What to do
*Trade only through registered Members.
*Familiarize yourself with relevant Forward Markets Commission (FMC) guidelines. *Go through all rules, regulations, byelaws and circulars issued by MCX.
1)Take an informed decision
2)Understand commodity contracts specifications.
3)Understand commodity details and price impacting parameters.
4)Study historical and seasonal price movements.
5)Track government policy from time to time.
*Understand the delivery and settlement procedure.
*Be aware of the risk associated with your position in the market.
*Comply with taxation and other relevant state laws to avoid penal actions.
*Pay all the applicable margins to your trading members including the initial margins. *Collect / pay mark-to-market margins on your futures position on a daily basis *Make and receive payments only through cheques.
*Insist on documentation with the member
*Obtain receipt for collateral deposited with the Members towards margin.
*Insist on a periodical statement of your ledger account and reconcile it.
*Scrutinize minutely, both, the transaction and the holding statements that you receive from *your Depository Participant (DP).
*Keep the Delivery Instruction Slips (DIS) Book issued by DP’s in safe custody.
*Ensure that the DIS numbers are pre-printed and your Client account number is pre-stamped.
Freeze your demat account in case of a long absence or when not using the account frequently.
Deliver the commodities in case of sale or pay the money in case of purchase within the time prescribed.
What not to do
*Do not heed market rumours.
*Do not get misled by luring advertisements, rumours, hot tips, promise of returns, etc.
*Do not get swayed by bull/bear run of market sentiments.
*Do not trade on any contract without knowing the risks associated with it.
*Do not deal with entities who are not members of recognized commodity exchanges.
*Do not undertake off-market transactions in commodities futures.
*Do not make or receive payments from members in cash.
*Do not accept unsigned contract notes.
*Do not sign blank Delivery Instruction Slips.
*Do not delay payment/deliveries of commodities to Member.
