Client Broker Relationship in Derivative Segment

CLIENT BROKER RELATIONSHIP IN DERIVATIVE SEGMENT.

A trading member must ensure compliance particularly with relation to the following while dealing with clients:

  1. Filing of “Know Your Client” form.
  2. Execution of Client Broker Agreement.
  3. Bring risk factors to the knowledge of client by getting acknowledgement of client on risk disclosure document.
  4. Timely execution of orders as per the instruction of clients in respective client codes.
  5. Collection of adequate margins from the client.
  6. Maintaining separate client Bank account for the segregation of client Money.
  7. Timely issue of contract notes as per the prescribed format to the client.
  8. Ensuring timely pay-in and pay-out of funds to and from the clients.
  9. Resolving complaint of clients if any at the earliest.
  10. Avoiding receipt and payment of cash and deal only through account payee cheques.
  11. Sending the periodical statement of accounts to clients.
  12. Not Charging excess Brokerage.
  13. Maintaining unique client code as per the regulations.

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