been convicted of any offence / punished for contravention of any provisions of the FCR Act or Regulations made there under or any other applicable Act or Regulations made there under e. am / are not connected with any of the defaulting/ suspended member of any recognized Stock Exchange/Commodity Exchange. f. am /are not declared insolvent by Stock Exchange/Commodity Exchange In case of any action/complaints/investigation/enquiry by any Statutory Agency/Regulatory Agency/Stock Exchange/Commodity Exchange or any statutory body in future, We undertake to intimate the same to the Exchange immediately. I/We declare that the information given above is true. Signature and seal of the member Signature and seal of the member
Annexure 10 Declaration cum Confirmation of Inactive Member (On the letter head of the member) To, Membership Department 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 Sub: Our Membership of the Exchange: Member ID: Dear Sir, With reference to your Circular no.ace/mem-003/2014/103 dated August 11, 2014, I/We (Name of Member) do declare and confirm as under: a. I/ We have not traded on the Exchange during the financial year 2013-2014. b. I/ We have got our books of accounts for the financial year ended 2013-2014 audited by qualified Chartered Accountant and will arrange to submit the same as and when required by the Exchange or by auditors appointed by the Exchange and/or Forward Markets Commission. c. I/We have enclosed our Networth Certificate and computation thereof as on in the prescribed formats duly certified by Chartered Accountant. d. I/We hereby declare that there is no change in the present address / contact details and if there is any change the same will be intimated to the Exchange in the prescribed format. e. I/We hereby declare that there is no change in the Proprietor / Karta / Designated Partners/Directors, Sharing/Shareholding Pattern and Dominant Promoter Group (DPG) of the member entity and if there is any change the same will be intimated to the Exchange in the prescribed format. Signature and seal of the member Signature and seal of the member
Annexure 11 Other details of Member (On the letter head of the member) Sr. No. Particulars Details 1 Registered office address Address Contact person Tel No Fax No Mobile No Email ID 2 Correspondence office address Address Contact person Tel No Fax No Mobile No Email ID 3 Details of Principle officer Name Office Address City State Pin Code Tel ( with STD) Fax (with STD) Mobile: Email: 4 Details of Compliance officer Name Office Address City State Pin Code Tel ( with STD) Fax (with STD) Mobile: Email:
5 Occupation of a Member: Farmers Hedgers Commodity Traders Others (Please specify ) 6 Details of Membership of Member / its subsidiaries /holding co. /group company/associate with other Exchanges Name & Address of Entity Name of the Exchange Membership Number Date of acquiring Membership 7 Details of promoters: (Details to be given for all promoters) Name Address City State Pin Code Tel ( with STD) Fax (with STD) Mobile: Email: Note: Please attach additional sheets, if required. Signature and seal of the member Signature and seal of the member
To Head Legal & Compliance Annexure 12 Annual Compliance Report 2013 2014 4th Floor, Building No. 4, Infinity IT Park, Gen. A. K. Vaidya Marg, Malad (East), Mumbai 400 097 I/We, M/s. a Member of the Exchange (Member ID ) hereby certify and confirm that for the year/period ended March 31, 2014, I/we have complied with all the provisions of the Bye Laws, Rules, Business Rules, Circulars and Directives issued by the Exchange/Forward Markets Commission from time to time, in general and in particular all the specific areas listed in the Annexure of this Report. Details of non-compliance(s), deviation(s) and exception(s), if any, are also listed therein with appropriate remarks. I/We, hereby declare that the details furnished in the Annexure are true and correct to the best of my/our knowledge and belief. For and on behalf of (Name of member) Signature of Managing Director/Whole Time Director/ Managing Partner /Proprietor/Karta Name: Office seal
