You are here: Home » Markets » News

Sebi aligns commodity futures trading norms with equity markets

Sebi said that members of commodities' derivatives markets need to segregate funds owned by their clients with own

As the first anniversary of the Forward Commission (FMC)’s merger with the Securities and Exchange Board of India (Sebi) nears, has aligned all norms applicable to until now to derivatives markets.

was merged with on September 27, 2015. But, norms set for the futures market by were to remain effective for one year or until the same were revised by Sebi.

Since a year’s period of the effectiveness of commodities norms is completing on September 26, has made norms applicable for the securities to commodities futures as well. In this process, a circular dated September 23 said members of commodities’ derivatives need to segregate funds owned by their clients with own funds. They also need to segregate securities with commodities. clarified that the had not issued any circular in this regard. “Large brokers were doing such segregation. Hence, the new norms would be applicable to a handful of small brokers who were not doing such segregation earlier. But, Sebi’s move to align commodities derivatives to is a good move,” said a senior official with a large broking firm.

Until now, brokers were informing clients about their account positions including holding of traded commodities along with other details. But, the circular makes it mandatory to create an exclusive e-mail identity for redressal of investor complaints according to the existing practice in markets.

Apart from that, has directed brokers to display vital information such as logo, registration number, contract note, and investor grievance redressal mechanism on their notice board.

The broking firm official said that the guideline on outsourcing of activities by intermediaries as directed by was unclear as to what services a broker could outsource.

The regulator has directed brokers to send statements of accounts to their clients in the physical form on a monthly basis.

image
Business Standard
177 22
Business Standard

Sebi aligns commodity futures trading norms with equity markets

Sebi said that members of commodities' derivatives markets need to segregate funds owned by their clients with own

Dilip Kumar Jha  |  Mumbai 

Sebi aligns trading norms of equity with commodity futures

As the first anniversary of the Forward Commission (FMC)’s merger with the Securities and Exchange Board of India (Sebi) nears, has aligned all norms applicable to until now to derivatives markets.

was merged with on September 27, 2015. But, norms set for the futures market by were to remain effective for one year or until the same were revised by Sebi.



Since a year’s period of the effectiveness of commodities norms is completing on September 26, has made norms applicable for the securities to commodities futures as well. In this process, a circular dated September 23 said members of commodities’ derivatives need to segregate funds owned by their clients with own funds. They also need to segregate securities with commodities. clarified that the had not issued any circular in this regard. “Large brokers were doing such segregation. Hence, the new norms would be applicable to a handful of small brokers who were not doing such segregation earlier. But, Sebi’s move to align commodities derivatives to is a good move,” said a senior official with a large broking firm.

Until now, brokers were informing clients about their account positions including holding of traded commodities along with other details. But, the circular makes it mandatory to create an exclusive e-mail identity for redressal of investor complaints according to the existing practice in markets.

Apart from that, has directed brokers to display vital information such as logo, registration number, contract note, and investor grievance redressal mechanism on their notice board.

The broking firm official said that the guideline on outsourcing of activities by intermediaries as directed by was unclear as to what services a broker could outsource.

The regulator has directed brokers to send statements of accounts to their clients in the physical form on a monthly basis.

RECOMMENDED FOR YOU

Sebi aligns commodity futures trading norms with equity markets

Sebi said that members of commodities' derivatives markets need to segregate funds owned by their clients with own

Sebi said that members of commodities' derivatives markets need to segregate funds owned by their clients with own As the first anniversary of the Forward Commission (FMC)’s merger with the Securities and Exchange Board of India (Sebi) nears, has aligned all norms applicable to until now to derivatives markets.

was merged with on September 27, 2015. But, norms set for the futures market by were to remain effective for one year or until the same were revised by Sebi.

Since a year’s period of the effectiveness of commodities norms is completing on September 26, has made norms applicable for the securities to commodities futures as well. In this process, a circular dated September 23 said members of commodities’ derivatives need to segregate funds owned by their clients with own funds. They also need to segregate securities with commodities. clarified that the had not issued any circular in this regard. “Large brokers were doing such segregation. Hence, the new norms would be applicable to a handful of small brokers who were not doing such segregation earlier. But, Sebi’s move to align commodities derivatives to is a good move,” said a senior official with a large broking firm.

Until now, brokers were informing clients about their account positions including holding of traded commodities along with other details. But, the circular makes it mandatory to create an exclusive e-mail identity for redressal of investor complaints according to the existing practice in markets.

Apart from that, has directed brokers to display vital information such as logo, registration number, contract note, and investor grievance redressal mechanism on their notice board.

The broking firm official said that the guideline on outsourcing of activities by intermediaries as directed by was unclear as to what services a broker could outsource.

The regulator has directed brokers to send statements of accounts to their clients in the physical form on a monthly basis.
image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard