CLIENT BROKER RELATIONSHIP IN DERIVATIVE SEGMENT.
A trading member must ensure compliance particularly with relation to the following while dealing with clients:
- Filing of “Know Your Client” form.
- Execution of Client Broker Agreement.
- Bring risk factors to the knowledge of client by getting acknowledgement of client on risk disclosure document.
- Timely execution of orders as per the instruction of clients in respective client codes.
- Collection of adequate margins from the client.
- Maintaining separate client Bank account for the segregation of client Money.
- Timely issue of contract notes as per the prescribed format to the client.
- Ensuring timely pay-in and pay-out of funds to and from the clients.
- Resolving complaint of clients if any at the earliest.
- Avoiding receipt and payment of cash and deal only through account payee cheques.
- Sending the periodical statement of accounts to clients.
- Not Charging excess Brokerage.
- Maintaining unique client code as per the regulations.
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