Annexure Sr. No. Rule/Bye Law/ Business Rules/ Circular of the Exchange Particulars Status of compliance (Yes / No) 1. Books of Accounts, Documents, Records and Registers 1.1 Business Rule 7.1 Register of Transactions (Sauda Book) Remarks 1.2 Business Rule 7.1 Exchange wise Client Ledgers 1.3 Business Rule 7.1 General Ledgers 1.4 Business Rule 7.1 Journals 1.5 Business Rule 7.1 Cash Book 1.6 Business Rule 7.1 Bank Pass Book / Statement 1.7 Business Rule 7.1 Register of Commodities 1.8 Business Rule 7.1 Records in respect of Premium / Discount and final settlement amounts (including taxes and charges on commodities of constituents)
Sr. No. Rule/Bye Law/ Particulars Status of Remarks Business Rules/ compliance (Yes Circular of the / No) Exchange 1.9 Business Rule Register of complaints / investors 7.1.16 grievance register 1.10 Business Rule 7.1.3 Records in respect of brokerage collected (c) separately from Constituents 1.11 Business Rule Records maintained after closing of 7.1.13 constituents account for a period of not less than six years. 1.12 Business Rule 6.2.1 Records of all relevant particulars of (a) persons who are approved as users by the Exchange have been maintained. 2. Dealings With Clients 2.1 Business Rule 6.4.1, Know Your Client (KYC) forms, Risk Circular no. Disclosure document, Rights and ACE/L&C- Obligations of members, authorized 001/2010/001 dated persons and clients, Common client October 26, 2010, registration forms, Dos and Don t s for the ACE/L&C- Investors and tariff sheet are obtained 001/2012/006 dated from all clients before accepting or January 11, 2012, placing orders on their behalf. ACE/L&C- 007/2013/078 dated August 29, 2013 and ACE/L&C- 001/2014/029 dated March 24, 2014
Sr. No. Rule/Bye Law/ Particulars Status of Remarks Business Rules/ compliance (Yes Circular of the / No) Exchange 2.2 Circular no. Obtention of PAN details/ Declaration ACE/L&C- Details of Income Tax PAN numbers or 001/2010/001 dated the declaration of not having PAN have October 26, 2010 been obtained from all active clients and uploaded. 2.3 ACE/L&C- Guidelines on Pre- Funded Instruments 012/2011/096 dated October 10, (Pay Order and Demand Drafts) / Electronic Fund Transfer are followed. 2011 2.4 ACE/L&C- KYC documents such as MCA, RDD, 003/2010/009 dated KYC Forms etc. required to be signed by October 26, 2010 clients do not contain inequitable, onerous or unreasonable conditions imposed on clients such as:- (i) Waiver to the Member from sending contract notes; (ii) Retaining the M-T-M (mark to market) gains by the Member with himself; (iii) Any condition which gives the member the freedom to trade on behalf of the client without the explicit and specific order issued by the client. 2.5 ACE/L&C- Unique client codes have been allotted to 005/2010/026 dated all clients and the correct client codes 28.10.2010 have been entered in the system while placing orders on behalf of clients which have been correctly mapped to the back office accounts. Client details as required
Sr. No. Rule/Bye Law/ Particulars Status of Remarks Business Rules/ compliance (Yes Circular of the / No) Exchange have been maintained and have been provided to the Exchange as required. 007/2011/045 dated April 27, 2011 Monitoring of Inactive clients 1. Not accepted trades in Inactive Client Accounts without obtaining undertaking from clients in the format prescribed by the Exchange and in case material changes in client details are observed, fresh KYC is carried out. 2.6 ACE/L&C- 2. Trades are executed in the same client code i.e., the client code issued earlier to the concerned client. 2.7 ACE/MEM-001/2013/ Uploaded the Mobile number / Email IDs of 001 dated January 1, the clients in the UCC database, to ensure 2013, that SMS / Emails are sent to its ACE/MEM- 007/2013/046 dated constituents for the trades carried out by them. June 4, 2013 & ACE/MEM- 008/2013/053 dated June 26, 2013. 2.8 Business Rule 5.3.2 Pay-in of funds due from clients is received from the respective clients only.
