 "FMC to make electronic contract note a part of KYC")
The commodity derivatives market regulator, Forward Markets Commission (FMC), has proposed to make electronic contract notes (ECN) a part of know your client (KYC) documents. The FMC has sought public comment on the proposal by October 10.
A contract note is a confirmation of trade in equity shares completed on a particular day for, and on behalf of, a client. The broker must send the note to the client within 24 hours of the execution of the trade.
The FMC received requests from clients and members for this: It will be more convenient and time-saving for new clients. The matter was also discussed in a meeting on August 22 with managing directors and chief executive officers of exchanges. It was agreed to provide relief to new clients.
The FMC had allowed members to issue contract notes authenticated by digital signatures, provided the broker had obtained the digital signature certificate from the certifying authority.
The ECN, however, continued to remain optional for clients. It can be revoked by the client.
The FMC emphasised all ECNs sent through email shall be digitally signed and encrypted. If the clients do not wish to receive the notes in the electronic form, the member shall continue to send in the physical form.
A contract note is a confirmation of trade in equity shares completed on a particular day for, and on behalf of, a client. The broker must send the note to the client within 24 hours of the execution of the trade.
The FMC received requests from clients and members for this: It will be more convenient and time-saving for new clients. The matter was also discussed in a meeting on August 22 with managing directors and chief executive officers of exchanges. It was agreed to provide relief to new clients.
The FMC had allowed members to issue contract notes authenticated by digital signatures, provided the broker had obtained the digital signature certificate from the certifying authority.
The ECN, however, continued to remain optional for clients. It can be revoked by the client.
The FMC emphasised all ECNs sent through email shall be digitally signed and encrypted. If the clients do not wish to receive the notes in the electronic form, the member shall continue to send in the physical form.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%