Sr. No. Rule/Bye Law/ Business Rules/ Circular of the Exchange Particulars 2.9 Business Rule 5.3.2 Payout of funds due to the clients is made to the respective clients only. Status of compliance (Yes / No) Remarks 2.10 ACE/L&C- 003/2010/009 dated 26.10.2010. Evidence of the client placing orders (physical form or in the form of sound recording), has been maintained. 3. Margins Margins are collected from clients as specified by the Exchange. 3.2 Business Rule 5.9.5 MTM settlement is collected from the constituents as prescribed 3.3 Business Rule 5.3 Margins are collected from the director or an employee of the Member 4. Contract Notes 3.1 Business Rule 5.7 and ACE/L&C- 002/2010/010 dated January 14, 2012 4.1 Business Rule 5.7, ACE/L&C- 008/2011/046 dated May 02, 2011 and ACE/L&C- 001/2014/029 dated March 24, 2014 Contract notes have been dispatched to all constituents within 24 hours of execution of trades
Sr. No. Rule/Bye Law/ Business Rules/ Circular of the Exchange 008/2012/032 and 4.2 Business Rule 5.7, ACE/L&C- ACE/L&C- 005/2013/063 dated July 17, 2013 Particulars Contract Notes are issued in the prescribed formats 4.3 Contract note shall be signed by a 4.4 ACE/L&C- 003/2010/009 dated October 26, 2010 Member or his Authorized signatory and shall be numbered with unique running serial number initiated at the beginning of each financial year. Copies/duplicates of Contract Notes issued by the Trading Member are maintained. Status of compliance (Yes / No) Remarks 4.5 ACE/L&C- 003/2010/009 dated October 26, 2010 Evidence of having dispatched the contract note to the client has been preserved 4.6 Business Rule 5.7 and ACE/L&C- 008/2011/046 dated May 02, 2011 4.7 Business Rule 5.7 and ACE/L&C- 008/2011/046 dated May 02, 2011 Electronic Contract Notes (ECN) form has been obtained from the client specifically indicating his preference for receipt of contract notes in electronic form. Whether ECN Declarations have been obtained from the clients
Sr. No. Rule/Bye Law/ Business Rules/ Circular of the Exchange Particulars 4.8 Business Rule 5.8.3 Brokerage has been charged separately and indicated separately, in the contract note. Status of compliance (Yes / No) Remarks 5. Handling of Funds and Commodities 5.1 Business Rule 7.1.5 Maintaining Separate Client and Own Bank Accounts. 5.2 Business Rule 7.1.6 Segregation of Client s Funds and Own Funds 5.3 Business Rule 7.1.6 & ACE/L&C- 008/2011/046 dated May 02, 2011 Statement of accounts has been sent every month to all the clients in physical form. The proof of delivery of the same has also been preserved by the member. 5.4 Business Rule 7.1.6 No transfer / withdrawal from clients 5.5 ACE/L&C- 009/2010/039 dated 10.12.2010 account is made except under the circumstances enumerated in Business Rules. All payments have been received/made from/to the clients strictly by account payee crossed cheques/ demand drafts or by way of direct credit into the bank account through EFT, or any other mode allowed by RBI. 5.6 Business Rule 6.7.5 Funds/commodities of constituents have not been improperly used
Sr. No. Rule/Bye Law/ Business Rules/ Circular of the Exchange Particulars Status of compliance (Yes / No) 5.7 Business Rule Full payment of funds / commodities have 6.5.14 been made to all constituents within 24 hours of receiving the relevant pay out. 5.8 ACE/L&C- Quarterly settlement of account of clients. 006/2012/026 dated February 17, 2012, ACE/L&C- 002/2013/043 dated May 30, 2013 & ACE/L&C- 004/2013/056 dated June 28, 2013 5.9 Business Rule 6.5.14 Commodities of the constituents have and 6.7.5 always been kept in a separate constituent beneficiary account and operated. 5.10 ACE/L&C- Complied with the guidelines for dealing in 002/2014/030 dated cash transactions with clients March 24, 2014 6. Trading and Office Management 6.1 Business Rule 4.2 Trading terminals are operated by the respective approved users only. 6.2 Business Rule 4.1.13 TWS terminals have not been extended /installed without the approval of the Exchange. 6.3 Business Rule 4.2.8 Former trading member or a user of such (d) trading member is not a user without the approval of the Exchange. Remarks
Sr. No. Rule/Bye Law/ Business Rules/ Circular of the Exchange Particulars Status of compliance (Yes / No) 6.4 ACE/TECH- Information of the CTCL Terminals allotted 002/2011/069 dated are uploaded on the Extranet. July 18, 2011 6.5 Trades executed for own account have not been subsequently transferred to a constituent and vice versa 6.6 ACE/T&S- Trades on own account have been 006/2012/022 dated executed under OWN code only and no February 3, 2012 client code is allotted to carry out proprietary trades. 6.7 ACE/TECH- The Guidelines on Algorithmic Trading/High 002/2013/023 dated Frequency Trade (HFT) have been March 28, 2013, complied with. ACE/TECH- 003/2013/029 dated April 15, 2013 and ACE/TECH- 001/2014/001 dated January 01, 2014. 6.8 ACE/TECH- System Audit of Algo trading system and 002/2013/023 dated submission of Audit Report to the March 28,2013 Exchange. 7. Membership Requirements 7.1 ACE/MEM- No change in share holding involving 001/2010/016 dated change in DPG constituents / percentage October 26, 2010 of DPG Constituents has been and ACE/MEM- undertaken without prior approval of the 006/2012/059 dated Exchange. April 30, 2012. Remarks
Sr. No. Rule/Bye Law/ Business Rules/ Circular of the Exchange Particulars 7.2 ACE/MEM- No change in shareholding wherein 001/2010/016 dated percentage holding of the existing DPG October 26, 2010 constituents goes below 51% has been undertaken 7.3 ACE/MEM- Change in directors / partners of the 001/2010/016 dated corporate / firm has been intimated to the October 26, 2010 Exchange. 7.4 Net worth is being maintained above the minimum stipulated level at all times. 7.5 Rule 5.20.1 (i) and No advertisements have been released ACE/L&C- for business purposes contrary to the 007/2010/037 dated Guidelines issued by the Exchange. December 10, 2010 7.6 Bye Law 5.29 Trading member acting for another trading member: We have not acted through or on behalf of another trading member for trading on the Exchange either for proprietary trading or for trading on behalf of clients without the prior approval of the Exchange in writing. 8. Others 8.1 Bye Law 18.6.1 (e) No brokerage has been shared with or carries on business or makes any deal for or with any Trading Member/Clearing Member who has been suspended, expelled or declared a defaulter. Status of compliance (Yes / No) Remarks
Sr. No. Rule/Bye Law/ Particulars Status of Remarks Business Rules/ compliance (Yes Circular of the / No) Exchange 8.2 ACE/L&C- We do not indulge in Portfolio 002/2010/008 dated Management Services (PMS) October 26, 2010, ACE/L&C- 010/2013/090 dated October 7, 2013 and ACE/L&C- 011/2013/104 dated November 11, 2013 8.3 ACE/MEM- Obligations of the member as stated in 001/2012/027 dated the regulatory framework for market February 17, 2012 access through Authorised Persons is adhered to. 8.4 ACE/MEM- Periodic Inspection/Audit of Authorized 001/2012/027 dated Persons is carried out February 17, 2012 8.5 ACE/L&C- Guidelines for Anti Money Laundering 002/2010/008 dated and Know Your Customer (KYC) Norms October 26, 2010 have been adhered to including intimation and ACE/L&C- of details of the Principal Officer to The 006/2013/077 dated Director-FIU. August 29, 2013. 8.6 ACE/L&C- Display of Details at Member s Office 008/2010/038 dated December 10, 2010 The prescribed details are prominently displayed at the Member s main/ branch office as also at the offices of the Authorised Persons
Sr. No. Rule/Bye Law/ Particulars Status of Remarks Business Rules/ compliance (Yes Circular of the / No) Exchange 8.7 ACE/L&C- BPO/KPO Services are segregated from 005/2011/042 dated commodity derivatives markets. April 18, 2011 For and on behalf of (Name of member) Date : Signature of Managing Director/Whole Time Director/ Managing Partner /Proprietor/Karta Name: Office seal
Notes: 1. Please initial on all pages. 2. Kindly give details of partial/non compliances in the remarks column. 3. Kindly note that for items referred as Not Applicable, the member must provide reasons for non applicability in the respective remarks column. 4. Please also note that no item shall be left blank and that any item that is left blank will be construed as not complied with. 5. Where space in remarks column is not sufficient for comment, please enclose self certified annexure/s. 6. Download the editable (.pdf) of the ACR 13 14 from ACE website under Downloads section or click http://www.aceindia.com/membership/compliance